Asian Stocks Retreat After U.S. Tech Giants Slide: Markets Wrap
Asian stocks slipped Thursday after U.S. technology giants dragged Wall Street benchmarks lower amid dimming prospects for fresh stimulus. The pound fell amid a stalemate in Brexit negotiations.
Shares in South Korea saw the brunt of losses, while those in Japan and Australia saw more modest declines. S&P 500 futures were little changed after the gauge slid from a record, and the Nasdaq 100 had its biggest slump in a month. Facebook Inc. sank after being sued by U.S. antitrust officials, while Tesla Inc. tumbled as JPMorgan Chase & Co. called it “dramatically” overvalued. The dollar was steady and Treasury yields ticked lower.
Talks between U.K. Prime Minister Boris Johnson and European Commission President Ursula von der Leyen ended without a breakthrough on Wednesday night as large gaps remain between the two sides. They agreed to continue talks over the next few days. Crude oil fluctuated.
Equities are coming under pressure as a U.S. stimulus deal remains elusive amid the most-intense negotiations over a Covid-19 package since Election Day. The Democratic and Republican lawmakers working on a relief plan delivered a more-detailed summary of their proposal, but haven’t yet resolved the deadlock over a business liability shield as well as aid to state and local governments.
“The idea here is that you’re not going to see a huge stimulus package,” Matt Brill, senior portfolio manager at Invesco, said on Bloomberg TV. “You are probably going to get something done, but it’s probably not going to be enough to put a lot of pressure on rates overall.”
Later Thursday comes the European Central Bank policy decision and a press briefing from Christine Lagarde. Economists widely expect the central bank to increase and extend its pandemic bond-buying program.
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