Shares were mostly lower in Asia on Wednesday after pandemic concerns
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Alice Blue - Market Talk_October 15, 2020

Shares were mostly lower in Asia on Wednesday after pandemic concerns

Shares in Asia were lower on Wednesday due to epidemic concerns after drawing a four-day win streak on Wall Street.

Rising coronavirus counts in many countries are increasing the urgency to develop vaccines and treatments and discourage investors in the process.

On Tuesday, independent monitors withheld enrollment in a trial of COVID-19 antiviral drug remediesvir plus an experimental antibody therapy being developed by Eli Lilly. The company said the study was prevented by “an abundance of caution”. The newspaper said after a revelation late Monday by Johnson & Johnson, stating that a late-stage study of a potential COVID-19 vaccine study was temporarily “due to unexplained illness in a study participant.”

Meanwhile, uncertainty about the prospects for more stimulus for the economy from Washington is hovering over the markets.

“As the US case moves north in October, the market is clearly still far more susceptible to the twists and turns of vaccine development and probably still needs another fiscal injection to plug the gap at the end of the year Is lacking, ”Jingi Pan’s IG said in a comment.

Japan’s Nikkei 225 gained 0.2% to 23,645.81 on the opening loss, while Hang Seng in Hong Kong rose 0.2% to 24,608.27. South Korea’s COSPI fell 0.7% to 2,386.54 and in Australia the S&P / ASX 200 slipped 0.2% to 6,185.30. The Shanghai Composite Index lost 0.4% to close at 3,346.53.

Bank of Korea opted to keep its benchmark interest rate unchanged.

Overnight, the S&P 500 lost 0.6% to 3,511.93, returning some of its gains from a day earlier.

The Dow Jones Industrial Average fell 0.6% to 28,679.81 and the Nasdaq Composite declined 0.1% to close at 11,863.90. The Russell 2000 index of small cap shares fell 0.7% to 1,636.85.

Stocks were mostly up this month. Already the major stock index has recovered its losses from the September market. But many forces are pushing and pulling markets together.

The International Monetary Fund, in its latest update, forecast a steep decline in international growth this year as the global economy struggles to recover from the epidemic-induced recession, its worst collapse in nearly a century.

The IMF said that on Tuesday it is expected that the global economy will shrink by 4.4% in 2020. This would be the worst annual decline since the Great Depression of 1930. The world economy shrunk by about 0.1% after the disastrous 2008 financial crisis.

The scale of disruptions in hard-hit economic sectors, particularly restaurants, retail stores, and airlines, suggests that without any available vaccines and effective drugs to combat the virus, many sectors of the economy “normally have any similarities.” To face a particularly difficult path. ” , The IMF said.

Meanwhile, the prospect of another heavy dose of stimulus for the US economy seems unlikely. Senate Leader Mitch McConnell said Tuesday that he is scheduling a vote on a scale-back GOP coronavirus relief bill for Oct. 19. Democrats filmed the GOP-drafted aid bill last month and recently negotiated a major deal with House Speaker Nancy Pelosi, D. -Cleaf., Fell this past weekend. In a letter to colleagues on Tuesday, Pelosi called the White House’s latest proposal inadequate and said significant changes were needed.

Nevertheless, several companies closed the earnings season on Tuesday with better-than-expected reports. JPMorgan Chase, Johnson & Johnson, Citigroup and BlackRock all reported stronger results than analysts for the summer.

Overall, however, Wall Street is expecting another sharp drop in third-quarter profits, about 21% for the S&P 500 earnings per share from a year earlier. But if it turns out to be correct, it will not be as bad for spring as about a 32% dip, according to FactSet.

In other trading Wednesday, the yield on the 10-year Treasury was stable at 0.73%, from 0.72% late Tuesday.

Benchmark US crude fell 17 cents to $ 40.03 a barrel in electronic trading on the New York Mercantile Exchange. It rose 77 cents to $ 40.20 a barrel on Tuesday. Internationally, Crude Crude also gave a raise of 17 cents to $ 17.29.

The US dollar weakened from 105.47 yen to 105.39 Japanese yen. The euro slipped from $ 1.1748 to $ 1.1743

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About Dwipen Gogoi

Dwipen Gogoi, MBA (IB and IT) and PGDFT from Pune. (Technical Analyst of AliceBlue) I am a You Tuber, Blogger and doing Technical Analysis last 10 years in Stock, Commodity and Forex Market. i am creating various trading strategies for day traders, swing traders, scalp traders.

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