· Wall Street snaps two-day slump on lift from tech titans
U.S. stocks ended higher on Monday as increases in large tech and internet companies and oil price gains outweighed concerns about the latest U.S.-China tensions and downbeat sentiment from the annual meeting of Warren Buffett’s Berkshire Hathaway.
The Dow Jones Industrial Average .DJI rose 26.07 points, or 0.11%, to 23,749.76, the S&P 500 .SPX gained 12.03 points, or 0.42%, to 2,842.74 and the Nasdaq Composite .IXIC added 105.77 points, or 1.23%, to 8,710.72.
Major U.S. indexes opened lower but moved higher throughout the afternoon to snap two-day losing streaks.
Stocks have rebounded sharply since late March from the coronavirus-fueled sell-off, helped by massive monetary and fiscal stimulus. Investors are now watching efforts by a number of states trying to spark their economies by easing restrictions put in place to fight the outbreak.
On Monday, New York Governor Andrew Cuomo outlined a phased reopening of business in the state hardest hit by the COVID-19 pandemic. California Governor Gavin Newsom said that retail businesses in the state may begin reopening as early as this week.
· Stock futures rise slightly in overnight trading as investors focus on reopening of economy
Stock futures rose slightly in overnight trading on Monday as investors remained focused on the reopening of the U.S. economy.
Futures on the Dow Jones Industrial Average climbed about 50 points. The S&P 500 and Nasdaq futures both rose just slightly.
Investors weighed fears of a second wave of coronavirus cases against efforts to reopen businesses and loosen restrictions. California governor Gavin Newsom said Monday some of the state’s retailers will be allowed to offer curb-side pickup starting Friday.
· European markets close lower as US-China tensions rise over coronavirus
European stocks closed lower on Monday amid rising U.S.-China tensions around the source of the coronavirus outbreak.
The pan-European Stoxx 600 provisionally closed down 2.5%. Oil and gas stocks slipped almost 5% to lead losses as all sectors and major bourses slid into negative territory.
Activity in the euro zone’s manufacturing sector contracted at a record rate in April with Covid-19 related measures impacting heavily on demand and production, a survey showed on Monday.
IHS Markit’s Purchasing Managers’ Index (PMI) for manufacturing fell to 33.4 in April from 44.5 in March, with anything under 50 representing a contraction.
European stocks are following the negative trend set by their Asian counterparts Monday where markets traded lower in reaction to rising tensions between Washington and Beijing.
· Hong Kong falls more than 4% as US-China tensions weigh on investor sentiment
Stocks in Asia fell on Monday, as reigniting tensions between the U.S. and China weighed on investor sentiment, with major regional markets closed for holidays.
Hong Kong’s Hang Seng index dropped 4.18% to close at 23,613.80, with shares of Chinese tech juggernaut Tencent falling 4.08%.
The moves regionally came as tensions rise between Washington and Beijing. U.S. President Donald Trump said Sunday that he believed that a “mistake” in China was the cause of the spreading coronavirus pandemic, though he did not present any evidence for the claim. The nation’s top spy agency said Thursday that it had determined that the virus was not man made but was still investigating whether it was caused by “an accident at a laboratory in Wuhan.”
The Associated Press additionally reported that U.S. intelligence documents accused China of concealing the severity of the coronavirus outbreak to hoard medical supplies.
Stocks in Australia edge higher ahead of central bank decision; major markets in Asia closed
Stocks in Australia rose in Tuesday morning trade, with major markets in Asia closed for holidays.
The S&P/ASX 200 rose 0.69% in early trade, with shares of major banks such as Commonwealth Bank of Australia and Westpac all advancing.
The Reserve Bank of Australia is expected to announce its interest rate decision on Tuesday, set to be out around 12:30 p.m. HK/SIN.
On the economic data front, Indonesia’s first-quarter GDP print is expected to be out at around 12:00 p.m. on Tuesday.
Investors will continue to watch for developments on both the global coronavirus pandemic as well as rising U.S.-China tensions, with Hong Kong’s Hang Seng index closing more than 4% lower on Monday amid the uncertainty.
Markets in China, Japan and South Korea are closed on Tuesday for holidays.
Reference: CNBC, Reuters
Thai
Eng