New coronavirus strain worries pre-market stocks
The S&P 500 jump at first after reports of the stimulus agreement, only to fade to a loss of 0.2% as the session progressed
Barron's associate editor Andrew Bary tells 'Barron's Roundtable' to keep an eye on Alphabet, MSG Entertainment
Asian stocks faltered and sterling slid on Monday as unease over a new coronavirus strain that was shutting much of the United Kingdom offset news that a deal had finally been struck on a long-awaited U.S. stimulus bill.
The pound sank 1.2% to $1.3352 after several European countries closed their borders to the UK as the country entered a tougher lockdown to fight a new strain of coronavirus. Prime Minister Boris Johnson will chair an emergency response meeting on Monday to discuss international travel and the flow of freight in and out of Britain.
That combined with the lack of a Brexit deal to slice 1.1% off FTSE futures, while EUROSTOXX 50 futures shed 1.7%.
MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.2% after hitting a string of record peaks last week. Japan’s Nikkei reversed early gains to be down 0.4%, off its highest since April 1991.
WINGSTOP CEO CRITICIZES GATES FOR SAYING RESTAURANTS ‘SADLY’ NEED TO SHUT DOWN
In the United States, Republican U.S. Senate Majority Leader Mitch McConnell said an agreement had been reached by congressional leaders on a roughly $900 billion COVID-19 relief bill.
The news saw futures for the S&P 500 jump at first, only to fade to a loss of 0.2% as the session progressed.
TYSON FIRES SEVEN MANAGERS AFTER INVESTIGATION INTO COVID-19 BETTING RING
Analysts at BofA noted a huge $46.4 billion flowed into equities in the latest week, while the outflow from cash was the largest in four months.
There were record flows into tech shares and large flows to the consumer sector, healthcare, financials, real estate and value stocks. BofA chief investment strategist Michael Hartnett said a “sell signal” had been triggered for the first time since February as cash levels declined to 4.0% in the latest Global Fund Manager Survey.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
“Positioning is getting over-extended as policy support and profits are peaking,” he said in a note. “Expectations for higher growth, inflation and lower interest rates have become consensus and investors are positioning for a very rosy scenario of low volatility and high growth.”