European equity futures retreated as restrictions to curb the pandemic overshadowed progress toward a vaccine, while a gauge of Asian stocks was poised to snap its longest winning run since 1988. Treasuries gained.
Stocks edged up in China and Australia but dipped in Hong Kong. The MSCI Asia Pacific Index had risen for 13 consecutive sessions to Wednesday. S&P 500 futures fluctuated with the benchmark closing at its session low after New York City shut schools because of rising infections.
Japanese shares were mixed after Tokyo raised its coronavirus alert to the highest of four levels Thursday. Pfizer Inc. advanced earlier after saying its vaccine was 95% effective, paving the way to apply for the first US regulatory authorisation for a coronavirus shot within days.
The Bloomberg Dollar Spot Index traded near its lowest since April 2018, while oil was little changed and gold declined.
Investors are reining in some of the euphoria that propelled global stocks to record highs and saw a rotation into value shares in the past week on positive news about vaccine developments.
Instead, money managers remained focused on the latest coronavirus data showing high infection rates in Europe and the US, where deaths from the pathogen surpassed 250,000. In Japan, a local broadcaster reported that Tokyo found 534 new virus cases, a daily record.
“We are expecting tough times in coming months because of the resurgence of cases, but in terms of the longer term recovery path, the vaccine was a very important news milestone,” Melda Mergen, Columbia Threadneedle Investments deputy global head of equities, said on Bloomberg TV. “We think that the cyclical recovery is going to come back but there are going to be some bumps along the road.”
Elsewhere, Bitcoin fluctuated around $18,000 after surging above that level as cryptocurrencies roared back to life.
Here are some events to watch out for this week:
- Brexit talks look set to continue as the UK and EU approach the latest deadline.
- Bloomberg New Economy Forum virtually convenes global leaders to discuss trade, growing political populism, climate change, and the pandemic. Through November 19.
- Bank Indonesia rate decision Thursday.
These are the main moves in markets:
- S&P 500 futures rose 0.2% as of 7:10 a.m. in London. The S&P 500 Index fell 1.2%.
- The MSCI Asia Pacific Index fell 0.2%.
- Topix index advanced 0.3%.
- Australia’s S&P/ASX 200 Index rose 0.3%.
- Kospi index climbed 0.1%.
- Hang Seng Index fell 0.5%.
- Shanghai Composite Index rose 0.5%.
- Euro Stoxx 50 futures declined 0.7%.
- The yen was at 103.91 per dollar.
- The offshore yuan traded at 6.5685 per dollar, down 0.4%.
- Bloomberg Dollar Spot Index rose 0.1%.
- The euro was at $1.1850.
- The British pound fell 0.2% to $1.3245.
- The yield on 10-year Treasuries fell one basis points to 0.86%.
- Australia’s 10-year bond yield was at 0.89%.
- West Texas Intermediate crude fell 0.2% to $41.75 a barrel.
- Gold dipped 0.5% to $1,863 an ounce.