Stocks traded mixed on Wednesday amid uncertainty over the timing of a fresh U.S. stimulus program. The dollar extended losses, while gold soared above $1,850 an ounce.
Shares climbed in China and Hong Kong, while those in Japan edged lower. Australian shares underperformed as the country recorded its worst day of virus cases. Futures on the S&P 500 ticked up after U.S. equities finished well off Tuesday’s session highs, with Senator Mitch McConnell casting doubt on reaching a fresh rescue bill before some current benefits expire. Tech stocks led the Nasdaq Composite lower. Silver climbed as precious metals jumped.
As earnings continue to roll in, investors are taking stock of a surge in global equities that left the MSCI gauge of developed and emerging-market shares at the highest since February. After the success of a European rescue package this week, focus turns to negotiations in the U.S. between Republicans and Democrats on legislation to prop up the hobbled economy. President Donald Trump warned the coronavirus crisis will probably worsen before improving.
“I’m more concerned going into the August, September period: what’s going to then be the next catalyst to take the broader market higher,” Andrew Sheets, a cross-asset strategist at Morgan Stanley, said on Bloomberg TV. It’s going to be “a tougher period for stocks,” he said.
Elsewhere, oil handed back some gains in Asia after a report pointed to a strong rise in U.S. crude stockpiles.
Here are some key events coming up:
- Quarterly earnings gather steam, with reports due from Microsoft, Blackstone Group, Roche, Intel, Unilever, Canadian Pacific, Tokyo Steel, Daimler, Hyundai and Mattel.
- The EIA crude oil inventory report is due Wednesday.
- U.S. weekly jobless claims come on Thursday.
These are the main moves in markets:
Stocks
- Futures on the S&P 500 Index rose 0.2% as of 5:18 a.m. in London. The gauge rose 0.2% Tuesday.
- Japan’s Topix index dipped 0.3%.
- Hong Kong’s Hang Seng gained 0.1%.
- Shanghai Composite advanced 1.2%.
- South Korea’s Kospi index rose 0.1%.
- Australia’s S&P/ASX 200 Index fell 1.3%.
- Euro Stoxx 50 futures were little changed.
Currencies
- The Bloomberg Dollar Spot Index declined 0.2%.
- The yen was little changed at 106.85 per dollar.
- The offshore yuan was flat at 6.9695 per dollar.
- The euro rose 0.1% to $1.1541.
Bonds
- The yield on 10-year Treasuries remained at 0.60%.
- Australia’s 10-year yield rose one basis point to 0.87%.
Commodities
- West Texas Intermediate crude slid 0.6% to $41.68 a barrel.
- Gold surged 0.8% to $1,856.66 an ounce.
Source: Bloomberg