Global Shares Fall Back 10/30 05:41
Global stocks and U.S. futures sank Friday as investors looked ahead to next
week's American presidential election and weighed the chances of economic aid
from Washington and Europe.
BEIJING (AP) -- Global stocks and U.S. futures sank Friday as investors
looked ahead to next week's American presidential election and weighed the
chances of economic aid from Washington and Europe.
London and Frankfurt opened lower, while Tokyo, Hong Kong and Seoul all
declined. Shanghai closed lower after swinging between gains and losses.
Investors have been dismayed by a lack of progress in talks between the
White House and Congress on new U.S. stimulus. Hopes for action ahead of
Tuesday's election and potential wrangling over the outcome have diminished.
"The market is still in search of that elusive stimulus lifeline in this
mishmash of pre-election de-risking," Stephen Innes of Axi said in a report.
In early trading, the FTSE 100 in London lost 0.7% to 5,542.62 and
Frankfurt's DAX was 1.1% lower at 11,470.85. The CAC 40 in France retreated
0.9% to 4,528.95.
On Wall Street, futures for the S&P 500 index and the Dow Jones Industrial
Average were down 1.8%.
In Asia, the Nikkei 225 in Tokyo fell 1.5% to 22,977.13 and the Hang Seng in
Hong Kong lost 2.1% to 24,073.72.
The Shanghai Composite Index sank 1.5% to 3,224.53. It swung between gains
and losses after the ruling Communist Party said Thursday it wants to make a
China a self-reliant "technology power" amid a feud with Washington that is
hampering access to high-tech components.
The Kospi in Seoul retreated 2.6% to 2,267.15 and Sydney's S&P-ASX 200 was
0.6% lower at 5,927.60.
India's Sensex lost 0.9% to 39,404.79. New Zealand, Singapore and Bangkok
On Thursday, the S&P 500 rose 1.2%, helped by a rebound for tech stocks as
the market steadied after its worst drop in four months.
The index fell 3.5% on Wednesday on worries an upsurge in coronavirus
infections could drag down the economy again.
Traders welcomed data that showed the number of U.S. workers applying for
unemployment benefits eased last week to 751,000. That was down from the
previous week's 791,000 and better than economists expected.
The Dow Jones Industrial Average gained 0.5% while the tech-heavy Nasdaq
composite climbed 1.6%.
In Washington, House Speaker Nancy Pelosi sent a letter to Treasury
Secretary Steven Mnuchin listing topics in their stimulus negotiations on which
she is awaiting a reply. They include benefits for laid-off workers and
measures on coronavirus testing.
Also Thursday, the head of the European Central Bank said there's "little
doubt" it will deliver more stimulus in December.
In China, the ruling party said Thursday its next five-year development plan
starting next year will emphasize self-reliance in technology.
The party gave no details but aid to technology developers could help
Chinese makers of smartphones and other products that face possible difficulty
in obtaining U.S. components after the Trump administration imposed export
restrictions in a fight over security, spying and Beijing's development plans.
Coronavirus case numbers are rising in the United States and Europe,
increasing worries that restrictions on business might be re-imposed. Retailers
worry customers might stay away even if sweeping lockdowns don't come back.
In energy markets, benchmark U.S. crude lost 31 cents to $35.86 per barrel
in electronic trading on the New York Mercantile Exchange. The contract fell
$1.22 on Thursday to $36.17. Brent crude, the price standard for international
oils, declined 39 cents to $37.87 per barrel in London. It lost $1.47 the
previous session to $37.65.
The dollar declined to 104.33 yen from Thursday's 104.67 yen. The euro
advanced to $1.1681 from $1.1671.