GLOBAL MARKETS-Caution reigns in wake of Nasdaq bounce, euro drifts higher ahead of ECB meeting

GLOBAL MARKETS-Caution reigns in wake of Nasdaq bounce, euro drifts higher ahead of ECB meeting

Reuters  | Sep 10, 2020 02:18

GLOBAL MARKETS-Caution reigns in wake of Nasdaq bounce, euro drifts higher ahead of ECB meeting

* Small gains in Asia stocks after Nasdaq jumped 2.7% overnight

* Currency markets await ECB

* Oil prices back under pressure amid demand fears

* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Tom Westbrook

SINGAPORE, Sept 10 (Reuters) - Stock markets rose on Thursday, but without the spring of Wall Street's tech rebound as Asia's investors trod carefully, while the euro crept higher as currency traders stood by for a crucial European Central Bank meeting later in the day.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS snapped its longest losing streak since February with a 0.7% gain. Japan's Nikkei .N225 rose 0.9% and Chinese blue chips .CSI300 rose 0.8%.

Markets in Sydney .AXJO and Hong Kong .HSI were just better than flat and, in a sobering reminder of the risks, Jakarta .JKSE nosedived 5% on plans to re-introduce COVID-19 social restrictions in the Indonesian capital. half-hearted moves in Asia ... nothing that smacks of conviction really," said Mizuho Bank's head of economics and strategy in Singapore, Vishnu Varathan.

"There are some questions about what exactly triggered this turnaround (on Wall Street). It wasn't as if the sun came poking out and it's all blue skies."

Futures traded either side of steady, with Euro STOXX 50 futures STXEc1 last up 0.3% and FTSE futures FFIc1 down 0.2%, while futures for the S&P 500 ESc1 rose 0.1% and Nasdaq 100 NQc1 futures were up 0.4%.

Varathan said investors were grappling with whether this month's U.S. tech selloff was really done, and beyond that an increasingly uncertain U.S. political outlook and persistent Sino-U.S. tensions.

Fuel demand fears also had oil prices back under pressure, in an indication of wavering confidence in global growth. O/R

Brent crude futures LCOc1 fell a fraction to $40.77 a barrel after bouncing back from a three-month low overnight. U.S. crude futures CLc1 slipped 0.2% to $37.99 a barrel.

Bond buyers also returned after a tepid response to a $35 billion U.S. 10-year auction overnight, pushing the yield on U.S. 10-year debt down by a whisker to 0.6968%. US/

EURO WAITS FOR ECB

Currency markets were mostly steady through the Asia session as investors look to the ECB policy statement due at 1145 GMT and a subsequent news conference from 1230 GMT. concerns that the bank may turn dovish, or sound worried about the euro's rise, have started to give way to an expectation it might be more upbeat about the economic outlook.

Bloomberg News reported on Wednesday that the ECB might leave its economic projections broadly steady - not exactly bullish, but enough to leave the euro EUR= drifting higher to $1.1821 in Asia.

"The risk now is that the euro could lift after the ECB meeting, if that is the case and there is more confidence," said Commonwealth Bank of Australia currency analyst Kim Mundy, something that would pull other currencies higher with it.

The pound GBP= was on a knife-edge ahead of emergency talks between Britain and the European Union on Thursday after a British proposal to ignore parts of the Brexit divorce pact threw trade negotiations into turmoil. last sat at $1.3006 and 90.91 pence per euro EURGBP= .

U.S. jobless claims figures are also due at 1230 GMT and investors are also intently focused on whether the U.S. stock market bounce can actually hold firm.

Wednesday's Nasdaq rebound has recouped about a quarter of the index's losses since it plunged from a record high on Sept. 2, but it has also highlighted how stretched some stocks are.

"It's too soon to say whether the rout is over, or whether last night's recovery is simply a pause," ANZ analysts said in a note on Thursday.

Gold XAU= was steady at $1,947 an ounce. GOL/

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Global assets

http://tmsnrt.rs/2jvdmXl Global currencies vs. dollar

http://tmsnrt.rs/2egbfVh Emerging markets

http://tmsnrt.rs/2ihRugV MSCI All Country Wolrd Index Market Cap

http://tmsnrt.rs/2EmTD6j

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (UK) English (India) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+

Download the Investing.com App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.

Investing.com is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.

';