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Shares Get started Week With Declines Amid Virus Worry: Markets Wrap

(Bloomberg) — Asian stocks and U.S. equity futures slipped Monday after deaths around the world from the coronavirus topped half a million and infections continued to mount in American states. Crude oil fell.

Stocks fell in Japan and Australia and S&P 500 contracts dipped. South Korean shares and the won retreated after the country’s finance minister ruled out another budget for this year. Treasuries edged higher. Chinese markets are due to reopen after a two-day holiday, with data over the weekend showing more signs the economy is continuing to recover from its shutdown.

Investors are bracing for a continuation of last week’s risk-off sentiment as coronavirus cases surpassed 10 million globally and a resurgence in the U.S. continues to batter states likes Texas, Arizona and Florida. Providing some respite from the negative news, China’s industrial companies saw the first monthly increase in profits since November.

“The recovery is going to be much slower and much more uneven than most people believe,” David Hunt, president and CEO of PGIM Inc., said on Bloomberg TV. “Markets are priced for a much sharper V-shaped recovery which we don’t think is likely.”

Meanwhile, China’s central bank said it will implement new monetary tools to make sure liquidity reaches the real economy. The People’s Bank of China said it will increase the proportion of smaller company, credit and manufacturing loans, and continue to lower lending rates, while reiterating that it will keep the yuan stable.

Here are some key events coming up:

New York Fed President John Williams moderates a discussion with IMF Managing Director Kristalina Georgieva on Monday.On Tuesday, Federal Resserve Chairman Jerome Powell and U.S. Treasury Secretary Steven Mnuchin testify before the House Financial Services Committee.The U.S. jobs report for June on Thursday may continue data-collection issues from May that appear to understate the true scale of joblessness.Friday brings the U.S. Independence Day holiday. Markets are closed, along with government offices.

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These are the main moves in markets:

Stocks

S&P 500 futures fell 0.3% as of 9:01 a.m. in Tokyo. The gauge fell 2.4% on Friday.Japan’s Topix index dropped 1.3%.South Korea’s Kospi retreated 1.6%.Australia’s S&P/ASX 200 Index declined 0.8%.

Currencies

The yen was little changed at 107.16 per dollar.The offshore yuan held at 7.0857 per dollar.Australia’s dollar slipped 0.1% to 68.59 U.S. cents.The euro bought $1.1221.

Bonds

The yield on 10-year Treasuries fell one basis point to 0.63%.

Commodities

West Texas Intermediate crude oil fell 1.8% to $37.81 a barrel.Gold was at $1,771.10 an ounce, little changed.

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