By Wayne Cole
SYDNEY (Reuters) – Asian stocks opened lower on Monday as rising coronavirus cases in Europe and the United States threatened global prospects as China leaders met to study the future of the financial giant.
The United States has seen the highest number of new COVID-19 cases in two days, while France has also filed unwanted files and Spain has declared a state of emergency.
This combined with no clear progress on a US stimulus package to reduce S&P 500 futures by 0.5% (). EUROSTOXX 50 () futures decreased 0.4% and futures () 0.3%.
The broader MSCI Asia-Pacific stock index outside Japan () remained stable, even lower than its recent 31-month high. The Japanese Nikkei () ran on both sides of the stable and the main index of South Korea lost 0.3% ().
Chinese blue chips () fell 1.1% as the country’s leaders met to plan the nation’s economic course for 2021-2025, balancing growth with reforms amid uncertain global prospects and escalating tensions with the United States.
Graphic – Asian stock markets: https://product.datastream.com/dscharting/gateway.aspx?guid=516bc8cb-b44e-4346-bce3-06590d8e396b&action=REFRESH
A week full of monetary policy sees three major central banks meet. The Bank of Canada and the Bank of Japan are expected to catch fire for now, while the market assumes that the European Central Bank will listen carefully for inflation and growth even if they miss a further easing.
Expected data on Thursday is expected to show that US economic production recovered by 31.9% in the third quarter, following the historic collapse of the second quarter, resulting in consumer spending.
Analysts at Westpac noted that such a recovery would leave GDP about 4% lower than at the end of last year, with business investment remaining poor.
“In order to fully recover the lost activity, an additional significant financial incentive is needed,” they said in a note.
The U.S. presidential election will be re-emerging as markets move in price, with a Democratic president and a congressman likely to lead to more government spending and borrowing.
This outlook reached its highest level since the beginning of June last week at 0.8720%
“We have increased the likelihood of a democratic sweep, already of our core business, from 40% to just over 50% and we have raised our expectation that Biden will win from 65% to 75%,” NatWest Markets analysts wrote.
“We are seeing sharper performance curves in the US and a weaker US dollar is likely to prevail in our core business.”
The dollar fell on Monday, having fallen sharply last week. The euro was hovering at $ 1.1840 () and just below its recent high of $ 1.1880, while the dollar was hovering at 104.80 yen
The industry was more stable at 92,904 (), after falling almost 1% last week.
In commodity markets, gold rose 0.1% to $ 1,898 an ounce
Oil prices fell further in anticipation of rising crude supply and demand concerns in Libya caused by rising coronavirus cases in the United States and Europe.
Brent futures fell 65 cents to $ 41.12 a barrel, while US crude oil () fell 69 cents to $ 39.16.
(This story was reformatted for correction in the S&P 500 heading)