Stocks Turn Lower as Virus Cases Rise, Countries Lock Down

Business

January 5th, 1:25pm

Asharq Al-Awsat

A man walks past a bank's electronic board showing the Hong Kong share index in Hong Kong, Tuesday, Jan. 5, 2021. (AP Photo/Vincent Yu)

Global shares turned lower on Tuesday as more countries imposed restrictions on businesses and public life to cope with a stubborn increase in coronavirus infections. Britain´s FTSE 100 fell 0.2% to 6,560 after the government toughened its lockdown measures and expanded them nationwide. France's CAC 40 dropped 0.8% to 5,542, while Germany's DAX shed 0.8% to 13,620. US shares were set to drift lower with both Dow and S&P 500 futures down 0.2%. With coronavirus cases climbing at frightening rates around the world, more lockdown orders to fight the pandemic threaten to undermine a global economic recovery, countering progress thanks to the rollout of COVID-19 vaccines. Investors are also looking ahead to a run-off election for senatorial seats in the state of Georgia that will determine whether Republicans retain control of the Senate. The vote is expected to have a critical impact on the potential effectiveness of President-elect Joseph Biden. Japan's benchmark Nikkei 225 shed 0.4% to finish at 27,158.63 as the government was preparing to declare a state of emergency in Tokyo and several surrounding areas. Australia's S&P/ASX 200 inched down less than 0.1% to 6,681.90. South Korea's Kospi jumped 1.6% to 2,990.57, while Hong Kong's Hang Seng added 0.6% to 27,649.86. The Shanghai Composite climbed 0.7% to 3,528.68. On Monday, US stocks pulled back from their recent record highs, as big swings returned to Wall Street at the onset of a year where the dominant expectation has been for a powerful economic rebound to sweep the world. Investors have been hoping that vaccines will allow daily life around the world to slowly return to normal. That's helped spark a recent recovery for stocks of travel-related businesses, smaller companies, and other industries left behind for much of the pandemic. In energy trading, benchmark US crude gained 70 cents to $48.32 a barrel in electronic trading on the New York Mercantile Exchange. It shed 92 cents on Monday. Brent crude, the international standard, rose 74 cents to $51.83 a barrel. In currency trading, the dollar slipped to 102.94 Japanese yen from 103.13 yen late Monday. The euro cost $1.2268, up from $1.2249.

from Asharq AL-awsat https://english.aawsat.com/home/article/2723161/stocks-turn-lower-virus-cases-rise-countries-lock-down