World Markets Mixed on Tuesday 01/26 06:08
Shares opened higher in Europe on Tuesday after a broad retreat in Asia
driven by renewed worries that troubles with COVID vaccine rollouts and the
spread of new variants of coronavirus might delay a recovery from the pandemic.
BANGKOK (AP) -- Shares opened higher in Europe on Tuesday after a broad
retreat in Asia driven by renewed worries that troubles with COVID vaccine
rollouts and the spread of new variants of coronavirus might delay a recovery
from the pandemic.
Germany's DAX surged 0.7% to 13,738.24 and the CAC 40 in Paris gained 0.4%
to 5,493.14. The FTSE 100 in Britain picked up 0.5% to 6,674.87. U.S. markets
looked set for a downbeat start, with the future contract for the S&P 500 down
0.3% while that for the Dow industrials lost 0.2%.
Traders are keeping a wary eye on rising coronavirus infections in various
countries and a bumpy rollout of vaccinations in the U.S. The spread of
variants that are thought to be more easily transmissible and might be less
effectively targeted by existing vaccines is adding to alarm.
Vaccine maker Moderna said Monday that it will study whether a booster shot
would be needed to protect against variants of the coronavirus, "out of an
abundance of caution."
"Nowadays the market mood is set by either the hopes that the COVID vaccine
would mark the end of the biggest economic downturn of our lifetime, or the
stimulus hopes to keep our heads above water. Yesterday, both hopes got
smashed," Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, said in a
The Hang Seng in Hong Kong gave up 2.6% to 29,391.26. Japan's Nikkei 225
index declined 1% to 28,546.18, while the Shanghai Composite index dropped 1.5%
to 3,569.43. South Korea's Kospi lost 2.1% to 3,140.31. Shares also fell in
Markets in Australia and India were closed for holidays.
Stocks swerved to a mixed finish on Wall Street on Monday, ahead of a deluge
of corporate earnings reports scheduled to arrive this week.
The S&P 500 rose 0.4% to 3,855.36 while the The Dow Jones Industrial Average
dipped 0.1% to 30,960.00. The Nasdaq composite, which is packed with tech
stocks, rose 0.7% to 13,635.99 and another record.
The Russell 2000 index of smaller stocks fell 0.3%, to 2,163.27. The yield
on the 10-year Treasury sank to 1.03% from 1.07% late Friday.
More than 100 companies in the S&P 500 are scheduled to tell investors this
week how they fared during the last three months of 2020. They include American
Express, Johnson & Johnson, 3M, AT&T and Tesla.
As a whole, analysts expect S&P 500 companies to say their fourth-quarter
profit fell 5% from a year earlier. That's a milder drop than the 9.4% they
were forecasting earlier this month, according to FactSet.
President Joe Biden has proposed a $1.9 trillion plan to send $1,400 to most
Americans and deliver other support for the economy. But his party holds only
the slimmest possible majority in the Senate, making approval uncertain.
Several Republicans have already voiced opposition to parts of the plan.
The coronavirus pandemic is also worsening and doing more damage by the day.
A UN agency said Monday that four times as many jobs were lost last year as in
2009, during the global financial crisis.
The Federal Reserve will begin a two-day meeting on interest-rate policy
Tuesday, and the wide expectation is for it to keep the accelerator floored on
its stimulus for the economy and markets. It has said it plans to keep interest
rates low even if inflation rises above its 2% target.
In other Tuesday trading, U.S. benchmark crude oil lost 23 cents to $52.54
per barrel in electronic trading on the New York Mercantile Exchange. It gained
50 cents to $52.77 per barrel on Monday.
Brent crude, the international standard, shed 24 cents to $55.44 per barrel.
The U.S. dollar strengthened to 103.80 Japanese yen from 103.76 yen late
Monday. The euro dropped to $1.2130 from $1.2141.
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