Asian shares under pressure, gold rallies at US stimulus stale by Reuters

© Reuters. FILE PHOTO: Security guards wearing face masks in front of the Bull Financial Bull statue at The Bund in Shanghai

By Suzanne Barlin

NEW YORK (Reuters) – As an impasse in the US economic stimulus talks backed on Wednesday, Asian equities pushed global stocks lower and sent investors to safer-assets such as gold, which reached near record highs.

US President Donald Trump said on Tuesday that he did not support everything in the $ 1 trillion Senate Republican coronavirus relief proposal the day after it was unveiled by Majority Leader Mitch McConnell, although he indicated that negotiations were continuing.

“We have some negative gains from the US and European stock markets,” said Michael McCarthy, chief market strategist at CMC Markets in Sydney.

Hong Kong’s Hang Seng Index (futures) <.hsic1> Were down 0.14%. The Australian S&P / ASX 200 () was flat while {{178 | Ni () of Japan dipped 0.5%.

US data released on Tuesday showed consumer confidence in July as coronovirus infections flared across the country.

Along with stimulus concerns, the data weighed Wall Street, where the Dow Jones Industrial Average () fell 0.77%, the S&P 500 () fell 0.65%, and the Nasdaq Composite () fell 1.27%.

In a research note on Wednesday, NAB economist Tapas Strickland wrote, “The only positive news is for those holding gold and those in New Zealand where the number of jobs increased in June.”

Growing coronovirus outbreaks in Florida and Texas cautions. Florida reported 191 deaths in a 24-hour period ending on Tuesday, a day-long hike for America’s third-most populous state and a prized destination for beachgoers and retirees.

Texas, the second-most populous state, added more than 6,000 new cases on Monday, according to a Reuters tally, bringing its total to 401,477.

The rise in US deaths and infections has aroused early hopes that the country was in the worst past of an economic crisis that reduced businesses and forced millions of Americans out of work.

Gold has more than $ 125 an ounce in less than a week as investors said the Federal Reserve would confirm its super-aggressive policies at its two-day meeting ending on Wednesday, and perhaps in the long run for higher inflation Indicates a tolerance. Bullion pulled back from an all-time high that had already arrived.

Gold reached a record high of $ 1,980.57 an ounce compared to earlier, but prices retreated 3.7% later in the session as investors posted gains and the dollar returned.

() Against a basket of currencies rose 0.18% to 93.71, the lowest since June 2018, after falling to 93.47 on Monday.

“I think the market is just taking a standstill, it’s largely tireless dollar sales,” said Vasily Serebrikov, an FX strategist at UBS in New York.

In commodity markets, oil prices fell, as US lawmakers prepared to wean off stimulus packages, and investors worried about an increase in coronavirus cases around the world.

Brent crude () was down 0.32% at $ 43.27 per barrel while US crude () remained unchanged at $ 41.04 per barrel.

Leave a Reply

Your email address will not be published.