Eq­ui­ties rally stalls on lin­ger­ing eco­nomic un­cer­tainty

The Pak Banker - - FRONT PAGE - HONG KONG -AFP

Stock mar­kets were mixed Wed­nes­day as a two­day rally ran out of steam on profit-taking, with in­vestor con­fi­dence also tem­pered by wor­ries about the longterm dam­age coronaviru­s lock­downs are hav­ing on the global econ­omy.

Eq­ui­ties have en­joyed a broad ad­vance for sev­eral weeks as virus in­fec­tion and death rates slow in badly hit countries, al­low­ing gov­ern­ments to lift strict stay-ath­ome mea­sures that have ham­mered busi­nesses.

But, while there is a gen­eral feel­ing the worst is past, sim­mer­ing China-US ten­sions and a slew of data high­light­ing the deep wounds be­ing in­flicted on economies con­tin­ues to trou­ble trad­ing floors.

The World Bank warned the cri­sis could leave about 60 mil­lion in ex­treme poverty, adding that it saw the global econ­omy con­tract­ing five per­cent this year.

Trea­sury Sec­re­tary Steven Mnuchin, mean­while, said the US econ­omy could en­dure "per­ma­nent dam­age" if lock­downs to keep COVID-19 from spread­ing drag on.

Mon­day's news of promis­ing re­sults from early tri­als of a pos­si­ble vac­cine fired a surge across mar­kets.

But that has been tem­pered by a report in Stat News-which fo­cuses on health and medicine-that was scep­ti­cal of the an­nounce­ment, say­ing it "re­vealed very lit­tle in­for­ma­tion" and no data about the treat­ment.

"We are be­ing fairly cau­tious," Shawn

Matthews of Hondius Cap­i­tal Man­age­ment told Bloomberg TV. "If you look at the econ­omy, it feels like it's the sum­mer of hope right now-where ev­ery­one is hop­ing it's go­ing to turn around."

Tokyo ended 0.8 per­cent up, Hong Kong edged 0.1 per­cent higher, Syd­ney rose 0.2 per­cent and Mumbai added 0.9 per­cent, while there were also ad­vances in Seoul, Taipei, Manila and Bangkok.

But Shang­hai dipped 0.5 per­cent, Singapore shed 0.9 per­cent and Jakarta dropped 0.3 per­cent. London, Paris and Frank­furt were all in the red in morn­ing trad­ing.

In­vestors were keep­ing tabs on Wash­ing­ton, where House Democrats have passed a $3 tril­lion aid bill, to add to a sim­i­lar stim­u­lus al­ready agreed.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.