Date: Fri, 17 July 2020
Author(s): Hideyuki Sano
Asian shares eked out gains and U.S. stock futures bounced back on Friday as hopes of more government spending around the globe outweighed concerns about rising coronavirus infections and worsening tensions between Washington and Beijing.
European shares were also expected to rise, with pan-European Euro Stoxx 50 futures, German DAX futures, Britain’s FTSE futures all up 0.1-0.2%. U.S. stock futures rose 0.2%.
MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 0.4%, paring some of its 2% losses the previous day, while Nikkei slid 0.3% on concerns about rising virus infections in Tokyo.
In China, the CSI300 index climbed 0.25%, clawing back some of Thursday’s 4.8% slide and shrugging off news that Washington is considering banning travel to the United States by all members of the Chinese Communist Party, which total more than 90 million. [nL2N2EN1L5]
Market watchers said investors are counting on U.S. policymakers to adopt more stimulus measures as the world’s largest economy struggles to contain the epidemic, with some existing programmes to support businesses set to expire within weeks.
The U.S. Congress is set to begin debating such a package next week, as several states in the country’s south and west implement fresh lockdown measures to curb the virus.
“You would think such sharp rises in infections would normally lead to fall in stock prices but at the moment, that was being offset by strong hopes for vaccines,” said Tomo Kinoshita, global market strategist at Invesco in Tokyo.
“But we now see higher risk of a market correction, considering the improvement in hard economic data we have seen over the past couple of months is likely to halt,” he said.
While retail sales for June released on Thursday beat market expectations, real-time measures of retail foot traffic and employee working hours and shifts have flatlined after steady growth since April.
The U.S. labour market remained in dire condition. There were 32 million people receiving unemployment checks under all programmes in the last week of June, down from the prior week but still the second-highest on record.
Overnight the S&P500 dropped 0.34% as investors locked in gains from rallies in high-flying tech shares ahead of earnings later this month.
Kicking off technology sector results, Netflix skidded 9.1% after the bell as the company posted slower subscriber growth than Wall Street’s high expectations and forecast a further slowdown in the pace of expansion in the current quarter.
In currencies, the euro hovered below the four-week high it touched earlier this week, but stayed firm as European Union leaders meet on Friday to seek to overcome differences over a proposed stimulus package to kickstart economic growth stifled by the coronavirus.
On the table at a summit starting later in the day - their first in-person talks around a table since the pandemic - are the EU’s 2021-27 budget and a new recovery fund worth 750 billion euros ($854 billion), which would mark a major step towards fiscal integration in Europe.
While Dutch opposition and the threat of a Hungarian veto weigh on chances for a deal, investors are pinning hopes on it being a question of when, rather than if, a deal is struck.
“Whether they will come to an agreement today, or by the end of this month, or by later this year is anybody’s guess. But there is a swell of hopes that you have seen at the start of the euro trading,” said Masaru Ishibashi, joint general manager of trading at Sumitomo Mitsui Bank.
Keyword : sterlinghousetrust.com, Sterling House Trust, SHT
Sterling House Trust is a private trust with a difference. It offers its members an exclusive and reliable platform to access unique opportunities and lifestyle services reserved for the select few. With its team of professional managers Sterling House Trust constantly scans the markets and collaborate with reliable global partners to create a portfolio of carefully curated programmes for its members. Members can access these programmes according to their individual needs, interest and financial capacity. Sterling House Trust is headquartered in Auckland, New Zealand, and has operations based in London, UK.
The Sterling House Trust platform was established with the objective of providing its members, secure access to opportunities across a range of global locations, sectors and services.
Our unique Platform was established within the framework of a trust so that the trust would have oversight and governance over the range of services and its quality. Member protection is a core principle and drive in all that we do. Our trustees ensures that the interests and quality of service provided by the Platform are always maintained at the highest standards.
The trust and its trustees provide robust oversight and is constantly on the move to identify and shortlist select opportunities in the international markets. Likewise, we apply the same stringent standards in identifying and selecting providers and professional partners to join our Platform.
The Sterling House Trust Platform utilises our international footfall and relationships to provide our members with access to a range of international opportunities via our global network which covers a broad range of sectors including:
Asset protection, international property ownership and management, alternative and direct ownership, estate planning, banking services, foreign exchange, card services, alternative investment and lifestyle services.
New Zealand Head Office
31/335 Lincoln Road,
14-16 Dowgate Hill,
England EC4R 2SU