Reuters. File photo: A TV reporter stands in front of a big screen on the Tokyo Stock Exchange after the market opened in Tokyo.By Paul Lina Duran and Jessica Dinapoli
SYDNEY / NEW YORK (Reuters) – Asian stocks tumbled on Tuesday as investors changed the nature of the risk in the US election and passed Washington’s deadline to pass an economic stimulus bill, while Europe recorded record daily coronavirus infections.
MSCI’s broad index of Asia-Pacific stocks outside of Japan was down 0.18% after US stocks fell below 1% in the previous session while markets in Australia and Japan declined.
European futures were also weak, with European futures trading 0.68% lower and London futures trading 0.45% lower.
Investors said the economic impact of the US election and the rise in coronavirus cases in the United States and Europe due to low economic news in the region is boosting sentiment in Asian markets.
The gauge of MSCI stocks worldwide was 0.11% lower.
Chris Westen, head of research at Melbourne brokerage Paperstone, said there were concerns about the US stimulus package, possibly due to the recent downturn due to the situation ahead of the November 3 presidential election.
“Do you really want to keep those ambiguities in mind in the event of instability?” Said West. “We’re going to the Wild West area where it becomes more whippy.”
Controversial U.S. Warnings were also given to investors globally due to growing concerns about the risk of election results.
Keith Crawling, co-CIO of American Century, said the U.S. Such an event is very likely in global markets until an acceptable resolution is reached.
In Hong Kong it was 0.26% lower, 0.55% slippery.
Philippine stocks saw a trend, rising 1.7% to their highest level in two months after the country lifted some restrictions, including a short-term curfew in Manila.
For companies including Netflix Inc. (Nasdaq 🙂 and Tesla (Nasdaq 🙂 Inc., investors are awaiting key earnings results over the weekend.
They were also waiting to see if the final debate between US President Donald Trump and his Democratic challenger Joe Biden on Thursday would change the course of the election.
The number of new COVID-19 cases in the United States rose 13% to more than 393,000 last week, the last time it reached a peak during the summer, according to a Reuters analysis.
, The S&P 500 and every Monday fell below 1%, and European stocks also closed lower following the decline, raising concerns among investors in the COVID-19 case. Parts of the UK were placed in lockdown and France imposed a curfew.
Chad Pedovitz, CIO of Talaria Capital, said the revenue period should drive the market in the coming days. “There’s a bit of caution on economically sensitive stocks, but there’s also enthusiasm on companies that are probably somewhat immune. [to the health crisis] And is able to grow. “
Unlike equity markets, currency markets were less pessimistic about the prospect of stimulus success with a slightly lower turn of the dollar to a safe place amid expectations that US legislators could still agree on a package of monetary stimulus at 11 p.m.
“Given the strong blue wave market expectations in the U.S. election, this stimulus is not likely to have a physical impact on overall sentiment over time but nevertheless, it is causing short-term downturns.” Citigroup (NYSE 🙂 said.
“In the near term, the bullish fast money situation appears to be growing rapidly and there may be a sensitivity to open it before the U.S. election.”
Greenback moves, however, were modest with a 0.039% low on Tuesday. The dollar rose 0.14% to 105.52 against the yen and the euro rose 0.09% to 17.1776.
The Australian dollar fell 0.4% to 0.7043 against the greenback, hurting expectations that the central bank would soon cut rates and expand its large bond-buying campaign to lower borrowing costs.
U.S. oil markets West Texas Intermediate (WTI) crude futures fell 0.6% to .5 40.57 a barrel, while futures fell 0.8% to 42 42.26.
