Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  News  >  Markets

News : Markets
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 

Global Stocks Fall on Fed Caution

share with twitter share with LinkedIn share with facebook
05/14/2020 | 01:15am EDT

By Joanne Chiu

International markets fell, after cautious comments from U.S. Federal Reserve Chairman Jerome Powell added to concerns about the global economy.

In morning trading in Hong Kong on Thursday, the Hang Seng Index led regional declines with a nearly 1.5% drop. Benchmarks in Shanghai, Japan, South Korea and Australia declined less than 1% each.

The Dow Jones Industrial Average dropped 2.2% Wednesday, after Mr. Powell said further stimulus could be needed to support the U.S. economy's recovery from its coronavirus-induced contraction.

E-mini S&P 500 futures retreated nearly half a percent in Asian trading hours, suggesting U.S. shares could come under fresh pressure on Thursday.

Dwyfor Evans, head of macro strategy for Asia Pacific at State Street Global Markets, said markets were weighed down by Mr. Powell's "extremely negative" remarks, and the Fed chairman was effectively "crying out for political assistance" in the form of greater government spending.

On Wednesday Mr. Powell warned that, with company revenues depressed for longer, waves of business bankruptcies could follow, risking a much slower pace of improvement in the job market.

Mr. Evans at State Street said renewed trade tensions were also concerning, and if they picked up could lead to U.S. investors bringing back some capital invested abroad.

The Trump administration recently told a federal retirement plan to avoid Chinese stocks, while the Global Times, a Communist Party-run newspaper, said that Beijing was exploring punitive countermeasures to U.S. lawsuits seeking damages from China for the pandemic.

The Chinese government's annual legislative meetings, set to start on May 22, could give markets in Asia a lift, said Mr. Evans.

He said Beijing could offset weak exports by cutting taxes and levies to encourage domestic consumption, helping boost China's economic recovery from the coronavirus. "China should be leading the global economy out of this. We think of it very much as first into the crisis, first out of the crisis," he said.

Write to Joanne Chiu at joanne.chiu@wsj.com


Stocks mentioned in the article
ChangeLast1st jan.
DJ INDUSTRIAL 0.36% 25827.36 Delayed Quote.-9.82%
HANG SENG 1.03% 25351.9 Real-time Quote.-10.99%
NASDAQ 100 0.61% 10341.891881 Delayed Quote.18.42%
NASDAQ COMP. 0.52% 10207.628547 Delayed Quote.13.76%
S&P 500 0.45% 3130.01 Delayed Quote.-3.12%
THE GLOBAL LTD. -0.96% 207 End-of-day quote.-56.05%
THE LEAD CO., INC. -2.43% 361 End-of-day quote.-7.44%
THE NEW HOME COMPANY INC. 0.63% 3.2 Delayed Quote.-31.33%
share with twitter share with LinkedIn share with facebook
Latest news "Markets"
09:42aEuropean Stocks Drift Lower With U.S. Markets Shut
08:16aWALL STREET STOCK EXCHANGE : Everything is not what it seems…
08:07aEuropean Stocks Waver With U.S. Markets Shut
06:17aEuropean Stocks Waver With U.S. Markets Shut
05:39aEuropean Stocks Waver With U.S. Markets Shut
04:49aEUROPE : European stocks pause as virus worries offset rebound hopes
02:48aWALL STREET STOCK EXCHANGE : Wall Street Falls Short on Race Despite Pledges -- WSJ
Latest news "Markets"