[ad_1]
Stock Market Today LIVE Updates: Sensex rises above 770 points, Nifty crosses 9,200 mark; Rupee opens high
New York: Asian shares appeared to pull out of a month-high on Tuesday as warnings of a deep recession dampened investor optimism that the slowdown in the virus crown could allow companies to reopen.
E-Mini futures for the S&P 500 fell from the close bell and fell 0.26 percent, while Nikkei futures pointed to an initial loss of around five points, challenging broad gains in US stocks. overnight.
The withdrawal of the riskiest assets followed the International Monetary Fund’s prediction on Tuesday that the global economy could shrink by 3 percent in 2020 due to the virus outbreak, in the worst recession since the Great Depression of the 1930s.
Even estimates for a partial recovery next year are clouded by “extreme uncertainty” and the result could be much worse, depending on the course of the pandemic, the fund warned.
Some analysts agreed and advised caution.
“The current market optimism may be premature because the global economy is in a deep recession,” said Kim Mundy, analyst at the Commonwealth Bank of Australia. “We expect the world economy to contract 2.8 percent in 2020, much more than during the great financial crisis.”
Asian stocks had risen to their highest level in a month on Monday, buoyed by Chinese trade data that showed that exports did not decline as much as feared in March, despite analysts warning the outlook for the second economy largest in the world remained bleak.
In energy markets, concern about a global recession led crude prices to drop more than 10 percent to $ 20 a barrel overnight, as investors doubted that a record cut in world output could offset a sharp drop in demand as the economy stagnates.
At 2300 GMT, US crude oil CLc1 futures had recovered a touch and were up 3.1 percent to $ 20.74 a barrel, but far from a January high of $ 63.27.
Representative image. Reuters
Healthy demand for less risky investments and a softer dollar kept gold prices near a 7-1 / 2-year peak. Gold spot prices held steady at $ 1,728.44 an ounce, after peaking at $ 1,738.05 previously, a level not seen since late 2012.
Still, some investors cheered up the news that the coronavirus outbreak may be near a peak, as European countries like Austria and Spain began to relax the blocking restrictions.
In the United States, which has suffered the highest number of deaths from the virus, the governors of seven states, including New York, said they were preparing plans to gradually restart the economy.
Sparks of investor optimism, coupled with the United States Federal Reserve’s new massive loan program to support the economy, covered the United States. dollar, another traditional safe-haven asset, in a minimum of two weeks.
Against a basket of six currencies, the United States. The dollar index decreased 0.5 percent to 98.86. That helped the euro hold on to past gains at $ 1.0984, while the dollar remained soft against the Japanese yen at 107.17.
US 10-Year Yields USA They changed little, to 0.750 percent, as investors prepared for Wednesday’s release of US retail sales data on Wednesday. USA
In a sign of the cost of the pandemic in the economy, two major US banks. The US, JPMorgan Chase & Co (JPM.N) and Wells Fargo & Co (WFC.N), reported a drop in first quarter earnings on Tuesday as they both reserved billions. of dollars to cover possible credit losses.
James Bullard, chairman of the St. Louis Federal Reserve, calculated Tuesday that the economic shutdown due to the coronavirus pandemic is costing the United States about $ 25 billion a day in lost production and cannot be sustained indefinitely. But to reopen, he said the country needs risk management strategies and widespread testing.
Firstpost is now on WhatsApp. For the latest analysis, comments and news updates, sign up for our WhatsApp services. Just go to Firstpost.com/Whatsapp and hit the Subscribe button.
-> Special expiration on Thursday on 10 November 7
Diwali big discount early closing
Last chance to get Moneycontrol Pro for one year @ Rs. 289 / – alone
Coupon code: DIWALI.
->
Find the latest and future technology devices online at Tech2 Gadgets. Get tech news, reviews, and gadget ratings. Popular gadgets including specs, features, pricing, laptop, tablet and mobile device comparison.
[ad_2]
