(Bloomberg) — Asian stocks were mixed while U.S. and European equity futures rose Friday as investors mulled continued talks over U.S. stimulus and the economic impact of fresh restrictions in some parts of the world to fight the resurgent coronavirus.
Shares dipped in Tokyo, Sydney and Seoul, while Hong Kong and China climbed. S&P 500 futures edged higher after the benchmark came off its session lows as banks rebounded from a two-day selloff and energy shares rallied. U.S. small-cap shares pushed higher while the Nasdaq underperformed. Treasuries and the dollar were steady, while crude oil ticked lower.
President Donald Trump said he is willing to go beyond the $1.8 trillion offer for relief that’s already been put forward, but Senate Majority Leader Mitch McConnell rejected that. Treasury Secretary Steven Mnuchin told Pelosi Trump will personally lobby to get reluctant Senate Republicans behind any stimulus deal they reach.
With fresh U.S. stimulus remaining elusive for now, investors are monitoring clampdowns in Europe’s biggest cities as concern grows that measures aimed at containing the virus’s spread could cause more damage to a fragile global recovery. Data showed an unexpected surge in U.S. jobless claims to the highest since August — a troubling sign for a labor market whose recovery was already slowing.
“We need to take into account the tremendous rally we’ve had over the past five months so some consolidation is certainly warranted,” Jim McDonald, chief investment strategist at Northern Trust, said on Bloomberg TV. “The new risk emerging on the horizon is the increasing cases of Covid that are sweeping across Europe and increasing across the U.S.”
Friday brings the expiry of options contracts on U.S. equities, indexes and exchange-traded funds, lifting the chances for intraday volatility.
Here are some key events coming up:
European Central Bank President Christine Lagarde leads off the virtual annual meetings of the International Monetary Fund and the World Bank Group. Through Oct. 18.
Video: Stocks fall for third straight day (Reuters)
These are some of the main moves in markets:
S&P 500 futures added 0.3% as of 11:57 a.m. in Tokyo. The index decreased 0.2% on Thursday.Japan’s Topix index dipped 0.3%.Hong Kong’s Hang Seng added 1%.South Korea’s Kospi lost 0.5%.Shanghai Composite rose 0.4%.Australia’s S&P/ASX 200 Index fell 0.2%.Euro Stoxx 50 futures rose 0.9%.
The Bloomberg Dollar Spot Index was flat.The euro was little changed at $1.1702.The yen rose 0.2% to 105.28 per dollar.The offshore yuan was little changed at 6.7169 per dollar.
The yield on 10-year Treasuries remained at 0.73%.Australia’s 10-year yield fell two basis points to 0.75%.
West Texas Intermediate crude decreased 0.8% to $40.65 a barrel.Gold was flat at $1,908.47 an ounce.
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