United States stock futures extended losses on Friday after President Donald Trump said he and his wife have tested positive for the coronavirus, weeks ahead of elections.
Futures for the S&P 500 slid 1.21 percent by early afternoon in Asia, while US Treasury yields also fell as bond prices rose.
The US dollar was also higher, particularly against the British pound, the Australian and New Zealand dollars as investors sought what they consider relatively safe assets.
Trump said on Twitter that he and his wife had been tested for coronavirus after Hope Hicks, a senior adviser who recently travelled with the president, tested positive.
He later tweeted that he and the first lady had tested positive: “We will begin our quarantine and recovery process immediately,” he said.
Trump’s positive coronavirus test result could cause a new wave of market volatility as investors brace for the hotly contested presidential election in November.
“It has the potential to reduce Trump’s campaigning ability. He’s got a lot on and it’s an interruption,” said Sean Callow, currency strategist at Westpac in Sydney.
“It also hurts him as far as the whole narrative that it’s really not much to worry about – it puts the COVID crisis itself back front and centre.”
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.27 percent. Australia’s S&P/ASX 200 index fell 0.98 percent as a decline in oil and copper prices weighed on the country’s resources sector.
Japan’s Nikkei 225 index erased gains and fell 0.69 percent as the Tokyo Stock Exchange resumed normal trading after its worst-ever outage brought the world’s third-largest equity market to a standstill.
Euro Stoxx 50 futures were up 0.06 percent, German DAX futures rose 0.03 percent, but FTSE futures were down by 1.02 percent.
Markets had been choppy early on Friday after a spate of data, including jobless claims and consumer spending, suggested that the plodding US economic recovery could be losing steam.
Futures for the tech-heavy Nasdaq fell 1.7 percent. The benchmark 10-year Treasury yield fell to 0.6545 percent.
China’s stock and bond markets, foreign exchange and commodity futures markets are closed from October 1-8 for the Golden Week holiday. South Korean and Hong Kong markets are also closed on Friday for holidays.
US markets kicked off the fourth quarter by closing higher on Thursday while investors tracked progress in negotiations for additional fiscal stimulus.
Global Markets Rise on Stimulus Hopes – but Avoid ‘Buy Everything’ Mindset
Global stock markets have been cheered on hopes of fresh fiscal stimulus in the U.S. imminently – but investors must avoid the ‘buy everything’ mindset, warns the CEO of one of the world’s largest independent financial advisory and fintech organisations.
The comments from Nigel Green, chief executive and founder of deVere Group, follows House Democrat leader Nancy Pelosi saying over the weekend that she was “optimistic” regarding a stimulus deal before the presidential election on 3 November.
In Asia, Hong Kong’s Hang Seng gained 0.5% and Japan’s Nikkei climbed 1.1%, South Korea’s Kospi advanced 0.22%, Australia rose on the day, with the S&P/ASX 200 up 0.85%.
Meanwhile, London’s FTSE rose 0.6%, Germany’s Dax rose 0.9% and the Europe-wide Stoxx 600 climbed 0.8%.
U.S. futures also pointed higher.
Mr Green notes: “The possibility of a fresh fiscal stimulus shot in the U.S. – the world’s largest economy – is acting as a catalyst in driving global stocks higher.
“Investors are moving now to buy stocks to bolster their portfolios ahead of the announcements in the coming days when prices will jump even higher – so they’re taking advantage of what they see as the current lower entry points.”
He continues: “Once again, we’re seeing that few things can fuel markets like a stimulus injection – or even the possibility of one.
“Clearly, investors are not wanting to miss the boat, but they must also avoid the ‘buy everything’ mindset for two reasons.
“First, the markets are now assuming that the new stimulus is a done deal – it is not. If negotiations collapse, the market correction could be significant.
“Second, not all shares are created equal and stock markets are heavily unbalanced at the moment. A handful of firms in a handful of sectors are bringing up entire indexes.
“An experienced fund manager will help investors seek those most likely to generate and build their wealth over the long-term.”
The deVere CEO concludes: “Investing over the long-term on stock markets remains, as ever, one of the best and proven ways to accumulate wealth.
“However, investors must remember not to be complacent when an upbeat mood takes over the markets.”
Again, Nigerian Stock Exchange Remains Unchanged as Investors Stay on Sideline
The Nigerian Stock Exchange Was Unchanged on Thursday as Investors Stay on Sideline
Social unrest amid economic uncertainty continues to dictate sentiment of the Nigerian Stock Exchange as the bourse remained unchanged for the second straight day on Thursday.
Investors traded 342.193 million shares worth N5.039 billion in 4,048 transactions during the trading hours of Thursday.
The market capitalisation of the Nigerian Stock Exchange settled at N14.815 trillion, the same value it closed on Wednesday.
Similarly, the Nigerian Stock Exchange Index remained unchanged at 28,344.04 index points as investors stay on the sideline to assess the ongoing youth protests in the country.
In terms of the volume traded, UBA led with 92.871 million shares valued at N613.559 million. This was followed by Zenith Bank with 67.233 million shares worth N1.349 billion. See the details below.
Top Traded Stocks on Thursday, October 15, 2020
Top Gainers on Thursday, October 15, 2020
Top Losers on Thursday, October 15, 2020
Nigerian Stock Exchange Closed Flat on Wednesday Despite Guinness, GTBank, Others Gaining
Stock Market Unchanged on Wednesday
The Nigerian Stock Exchange closed flat on Wednesday after gaining about N5 billion on Tuesday.
Investors traded 218.425 million shares valued at N3.139 billion in 3,896 transactions during the trading hours of Wednesday. Suggesting that investors are holding back to assess the potential of the bourse to sustain the ongoing momentum above the current level.
The Exchange rose above N15.100 trillion last week for the first time in 5 years shortly after the central bank reduced the nation’s monetary policy rate by 100 basis points to stimulate growth. However, economic uncertainties surrounding the projected third-quarter recession and the ongoing youth protest has started impacting business sentiment.
The Nigerian Stock Exchange market capitalisation of listed equities remained unchanged at N14.815 trillion while the Nigerian Stock Exchange index remained flat at 28,344.33 basis points.
Zenith Bank led top traded stocks by volume with 53.046 million shares valued at N1.061 billion. Followed by UBA’s 33.461 million shares worth N223.402 million. See the details below.
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