Markets remain vulnerable as governments gradually ease coronavirus lockdowns and travel restrictions to revive economic growth while attempting to control the spread of Covid-19. Meanwhile, China over the weekend released details of a proposed national security law that would give the mainland the right to directly prosecute Hong Kong residents for still vaguely defined offenses.
“Shares remain technically overbought and vulnerable to a further correction or period of consolidation, but we continue to see it as a pause in a rising trend,” said Shane Oliver, a global investment strategist at AMP Capital Investors Ltd. “Fear about a second wave of coronavirus cases continues.”
Elsewhere, China’s suspension of imports from a Tyson Foods Inc. plant stoked concerns over the broader implications for U.S. and global meat exports during the pandemic.
Here are some key events coming up:
- MSCI Inc. on Tuesday announces its market classification review for 2020.
- The IMF will release new 2020 growth projections on Wednesday.
- U.S. jobless claims, durable goods and GDP data are due Thursday.
- Policy decisions are expected from central banks in Turkey and the Philippines Thursday.
- A rebalance of Russell indexes is due on Friday.
- Futures on the S&P 500 rose 0.4% as of 11:38 a.m. in Tokyo. The index fell 0.6% on Friday.
- Japan’s Topix index was little changed.
- Hong Kong’s Hang Seng fell 0.2%.
- South Korea’s Kospi dropped 0.1%.
- Australia’s S&P/ASX 200 Index rose 0.3%.
- Shanghai Composite Index rose 0.3%.
- Euro Stoxx 50 futures declined 1%.
- The yen was flat at 106.90 per dollar.
- The offshore yuan was steady at 7.0718 per dollar.
- The Aussie rose 0.3% to 68.52 U.S. cents.
- The euro bought $1.1195.
- The yield on 10-year Treasuries was at 0.69%.
- Australia’s 10-year yield remained at 0.86%.
- West Texas Intermediate crude oil gained 0.5% to $39.94 a barrel.
- Gold climbed 0.6% to $1,753.62 an ounce.