Global Stocks Slip Ahead of U.S. Economic Data
30 Luglio 2020 - 11:37AM
Dow Jones News
By Anna Hirtenstein
Global stocks fell Thursday ahead of data that is likely to show
that the U.S. economy shrank during the second quarter at the
steepest pace since World War II, providing fresh insight into the
damage wrought by the coronavirus pandemic.
Futures tied to the S&P 500 traded down 0.8%, suggesting
that U.S. stocks may decline after the opening bell. The
pan-continental Stoxx Europe 600 slipped 0.6%. Most major Asian
stock benchmarks dropped by the close of trading.
Investors will get a view into the disruption to the economy in
the months with the most stringent lockdowns when the Commerce
Department releases initial estimates on how much gross domestic
product shrank in the three months ended June 30 at 8:30 a.m. ET.
Economists project second-quarter GDP fell at a seasonally adjusted
annual rate of 34.7% during the period, when states imposed
lockdowns across the country to contain the virus and then lifted
restrictions.
"It will give us a sense of how bad the situation was," said
Sebastien Galy, a macro strategist at Nordea Asset Management. "The
sense of the catastrophe and the realization around what happened
is a powerful force. It may have some impact on consumption and
politics."
The scope of the economic damage may also force U.S. lawmakers
to come together faster on the terms of a fresh stimulus bill, he
said.
The latest tally of weekly unemployment claims, also due out at
8:30 a.m., is likely to show an uptick in people who filed for
benefits in the week ended July 25, suggesting that the recovery in
the labor market may be faltering. The rise in infection rates
across parts of the U.S. has forced some states and businesses to
introduce fresh restrictions on commercial activity, which is
expected to lead to a rise in unemployment.
Treasurys rose, with the yield on the benchmark 10-year bond
slipping to 0.556%, from 0.578% on Wednesday. The U.S. dollar edged
up 0.3%, but continued to hover near a 2-year low.
Among European stocks, Volkswagen declined about 5% in German
trading after the automotive company posted a net loss for the
second quarter and cut its dividend. Lloyds Banking Group dropped
almost 9% in London after the lender unexpectedly posted a loss for
the first half and increased the amount of money set aside to cover
losses stemming from the pandemic's impact on the economy.
The string of U.S. companies scheduled to report earnings ahead
of the opening bell on Thursday include Carlyle Group, Procter
& Gamble and Mastercard.
Technology giants will take center stage after markets close,
with Apple, Facebook, Amazon.com and Google's parent company
Alphabet set to release their latest financial results. Those
reports will show how tech companies are weathering the economic
downturn and may even be benefiting from the lockdown measures, and
offer insights into whether the Nasdaq Composite Index's recent
rally may be sustained.
"We would say that the results will look more positive than the
rest of the market, but a caveat is that expectations are higher as
a result," said Raj Shant, a portfolio specialist at an affiliate
of PGIM Group. "One overriding factor benefiting tech names is that
the digitization of society has been pulled forward by at least a
couple of years due to the lockdowns."
Gold edged down after notching a record on Wednesday, ending an
eight-day rising streak. It slipped 0.3%, trading at $1,947.20 per
troy ounce.
In Asia, Hong Kong's Hang Seng Index fell 0.7% by the end of
trading, and Japan's Nikkei 225 closed down 0.3%.
Write to Anna Hirtenstein at anna.hirtenstein@wsj.com
(END) Dow Jones Newswires
July 30, 2020 05:22 ET (09:22 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
Grafico Azioni Amazon.com (NASDAQ:AMZN)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Amazon.com (NASDAQ:AMZN)
Storico
Da Apr 2023 a Apr 2024