Asian stocks open lower as faith in global recovery slips
By Imani Moise NEW YORK (Reuters) - Asian stocks opened lower on Thursday, tracking a sharply lower Wall Street session amid fresh concerns that the global economic recovery is running out of steam.
By Imani Moise
NEW YORK (Reuters) - Asian stocks opened lower on Thursday, tracking a sharply lower Wall Street session amid fresh concerns that the global economic recovery is running out of steam.
U.S. stocks fell on Wednesday after data showed business activity slowed in September, with gains at factories more than offset by a retreat at services industries.
Investors now await weekly data due later on Thursday, which is expected to show U.S. jobless claims fell slightly but remained elevated, indicating the world's largest economy is still far from recovering.
The data comes after a Federal Reserve official said it will be hard to boost employment without further government stimulus.
However, with congress locked in a stalemate, analysts see immediate fiscal support as unlikely.
"Equity sentiment remained positive in Europe but quickly soured in the U.S. as Fed speakers urged further fiscal support for the economy," Westpac Institutional Bank analysts said in a note.
In Asia, E-mini futures for the S&P 500
Additionally, a second wave of coronavirus infections in Europe threatened the economic recovery in that region pushing equities lower and propping up the safe-haven the safe haven dollar.
On Wednesday, the Dow Jones Industrial Average <.DJI> fell 1.92%, the S&P 500 <.SPX> lost 2.37% and the Nasdaq Composite <.IXIC> dropped 3.02%.
MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> closed 0.04% higher, while Japan's Nikkei <.N225> %.
Strength in the dollar, which rallied to a two-month high on Wednesday, weighed on gold prices.
The dollar index <=USD> rose 0.393%, while spot gold
Oil prices advanced slightly after reports that inventories were down across the U.S. but gains were muted by uncertainty about demand going forward as travel remains limited due to the pandemic.
Brent crude
The yield on Treasuries Benchmark 10-year
(Reporting by Imani Moise; Editing by Sam Holmes)
This story has not been edited by Firstpost staff and is generated by auto-feed.
also read
France, Germany to agree to NATO role against Islamic State - sources | Reuters
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
China's Xi says navy should become world class | Reuters
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.