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GLOBAL MARKETS-U.S. stock futures extend losses after Trump says going into quarantine

Published 10/02/2020, 11:47 AM
Updated 10/02/2020, 11:50 AM
© Reuters.
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* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Traders await payrolls, but sentiment is weak
* U.S. stimulus talks bog down
* Tokyo bourse reopens after trading halt on Thursday
* China, South Korea and Hong Kong markets shut for holiday

By Stanley White and Pete Schroeder
TOKYO/WASHINGTON, Oct 2 (Reuters) - U.S. stock futures
dipped on Friday after President Donald Trump said he and his
wife will quarantine after a close aide tested positive for the
coronavirus.
Futures for the S&P 500 ESc1 fell 0.39% in Asian trading
after the nwes, extending earlier losses, while Treasury yields
remained broadly unchanged.
The U.S. dollar held steady against most currencies, but it
rose against the Australian and New Zealand dollars in a sign of
risk aversion.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS was down 0.15%. Australia's S&P/ASX 200 index
.AXJO fell 0.68% as a decline in oil and copper prices weighed
on the resources sector.
Japan's Nikkei 225 index .N225 was up 0.15% after the
Tokyo Stock Exchange (TSE) resumed normal trading after its
worst-ever outage brought the world's third-largest equity
market to a standstill. Trump said on Twitter that he and his wife had been tested
for coronavirus after Hope Hicks, a senior advisor who recently
traveled with the president, tested positive. If Trump also tested positive, that could cause a new wave
of market volatility as investors brace for a hotly-contested
presidential election in November.
"It depends on how serious this becomes, and whether or not
Trump is actually infected," said Masayuki Kichikawa, chief
macro strategist at Sumitomo Mitsui Asset Management.
"The most important thing is we were already worried about
an uncertain outcome from the election, and this adds to the
uncertainty."
In addition, a spate of data, including jobless claims and
consumer spending, suggested that the plodding U.S. economic
recovery could be losing steam. Futures for the tech-heavy Nasdaq NQc1 also fell 0.4% in
Asian trading. The benchmark 10-year Treasury yield was little
changed at 0.6709%.
There was a brief jump in trading volumes for both S&P and
Nasdaq futures, but activity has subsided as investors await
more details, according to a currency trader based in Singapore.
China's stock and bond markets, foreign exchange and
commodity futures markets are closed Oct. 1-8 for the Golden
Week holiday. South Korea and Hong Kong markets are also closed
on Friday for holidays.
U.S. markets kicked off the fourth quarter by closing higher
on Thursday while investors tracked progress in negotiations for
additional fiscal stimulus.
The Dow Jones Industrial Average .DJI rose 0.13% on
Thursday. The S&P 500 .SPX gained 0.53% and the Nasdaq
Composite .IXIC added 1.42%. U.S. consumer spending is starting to slow due to a shaky
jobs market. If policymakers cannot agree on more support, the
U.S. economy could lose more momentum. Traders are also waiting for the Labor Department's report
on non-farm payrolls and the jobless rate later Friday,
following new layoff announcements from the likes of Disney
DIS.N and Goldman Sachs GS.N . The dollar index was quoted at 93.811 =USD , close to a
one-week low due to doubts about U.S. stimulus talks.
Spot gold XAU= fell 0.55% to $1,894.59 an ounce, adding to
its worst month since November 2016, while oil prices continued
to fall, adding to a 10% September drop.
Brent crude futures LCOc1 were trading down 1.22% at
$40.43 a barrel in Asia on Friday, while U.S. crude futures
CLc1 were down 1.32% at $38.21 a barrel.
Oil prices fell more than 3% on Thursday as rising
coronavirus cases around the world dampened the demand outlook,
while a rise last month in member output from the Organization
of the Petroleum Exporting Countries also pressured prices.
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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
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