Global Shares Mixed on Monday 04/19 05:18
Global shares were mixed and U.S. futures declined Monday amid cautious
optimism about a global rebound from the coronavirus pandemic.
TOKYO (AP) -- Global shares were mixed and U.S. futures declined Monday amid
cautious optimism about a global rebound from the coronavirus pandemic.
Investors are awaiting a raft of earnings reports this week that will
provide further fodder about how businesses are faring.
France's CAC 40 added 0.3% in early trading to 6,305.64, while Germany's DAX
inched down less than 0.1% to 15,457.17. Britain's FTSE 100 edged up 0.1% to
7,028.72. U.S. shares were set for a slow start to the week, with Dow futures
down 0.3% and the future for the S&P 500 0.2% lower.
Japan's benchmark closed less than 0.1% higher at 29,685.37, in the first
Tokyo market reaction to a weekend by Prime Minister Yoshihide Suga with
President Joe Biden over the weekend. Suga also spoke with the Pfizer chief
executive, asking to ensure a more steady supply of the company's COVID-19
vaccine. Japan has lagged the U.S., Israel and some European nations in a
vaccine rollout, with barely 1% of its population inoculated so far.
The government measures against COVID-19 infections already in some urban
areas, including Tokyo, are being expanded to other areas of Japan, starting
Tuesday, but the cities of Tokyo and Osaka are considering strengthening them
to a "state of emergency." Japan has never had a lockdown, and its laws would
need to be changed for such action.
Australia's S&P/ASX 200 inched up less than 0.1% to 7,065.60, while South
Korea's Kospi also was little changed, at 3,198.84. Hong Kong's Hang Seng rose
0.5% to 29,106.15. The Shanghai Composite gained 1.5% to 3,477.55.
Even though the possibility of faster delivery of vaccines was a plus, the
summit between Biden and Suga has added to tension with China, noted Yoshimasa
Maruyama, chief market economist at SMBC Nikko Securities.
"The Suga administration has taken a risk in China relations, in accordance
to the U.S. request," Maruyama said.
Suga may have hoped Biden would more forcefully express support for the
Tokyo Olympics, set to open in July despite widespread public objections and
worries about the pandemic, but their joint statement merely said the U.S.
supports Japan's "efforts to hold a safe and secure" Games.
COVID-19 vaccinations, now reaching half of the U.S. population, and massive
support from the U.S. government and Federal Reserve are fueling expectations
for solid corporate profit growth as more businesses reopen.
The last round of stimulus from the government helped lift retail sales, and
investors now have to weigh other proposals in Washington, which include
investments in infrastructure and potential tax changes.
Investors also are focusing on earnings, with dozens of U.S. companies due
to report results this week, including Coca-Cola, Johnson & Johnson, Verizon
Communications, Dow Chemical and American Airlines.
In energy trading, benchmark U.S. crude fell 7 cents to $63.12 a barrel in
electronic trading on the New York Mercantile Exchange. It lost 32 cents to
$63.19 per barrel on Friday. Brent crude, the international standard, was
unchanged at $66.77 a barrel.
In currency trading, the U.S. dollar edged down to 108.07 Japanese yen from
108.78 yen late Friday. The euro rose to $1.2022 from $1.1978.