World Shares Mixed on Thursday 08/06 05:47
Stocks were mixed in Europe and Asia on Thursday as investors watched to see
if lawmakers will come ahead with fresh stimulus for a U.S. economy struggling
with shutdowns as new coronavirus outbreaks flare.
(AP) -- Stocks were mixed in Europe and Asia on Thursday as investors
watched to see if lawmakers will come ahead with fresh stimulus for a U.S.
economy struggling with shutdowns as new coronavirus outbreaks flare.
Germany's DAX gained 0.5% to 12,727.71 while the CAC 40 in Paris slipped
0.2% to 4,924.39. Britain's FTSE 100 fell 1.3% to 6,024.60. The future for the
S&P 500 edged 0.1% higher while the contract for the Dow industrials picked up
In Asian trading, Tokyo's Nikkei 225 index shed 0.4% to 22,418.15 while the
Shanghai Composite index gained 0.3%, clawing back losses in last minute buying
to close at 3,386.46. Hong Kong lost 0.7% to 24,930.58.
South Korea's Kospi added 1.3%, closing at 2,342.61 after Samsung
Electronics, the country's biggest company, unveiled three new models of
smartphones it hopes will revive its sinking sales.
Samsung's shares rose 1.9%.
Australia's S&P/ASX 200 added 0.7% to 6,042.20, lifted by strong gains in
commodity prices on expectations that China's economy is on the mend after the
country largely recovered from the pandemic.
The S&P 500 index logged its fourth straight gain on Wednesday, pulling
within 1.7% of the record high it set in February. It picked up 0.6% to
3,327.77 as negotiators on Capitol Hill reported some progress in talks for
more support for the economy as pressure mounts for quicker action.
Overall, "stocks remain underpinned by optimism over the coronavirus relief
bill. Democrats and the White House are inching closer to a deal, and the
market remains cheery an agreement can be signed off by the end of the week,"
Stephen Innes of AxiCorp said in a commentary.
A report released Wednesday suggested that U.S. hiring was far weaker last
month than economists expected. Private employers added just 167,000 jobs,
according to a survey by payroll processor ADP, well below the 1.2 million that
economists had forecast. A more comprehensive jobs report from the Labor
Department is due Friday.
Rising caseloads of the coronavirus remain a concern, however, with
officials in Spain warning of a relapse while numbers continue to mount in the
In Hong Kong, authorities reported 85 newly confirmed cases, almost all of
them untraceable or locally transmitted. In Japan, the governor of Aichi
prefecture, where Toyota Motor Corp. has its headquarters, declared a state of
emergency through Aug. 24, saying newly confirmed cases have been rising by
more than 100 daily. Before that, daily cases had been zero for extended
Gov. Hideaki Ohmura told reporters businesses are being asked to close
altogether or close early, and people are being asked to stay home at night, to
prevent infections from spreading. Japan has largely sought to avoid major
shutdowns, partly because of laws limiting the government's powers.
In Washington, Congress and White House officials are negotiating on more
aid for an economy that's shown some improvement but is still hobbling.
Investors say such a package is crucial and needs to arrive quickly, with
millions of Americans still out of work and $600 in weekly unemployment
benefits from the U.S. government having recently expired.
Treasury yields sipped, with the yield on the 10-year Treasury at 0.51%,
down from 0.54% late Wednesday.
Yields have remained very low as investors have continued to worry about the
weak economy and as the Federal Reserve has unleashed massive amounts of
Gold rose even further into record territory, continuing its strong climb
since the spring amid nervousness about the economy and super-low interest
rates. Gold for delivery in December, the most actively traded contract, rose
$7.80 to $2,057.00 per ounce.
Benchmark U.S. crude fell back, giving up 33 cents to $42.86 per barrel in
electronic trading on the New York Mercantile Exchange. Brent crude, the
international standard, lost 14 cents to $45.02 a barrel.
In currency dealings, the U.S. dollar was flat at 105.58 yen. The euro fell
to $1.1739 from $1.1868.