Global Shares Fall on Thursday 09/24 05:51
Global shares were lower Thursday as caution set in after a retreat on Wall
Street driven by a decline in technology shares.
(AP) -- Global shares were lower Thursday as caution set in after a retreat
on Wall Street driven by a decline in technology shares.
France's CAC 40 fell nearly 0.7% in early trading to 4,770.81. Germany's DAX
dipped 0.5% to 12,585.12. Britain's FTSE 100 shed 0.7% to 5,857.35. U.S. shares
looked set to drift lower, with Dow futures falling 0.2% to 26,633. S&P 500
futures slipped 0.2% to 3,224.88.
Market players are feeling less optimistic about action from the U.S.
Federal Reserve and Congress to help the U.S. economy amid the distractions of
the presidential election and the battle over the Supreme Court seat left
vacant by the death of Justice Ruth Bader Ginsburg.
Risks of a broader sell-off of technology shares remain after a long due
correction, said Hayaki Narita at Mizuho Bank in Singapore.
"Add to that, the growing severity of 'second wave' risks in Europe, with
the U.K. and France seeing a worrying escalation in new cases," in addition to
flare-ups in the U.S., Canada and elsewhere, he said.
Japan's benchmark Nikkei 225 declined 1.1% to finish at 23,087.82.
Australia's S&P/ASX 200 slipped 0.8% to 5,875.90. South Korea's Kospi sank 2.6%
to 2,272.70. Hong Kong's Hang Seng dropped 1.8% to 23,311.07, while the
Shanghai Composite gave up 1.7% to 3,223.18.
Wall Street experienced more whiplash Wednesday as stocks closed broadly
lower, wiping out gains from the day before.
Apart from worries over the pandemic and politics, Big Tech stocks like
Apple and Amazon have been at the center of recent market swings. They soared
on expectations that their growth will only strengthen as the pandemic
accelerates work-from-home and other trends favoring digitization. But they
began falling early this month amid fears that they had grown too expensive.
Johnson & Johnson began a huge final study to try to prove if a single dose
COVID-19 vaccine can protect against the coronavirus. A handful of other
vaccines are already in final-stage studies, and investors increasingly expect
one to be available within the first three months of 2021. The hope is that it
can help revive the economy and spur strong growth.
Part of this week's early stumble for stocks was due to worries about
European governments imposing tougher restrictions on businesses to slow the
spread of the coronavirus, which hurt travel-related companies in particular.
In energy trading, benchmark U.S. crude fell 39 cents to $39.54 a barrel in
electronic trading on the New York Mercantile Exchange. Brent crude, the
international standard, lost 41 cents to $41.36 a barrel.
The U.S. dollar cost 105.35 Japanese yen, little changed from 105.38 yen
late Wednesday. The euro was trading at $1.1657, almost unchanged from $1.1660.