Global Stocks Mixed on Monday 09/27 05:25
Global shares were mixed Monday, as fears of further waves of coronavirus
outbreaks clouded the economic outlook for the region, tempering gains.
TOKYO (AP) -- Global shares were mixed Monday, as fears of further waves of
coronavirus outbreaks clouded the economic outlook for the region, tempering
France's CAC 40 added 0.6% to 6,678.66 in early trading, while Germany's DAX
gained nearly 0.9% to 15,667.40. Britain's FTSE 100 edged up 0.3% to 7,072.39.
U.S. shares were set for gains, with the future for the Dow industrials up 0.5%
at 34,840.00. The S&P 500 future rose 0.4% to 4,462.25.
Japan's benchmark Nikkei 225 was little changed, inching down less than 0.1%
to finish at 30,240.06 after zigzagging earlier in the day. Australia's S&P/ASX
200 gained 0.6% to 7,384.20. South Korea's Kospi added 0.3% to 3,133.64. Hong
Kong's Hang Seng inched up 0.1% to 24,208.78, while the Shanghai Composite shed
0.8% to 3,582.83.
Japan's ruling party holds an election later this week to choose a leader,
who is likely to succeed Yoshihide Suga as prime minister after just one year
in office. All the candidates are certain to stick to the nation's pro-U.S.
policies, despite some nuances in their views.
They also are all promising to boost government spending to try to catalyze
growth in the world's third largest economy.
Analysts also say Japan's central bank "tankan" economic survey for the
third quarter, due out Friday, likely will show a deterioration in business
conditions because of various disruptions to supply chains and renewed
outbreaks of COVID-19 in many regions.
Although some parts of the world have lifted COVID-19 restrictions and are
gradually returning to "normal" life, worries remain in Asia about further
waves of infections because vaccine rollouts have been slower than the West in
In Singapore, further COVID-19 restrictions kicked off in an attempt to curb
the virus' spread, as daily new cases have topped the city-state's peak reached
in April 2020.
""Overall, the manufacturing sector may remain resilient as seen from
previous phases of restrictions, but the services sector may come under
pressure. That said, previous business adjustments and softer tightening
compared to past restriction phases may aid to reduce some impact," said Yeap
Jun Rong, market strategist at IG in Singapore.
U.S. markets have had a rough September and investors could be in for more
volatility given various concerns, including COVID-19 and its lingering impact
on the economy, along with a slow recovery for the employment market.
Worries over troubled Chinese real estate developer Evergrande are still
weighing on global markets. Some Chinese banks on Friday disclosed what they
are owed by Evergrande, seeking to dispel fears of financial turmoil as it
struggles under $310 billion in debt.
In energy trading, U.S. benchmark crude added 91 cents to $74.89 a barrel in
electronic trading on the New York Mercantile Exchange. It rose 68 cents to
$73.98 per barrel on Friday. Brent crude, the international standard, gained 94
cents to $79.03 a barrel.
In currency trading, the U.S. dollar inched down to 110.68 Japanese yen from
110.72 yen. The euro cost $1.1710, down from $1.1714.