U.S. stock futures falling more than 200 points in the early hours
Wall Street stocks finished mostly higher overnight despite daily coronavirus cases continued to surge to record highs. The S&P 500 rose 0.8% and was just a few points below the record high it set in early-September. The technology-heavy Nasdaq Composite rose 2%. Meanwhile, the Dow Jones Industrial Average edged 0.1% after the news that New York would put restrictions on bars, restaurants, and gyms as COVID-19 infections rose in the state.
Today in Asia, equities closed lower nearly across Asia as the governments continued to reimpose restrictions to battle the pandemic. The official report showed that machinery orders in Japan fell in September. However, the Nikkei 225 bucked the negative trend and managed to add nearly 0.40% while other regional indexes were lower. Hong Kong’s Hang Seng index fell 0.4% and the Shanghai Composite index declined 0.3%. In Seoul, the Kospi gave up 0.3%.
In a sign that positive risk sentiment continued to wane, European stock markets opened in the negative territory on Thursday, with U.S. stock futures falling more than 200 points in the early hours. The pan-European Stoxx 600 fell 0.6% at the start of trading, with banks leading the losses. On the data front, preliminary figures showed the U.K. economy grew by a record of 15.5% in the third quarter, still slower than expected. The UK’s FTSE 100 shed 0.6% following the release.
Meanwhile, the dollar was mixed amid a softer risk tilt on Thursday. EURUSD bounced from the 20-DMA and reclaimed a bullish intraday basis in recent trading but failed to overcome the 1.18 local barrier. Once above this figure, the common currency could retarget the recent highs above 1.19. However, the upside potential looks limited at this stage. Later in the day, Powell’s speech and the US CPI report could affect short-term dynamics in the pair.