Markets continue to monitor post-Brexit trade deal negotiations and the latest coronavirus developments
Wall Street stocks mostly fell on Monday, extending the recent pullback from all-time highs. The S&P 500 fell 0.4%, marking the fourth straight decline for the first time in three months. Meanwhile, technology stocks bucked the trend, sending the tech-heavy Nasdaq Composite 0.5% higher while the Dow Jones Industrial Average dropped 0.6%. the initial rally faded as surging coronavirus counts weighted investor sentiment again.
Today in Asia, equities fell across the board as fresh economic data out of China failed to impress market players as retail sales, industrial output, and investments in factory equipment recovered in line with expectations in November. As such, the Shanghai Composite index declined 0.06%, Hong Kong’s Hang Seng lost 0.6% while Australia’s S&P/ASX 200 shed 0.3%. Japan’s Nikkei 225 gave up 0.17% after Prime Minister Yoshihide Suga announced a suspension of a travel promotion program that has triggered a resurgence of coronavirus outbreaks.
European stocks opened lower amid the downbeat sentiment on lockdown concerns for New York. Investors also continue to cautiously monitor post-Brexit trade deal negotiations and the latest coronavirus developments. According to the latest reports, Ursula von der Leyen, president of the European Commission, said there was some movement over sticking points in negotiations. The pan-European Stoxx 600 hovered around the flatline in early trade.
Elsewhere, the dollar turned marginally positive early in Europe on Tuesday as risk sentiment continued to deteriorate further. EURUSD was rejected from the 1.2160 area earlier in the day and turned flat while holding above the 1.2100 figure. GBPUSD came across local resistance represented by the 20-DMA and has settled around 1.3300 since then, uninspired by the report that showed the UK’s official jobless rate rose to 4.9% in October vs. the previous 4.8% and 5.1% expected. The immediate support now arrives around 1.3280.
