Equities traded mixed in Asia as concerns regarding the mounting US – China tensions and pandemic worries kept stock investors on the sidelines while driving capital to safe haven assets.
Gains in Sydney (+0.26%) and Shanghai (+0.09%) were timid, as the Hang Seng (-0.09%) and Nikkei (-0.26%) edged lower. Mining and energy stocks led losses in Tokyo, even though the Bank of Japan (BoJ) summary of opinions pointed at a moderate pickup in economic activity from the second half of 2020.
Activity in FTSE (+0.20%) and DAX futures (+0.30%) hint at a positive start following losses on Friday, but the sentiment remains fragile with mounting discomfort after the UK imposed two-week quarantine for travelers from Spain. Tourism and summer activities will certainly remain a risk to be considered for European investors if mild measures, such as social distancing and the obligation to wear masks, do not prevent cases from rising. Investors fear renewed lockdowns, although any confinement measures in the close future are expected to be selective rather than a general halt in economic activity.
US futures point at a positive start on Monday as investors continue watching the second quarter earnings. Alphabet, Apple, Pfizer and McDonalds are among the big names due to release earnings this week.
By Ipek Ozkardeskaya
