World markets subdued as US trading shut for Thanksgiving

Business

World markets subdued as US trading shut for Thanksgiving

Friday, November 27, 2020

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TOKYO, Japan (AP) — Global stock markets were subdued yesterday after significant gains in recent days and as US trading remained closed for the Thanksgiving holiday.

Investors have been in an upbeat mood this week, pushing the Dow above 30,000 for the first time, on news of the development of novel coronavirus vaccines and treatments.

They then became more cautious as novel coronavirus infection rates remain high in many major economies and after the release of a batch of discouraging US economic data, including jobless numbers.

Germany's DAX ended the day flat at 13,286 while France's CAC 40 dipped about 0.1 per cent to 5,566. Britain's FTSE 100 slipped 0.6 per cent to 6,362.

US markets were closed yesterday and will open for half-day today.

In Asia, Japan's benchmark Nikkei 225 gained 0.9 per cent to finish at 26,537.31, the highest level for the index since the collapse of the Japanese “bubble economy” nearly three decades ago.

Cases of COVID-19 continue to soar around the world, and deaths related to the sickness are growing, hitting more than 1.4 million people cumulatively worldwide. Worries are growing about it spreading during the Thanksgiving holiday in the US.

In Japan, authorities asked restaurants and bars to close early, and people to refrain from travel. European governments are looking to ease existing restrictions ahead of Christmas, though the many limits on businesses are expected to continue.

Economic data have been mixed this week, with reports showing that the number of Americans seeking unemployment aid jumped last week to the highest level in more than a month. A separate report showed consumer spending posted the weakest gain since April.

“The market overall has reached, by most standards, what we call overbought conditions, and that typically suggests that the market would need to digest the gains, perhaps pause a bit, and consolidate,” said Quincy Krosby, chief market strategist at Prudential Financial.

The Commerce Department said US consumer spending, the primary driver of the economy, rose by a sluggish 0.5 per cent in October, the weakest gain since April when the pandemic first erupted. At the same time, the Government said that income, which provides the fuel for consumer spending, fell 0.7 per cent in October.

In energy trading, benchmark US crude shed 56 cents to US$45.15 a barrel. Brent crude, the international standard, fell 61 cents to US$47.92 a barrel.

The dollar inched down to 104.25 yen from 104.50 yen. The euro cost $1.1906, up from $1.1885.


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