Australia

ASX set to slide as Wall Street slips on rising pandemic cases

Wall Street slumped on concern that a resurgence in coronavirus cases will derail the comeback for the world's biggest economy. Oil dipped below $US40 a barrel and Treasuries jumped.

Financial companies were among the worst performers on the S&P 500 Index as Wells Fargo & Co. prepared to cut thousands of jobs because of the pandemic. The Dow Jones Industrial Average's loss exceeded 1.3 per cent as Boeing Co. dropped. The Nasdaq gauges advanced as big tech stocks rose.

Wall Street fell on Thursday.

Wall Street fell on Thursday.Credit:AP

The S&P 500 closed 0.6 per cent lower, the Dow Jones tumbled by 1.4 per cent and the Nasdaq added 0.5 per cent. It sets up the Australian sharemarket for losses this morning, with futures at 6.35am AEST pointing to a fall of 28 points, or 0.5 per cent, at the open. On Thursday, the ASX added 0.6 per cent.

Long-term government bonds rallied following an auction for 30-year securities that showed strong demand.

Analysts are closely monitoring the spread of the coronavirus in the US and across the world, with record deaths in Florida and California seen as ominous signs. While optimists are betting that fiscal and monetary support will contain the fallout and cited jobs data Thursday that came in better than expected, others pointed out that the labour market is still treacherous.

"Sentiment clearly took a turn negative today, and the buildup of COVID-19 concerns seems to be the biggest issue," said Larry Milstein, senior managing director of government debt trading at R.W. Pressprich & Co. Given that cases are also rising in Asia, "there's a real concern that a second wave is approaching that will impact the global economy."

Elsewhere, European shares joined the decline. Gold traded near $US1,800 an ounce. West Texas oil slumped after swelling US crude stockpiles raised fresh concerns about oversupply and a key Libyan field resumed production.

Chinese equities outperformed as the Shanghai Composite notched an eighth day of gains, helped by signals of official support and strong demand from retail traders.

Most Viewed in Business

Loading

Football news:

Borussia Dortmund can rent Reinier from Real Madrid
Loko fans about support at matches: we Consider it a mistake to remain silent about disagreeing with the management's policy
Ex-Sunderland midfielder Cattermole has finished his career. He did not leave the club even after relegation to the 3rd division
Xavi: Racism, sexism and other forms of discrimination must be eradicated by stopping games
Javier Mascherano: Messi is the main reason why Barcelona can beat any team
Barcelona is looking for a new coach. Pochettino, Koeman, Xavi are among the candidates (ESPN)
I just want to show you my dog. Klopp's cute video call to the Liverpool newcomer