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Stocks Largely Higher With Low Conviction; Gold Up

Stocks Largely Higher With Low Conviction; Gold Up

NEW YORK: Stocks and U.S. futures set aside concerns about rising Coronavirus case numbers in countries from the US to Australia Monday, but low trading volumes suggested a lack of conviction. Gold prices rose, Bloomberg reported.

S&P 500 Index contracts reversed a slide of as much as 1% to climb as Asia’s session progressed. Many Asia-Pacific indexes were also in the green, though Hong Kong dipped in wake of China’s latest moves on a national-security law. Treasuries were little changed, as was the dollar. Crude oil hovered below $40 a barrel in New York.

Australian shares reversed early declines, as did the local dollar, in the wake of Victoria tightening the populous state’s restrictions due to fresh cases. In the U.S., California reported record new cases and Florida infections jumped more than the weekly average. China’s Beijing outbreak appeared to fade, however.

Markets remain vulnerable as governments gradually ease coronavirus lockdowns and travel restrictions to revive growth while attempting to control the spread of Covid-19. Meanwhile, China over the weekend released details of a proposed national security law that would give the mainland the right to directly prosecute Hong Kong residents for still vaguely defined offenses.

“Shares remain technically overbought and vulnerable to a further correction or period of consolidation, but we continue to see it as a pause in a rising trend,” said Shane Oliver, a global investment strategist at AMP Capital Investors Ltd. “Fear about a second wave of coronavirus cases continues.”

These are the main moves in markets:

Stocks

  • Futures on the S&P 500 rose 0.7% as of 1:31 p.m. in Tokyo. The index fell 0.6% on Friday.
  • Japan’s Topix index was up 0.2%.
  • Hong Kong’s Hang Seng fell 0.3%.
  • South Korea’s Kospi was flat.
  • Australia’s S&P/ASX 200 Index rose 0.4%.
  • Shanghai Composite Index rose 0.3%.
  • Euro Stoxx 50 futures declined 0.7%.

Currencies

  • The yen was flat at 106.90 per dollar.
  • The offshore yuan was steady at 7.0702 per dollar.
  • The Aussie rose 0.6% to 68.73 U.S. cents.
  • The euro bought $1.1195.

Bonds

  • The yield on 10-year Treasuries was at 0.69%.
  • Australia’s 10-year yield remained at 0.86%.

Commodities

  • West Texas Intermediate crude oil was flat at $39.83 a barrel.
  • Gold climbed 0.4% to $1,751 an ounce.