Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Stocks take a breather as Brexit, U.S. stimulus talks stall

EconomyDec 10, 2020 01:25AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. A man wearing a protective face mask walks past a stock quotation board outside a brokerage, amid the coronavirus disease (COVID-19) outbreak, in Tokyo

By Tom Westbrook

SINGAPORE (Reuters) - Asian equities eased from record highs on Thursday as stalled U.S. stimulus talks and a sell-off in tech stocks weighed, while sterling traders sat on a knife's edge as last-ditch Brexit negotiations yielded only an agreement to keep talking.

MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.34%. Japan's Nikkei erased early losses to trade 0.1% lower. Both are up more than 60% from March lows. S&P 500 futures meanwhile pared early gains and steadied in Asian afternoon trade.

U.S. Treasuries rose while the dollar slightly eased after a volatile overnight session in currency markets, with traders now looking ahead to a European Central Bank monetary policy meeting. Sterling teetered at $1.3366 as it awaits a Brexit resolution.

"We've risen so far so fast that it's making investors cautious," said Michael McCarthy, chief strategist at stockbroker CMC Markets in Sydney.

"The fall in tech stocks was a bit of a concern, given that they've risen in all market weather over the last six weeks, so to see them come off might signal that we're looking at a short term corrective move."

A near 2% drop in the Nasdaq on Wednesday was driven by a 1.9% fall in Facebook (NASDAQ:FB) shares after U.S. regulators filed lawsuits alleging the company used its dominance to buy or crush rivals, harming competition.

Meanwhile, S&P Dow Jones Indices said on Thursday it would remove ten Chinese companies from its equities indices and several others from its bond indices.

This move comes after a Trump administration order to prohibit purchases by U.S. investors of certain Chinese securities. Index provider FTSE Russell did the same last week.

TRICKY TALKS

Cautious trading in Asia came amid widespread uncertainty surrounding long-running U.S. pandemic relief negotiations and talks between Britain and the European Union over trade arrangements post Brexit.

U.S. lawmakers approved a stopgap government funding bill on Wednesday, but were unable to sort out disagreements over aid to state and local governments that are holding up a broader spending package.

British and EU leaders meanwhile gave themselves until the end of the weekend to seal a new trade pact, with some $1 trillion in annual trade at risk of tariffs if they can't reach a deal by Dec. 31, when transition arrangements end.

British and European futures slipped marginally in Asia, with FTSE futures little changed and EuroSTOXX 50 futures down 0.14%.

Investor focus will shift towards a European Central Bank meeting later on Thursday, where the central bank is expected to unveil more bond buying and cheap loans.

Traders are also looking to see whether the ECB will say anything about a near 14% rise in the common currency from March lows, which is hindering Europe's exporters.

"We do not think there will be an explicit talking down of the euro, but expect ECB Chief (Christine) Lagarde to mention the central bank is keenly monitoring the currency strength," analysts at Singapore's OCBC Bank said in a note.

Elsewhere, faith in the recovery appears to be holding up, with oil prices steady despite a build-up in U.S. inventories. Brent crude futures last sat 0.27% firmer at $49.13 a barrel and U.S. crude was up 0.29% at $45.81 a barrel.

Gold nursed losses at $1,839 an ounce.

Treasuries traded firmly owing to uncertainty around U.S. stimulus wrangling, and the yield on benchmark U.S. ten-year bonds fell 1.2 basis points to 0.9278%.

"The uncertainty around the timing is less important than the uncertainty around the overall size of the package, which depends primarily on the outcome of the Senate runoffs in Georgia on January 5," Goldman Sachs (NYSE:GS) analysts said in a note.

"For now, our assumption is a $700 billion COVID relief package," they said, adding it would be upgraded to between $1 trillion and $1.5 trillion if Democrats win the two seats.

Stocks take a breather as Brexit, U.S. stimulus talks stall
 

Related Articles

Arrival EV Stock: Getting Closer to Revenue
Arrival EV Stock: Getting Closer to Revenue By TipRanks - Sep 19, 2021

There have been some interesting companies that have listed in 2021 through a SPAC business combination. Further, there has been no dearth of companies that have listed in the...

COVID-19 Tests a Boon for Quest Diagnostics
COVID-19 Tests a Boon for Quest Diagnostics By TipRanks - Sep 19, 2021

Shares of Quest Diagnostics Inc (DGX) were trading at around $154.77 apiece at close on Friday, September 17, outperforming the Health Care Select Sector SPDR (XLV) $132.35, by...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (9)
Stratus Angelacus
Stratus Angelacus Dec 10, 2020 2:08AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Headline should have read: Stocks Slip Off Highs, S-P Index P/E Still At Record, Over 37/1.
Jan Skilbrei
Jan Skilbrei Dec 10, 2020 1:01AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
money, rich take it all...ask ,em pay medicine...not enough for yemen childs...Sir Paul of ruth less Beatless—grace fules..ask him give...he stole yesterday...jude...let it be..plus..ask give back..he pretend can not ask humanity for musical child...ev il to be so lazy..arro gant...
Thom Miller
Thom Miller Dec 09, 2020 11:13PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Nobody cares about Jerry Chan....another uneducated Trumper.
perplexed76 .
perplexed76 . Dec 09, 2020 11:13PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Jerry is right. This brexit deal lasted for 5 years. 5 years ago every day "experts" assured that without a prompt deal the world economy would be ruined.
Michael Angelo
Michael Angelo Dec 09, 2020 10:38PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Last time I saw the market like this was February and August...
Thom Miller
Thom Miller Dec 09, 2020 10:11PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Below censorship bleep = k/i/l/l.
Thom Miller
Thom Miller Dec 09, 2020 10:09PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
NEW POLL by NewsMax. Now I’ve seen everything. Donny Trump has spent billions of dollars of taxpayer money and twisted every conventional wisdom regarding vaccine approval with his Warp Speed initiative, and now only 7% of Trumpers will take the vaccine because they think it will ******them. They believe that Trump has intentionally seen to it that the vaccine will be lethal for them ONLY, and no Biden voters, because they failed to re-elect him by not voting by mail more than once. Newsmax has said that far right-wing scientists and doctors have confirmed this is true, and that everyone who voted for Trump only one time in 2020 should be forewarned.
Jerry Chan
Jerry Chan Dec 09, 2020 9:19PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
nobody cares about Brexit
Thom Miller
Thom Miller Dec 09, 2020 9:19PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You should! There eventually will be good news about a US / UK trade agreement that Joe Biden will nail down. A big boost for US markets!
Ronald Warren
Ronald Warren Dec 09, 2020 8:32PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Funny. There was no mention here in the United States about adverse reactions to the Pfizer Vaccine.
Patrick Dalton
Patrick Dalton Dec 09, 2020 8:32PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
there was.something on cnbc late in the day. not a major deal.
Leon Kelly
Leon Kelly Dec 09, 2020 8:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Correction time!
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email