|Day's range||1,382.03 - 1,438.96|
|52-week range||966.22 - 1,715.08|
Asian stocks were mixed after an upbeat open on Thursday, as investors pinned their hopes on an economic rebound from the coronavirus crisis. Shares rose in Tokyo, Sydney and Mumbai but dropped in Hong Kong, where tensions are flaring over Beijing’s effort to exert more control over the former British colony. The most recent developments are another thorn in a relationship already testy over China's handling of the early stages of the coronavirus outbreaks and over longstanding trade and other antagonisms.
Yes, a weakening renminbi is worrying, particularly when the US dollar is broadly lower, but fiscal and monetary stimulus is a nice comfort blanket. Japan is rolling out a ¥117tn ($1.1tn) package of easing, equal to 6 per cent of gross domestic product a month, after announcing the previous round of stimulus. The European Commission fired up appetite for regional shares and sovereign bonds with plans to seek approval to borrow as much as €750bn in debt in order to fund the eurozone’s recovery from Covid-19.
Shares rose in Asia on Tuesday as some regions in Japan resumed close-to-normal business activity, with hopes for economic recovery overshadowing worries over the coronavirus pandemic. Japan lifted its state of emergency under what Prime Minister Shinzo Abe on Monday called a new lifestyle, with widespread wearing of masks and face shields.
Stock indexes finished mostly higher Friday as Wall Street shook off an early slide, closing out a solid week of gains for the market. The S&P 500 index inched up 0.2% after having been down 0.5%. It ended the week with a 3.2% gain, largely due to a big rally on Monday that offset all of the benchmark index’s losses from earlier in the month.
Shares slipped in Asia on Friday as tensions flared between the U.S. and China and as more job losses compounded the economic fallout from the coronavirus pandemic. Hong Kong’s benchmark led regional losses, dropping 3.9% to 23,332.78 after the central government in Beijing said China’s ceremonial parliament will consider a bill that could limit opposition activity in the former British colony. Mass protests in the southern Chinese financial hub grew increasingly violent last year and only abated somewhat as the city fought off the coronavirus pandemic.
Yesterday’s decline into the closing bell didn’t materially change the bullish perspective in stocks or upturn the credit markets.
Asian stock markets were mixed Thursday after Wall Street rose despite trade tensions between China and Washington and Australia. Investors were looking ahead to Friday’s meeting of China’s legislature for details of possible new steps by Beijing to stimulate its virus-battered economy. Hong Kong and Australia were little-changed.
Summing up, despite the stock bulls being again rejected at the 61.8% Fibonacci retracement, the bullish case isn’t yet lost. How close to being over is the deterioration in the stock upswing internals?
The Russell 2000 has set up a very clear price resistance level near $131~132 that presents very real potential for a double-dip downward price trend in the near future.
Stocks again proved resilient in the face of Friday’s grim employment data. While the key metrics of the debt markets (high yield corporate bonds and its ratios) continue supporting the stock upswing to go on, the stocks to Treasuries ratio spells short-term caution
It’s just a small change so far, but smaller stocks may finally be wresting some of investors’ attention away from the huge companies that have so dominated the market for years. This most recent bounce for smaller stocks has come as investors swung from panic about the recession sweeping the global economy to optimism that growth could resume later this year as economies reopen.
Investors have been transitioning away from fear surrounding the coronavirus to focus more on stocks and fundamentals, says a top market strategist.
Expect a “wide sloppy range” for the markets as individual states restart their economies while still managing the COVID-19 pandemic, says one top strategist.