Dollar Steady; Asian Stocks Set to Open Mixed: Markets Wrap
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The U.S. dollar was mixed in early Asian trading Monday and the Australian dollar fell as the nation’s state hardest hit by the coronavirus tightened a lockdown. Equity futures pointed to a muted open amid spiraling Covid-19 cases.
Infections are picking up again in some U.S. states and a senior Federal Reserve official on Sunday urged Congress to act to support Americans laid off due to the pandemic and suggested a fresh lockdown. In Australia, Victoria state tightened restrictions and declared a state of disaster as cases skyrocket, while the Philippines imposed a stricter lockdown for capital Manila and nearby areas. Friday, U.S. stocks extended their July rally amid a surge in technology shares and talks over a virus-relief package. Treasuries climbed.
Signs the economic rebound is stalling and nations are again mulling lockdowns as the virus spreads unabated might make it tougher for stocks to gain further momentum after global equities notched their fourth consecutive monthly advance in July. Deepening tensions between the U.S. and China are also likely to rein in risk appetite.
Fitch Ratings also revised its outlook on the country’s credit score to negative from stable, citing a “deterioration in the U.S. public finances and the absence of a credible fiscal consolidation plan.” The country’s ranking remains AAA.
58,406 in U.S.Most new cases today
-4% Change in MSCI World Index of global stocks since Wuhan lockdown, Jan. 23
-1.204 Change in U.S. treasury bond yield since Wuhan lockdown, Jan. 23
4.4% Global GDP Tracker (annualized), June