World shares struggle to shake off bearish mood as U.S. tech giants wobble

5 Min Read

TOKYO (Reuters) – Share markets struggled globally on Friday in a shadow cast by overnight falls in U.S. big tech shares, as well as doubts about the prospects for a U.S. stimulus after the Senate rejected a Republican bill.

FILE PHOTO: A man using his mobile phone is silhouetted against a stock quotation board outside a brokerage firm in Tokyo February 21, 2006. REUTERS/Toru Hanai

European stocks are expected to trade slightly lower, with euro stoxx 50 futures STXEc1 down 0.1%.

In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS gained 0.2%, thanks to a rebound in Hong Kong and Chinese shares, but it still hovered just above a one-month trough touched earlier this week. Japan’s Nikkei .N225 rose 0.6%.

Dampening the mood, the U.S. Senate on Thursday killed a Republican bill that would have provided around $300 billion in new coronavirus aid, as Democrats seeking far more funding prevented it from advancing.

“The need for more fiscal support seems obvious, but the chances of imminent support have diminished significantly,” wrote Rodrigo Catril, senior FX strategist at National Australia Bank in Sydney.

Data also showed the number of Americans filing new claims for unemployment benefits remained high last week, and the total number of people who are on unemployment benefits increased to 29.6 million.

Graphic: U.S. unemployment

U.S. tech shares, unquestionable leaders of the world’s stock recovery since late March, failed to sustain a brief rebound.

On Wall Street on Thursday, the S&P 500 .SPX lost 1.77% while the Nasdaq Composite .IXIC dropped 1.99%, both on course for a second straight week of losses.[.N]

The NYSE Fang+ index of big 10 tech companies .NYFANG has lost 5.4% so far this week — its biggest weekly loss since the market turmoil in March if sustained by the end of Friday.

Still, the index is

Read More Here...

Bookmark the permalink.

Comments are closed.