International markets made small gains, while U.S. stock futures declined, as investors weighed signs of economic recovery against risks stemming from U.S.-China tensions, the coronavirus and social unrest in the U.S.
Futures tied to the S&P 500 slipped 0.3%, suggesting the benchmark index will open lower. The Stoxx Europe 600 rose 0.9%, led by shares in auto and auto-part manufacturers, after a public holiday in much of the continent Monday.
In Asia, Hong Kong’s Hang Seng Index and stock benchmarks in Japan and South Korea rose between 0.5% and 1.5%. China’s Shanghai Composite added 0.2%, and Australia’s S&P/ASX 200 rose 0.3%.
“The equity market has been pricing in a smooth recovery of the economy, although it might be too optimistic while overlooking some potential risks,” said Anthony Chan, chief Asia investment strategist at Union Bancaire Privée.
Among other risks, Mr. Chan cited the possibility of fresh coronavirus outbreaks, bringing new lockdowns, and a fragile geopolitical backdrop. He said the Trump administration could take more-severe measures related to Hong Kong ahead of the U.S. presidential election in November.
The U.S. dollar has slid in recent sessions, and riskier currencies such as the Mexican peso have strengthened, on optimism about economic recovery.
On Tuesday in Hong Kong, the WSJ Dollar Index, which measures the U.S. currency against 16 others, was fractionally stronger at 92.01. It peaked above 97 in March.
U.S. indexes rose Monday as investors embraced signs that global factory activity was on a path toward recovery and largely shrugged off violent protests in U.S. cities.
In bond markets, the yield on the 10-year U.S. Treasury note eased to 0.657%, down from 0.662% on Monday.
Brent crude, the global oil benchmark, gained 1.2% to $38.78 a barrel.
An alliance of oil-producing nations led by Saudi Arabia and Russia is close to a deal that would extend their collective production cuts through Sept. 1.
Among the risks investors may be overlooking, according to Union Bancaire Privée’s Anthony Chan, is the possibility of Trump administration measures related to Hong Kong.
Photo: jerome favre/ShutterstockWrite to Xie Yu at Yu.Xie@wsj.com and Joe Wallace at Joe.Wallace@wsj.com
Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
"Market" - Google News
June 02, 2020 at 02:57PM
https://ift.tt/3cr2MHG
Global Markets Edge Higher as U.S. Futures Slip - The Wall Street Journal
"Market" - Google News
https://ift.tt/2Yge9gs
https://ift.tt/2Wls1p6
/cloudfront-us-east-1.images.arcpublishing.com/bostonglobe/VNG7YMZTRWJ5WBFTJ5NVETPCQI.jpg)
No comments:
Post a Comment