Coronavirus News Asia

Investors look past glum EU data

(ATF) Hong Kong: Investor sentiment has calmed after oil prices extended gains but gloomy European economic data and details from a European Council economic response to the coronavirus pandemic gave markets reason to pause.

“There have been spectacular misses on European, French and German April PMIs this morning which led several European indexes to turn negative and pushed the Euro lower,” Olivier Konzeoue, FX Sales Trader at Saxo Markets, said.

IHS Markit’s Flash Composite Purchasing Managers’ Index (PMI) for Eurozone fell to 13.5 from 29.7 in March, the lowest since July 1998. This was preceded by German PMI – 17.1 in April (35.0 in March) and French PMI – 11.2 in April (28.9 in March), both well below market expectations.

The Stoxx Europe 600 edged up 0.3% and S&P futures were up 0.2% after the MSCI Asia Pacific index rose 1.1% on the back of an oil-fuelled recovery. The WTI June contract added 13.7% and Brent futures added 5%.

“The rather muted reaction relative to the amplitude of the misses proves the lack of surprise for markets, which are almost immune to data at the moment. The focus is instead going to be on the various exit strategies as well as the stimulus initiatives put in place by governments and central banks to counter the negative effect of coronavirus. Risk sentiment will be driven by the Eurogroup video-conference meeting today where EU leaders will try and agree on a fiscal lifeline for the Eurozone economy,” Saxo Market’s Konzeoue said.

Later on Thursday, the United States is expected to pass a $484-billion coronavirus relief bill, bringing the total of funds approved for the crisis to nearly $3 trillion.

Earlier, Japan’s Nikkei 225 index added 1.52%, while the Hong Kong benchmark, the Hang Seng index, advanced 0.35% and the Australian S&P ASX 200 ended flat.

But China’s CSI 300 benchmark eased 0.25% after US regulators repeated a warning to investors about investing in Chinese companies listed in the US.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *