Global Stocks Slide on Wednesday 10/28 05:22
Global shares are mostly lower as countries tighten precautions to try to
stem rising numbers of coronavirus infections.
TOKYO (AP) -- Global shares are mostly lower as countries tighten
precautions to try to stem rising numbers of coronavirus infections.
France's CAC 40 dropped 3.5% in early trading to 4,565.93, while Germany's
DAX dropped 3.3% to 11,663.00. Britain's FTSE 100 lost 2.3% to 5,595.22. U.S.
shares were poised for declines, with Dow futures down 1.7% at 26,893.0, while
S&P 500 futures were trading at 3,335.38, down 1.5%.
Optimism that the pandemic may have been brought somewhat under control has
dissipated as infections continue to rise in Europe, the U.S. and other parts
of the world.
Caution continues to hang over markets. Governments have begun to impose
restrictions on businesses and other activities to help curb surging
infections. That could choke off improvements seen since the summer. Fresh
pandemic precautions are also drawing a public backlash despite spiking levels
of illness in European countries.
Policymakers in Europe "must choose between low unemployment or low COVID
transmission rates. Unfortunately, they are now left dealing with the most
sensitive currency of them all, people's lives," Stephen Innes of Axi said in a
Few sectors, such as communication and IT services, are gaining amid the
outbreaks, deepening the pessimism in Asia. The uncertainty surrounding the
upcoming U.S. election also has left market players wary.
Japan's benchmark Nikkei 225 fell 0.3% to 23,418.51. South Korea's Kospi
gained 0.6% to 2,345.26. Australia's S&P/ASX 200 rose 0.1% to 6,057.70. Hong
Kong's Hang Seng shed 0.3% to 24,708.80, while the Shanghai Composite gained
0.5% to 3,269.24.
India's Sensex slumped 1.6% to 39,888.14, as the number of confirmed
COVID-19 cases in the country approached 8 million. Shares also fell in Taiwan.
Investors are clamoring for Congress to deliver more virus relief for the
U.S. economy, but they're increasingly acknowledging it won't happen anytime
Wall Street's caution is also apparent in how it's reacting to corporate
profit reports. Through the first two weeks of earnings season, companies that
reported better results than expected have not been getting the typical pop in
their stock price the day after.
In energy trading, benchmark U.S. crude lost $1.62 to $37.95 per barrel in
electronic trading on the New York Mercantile Exchange. It gained $1.01 to
$39.57 per barrel on Tuesday.
Brent crude, the international standard, fell $1.39 to $40.22 a barrel.
The U.S. dollar weakened to 104.27 Japanese yen from 104.41 yen late
Tuesday. The euro cost $1.1758, down from $1.1796.