U.S. stock indexes closed at their lowest levels in about two weeks Friday, after Texas and Florida were forced to backtrack on reopening their economies as coronavirus cases rose further and a record number of new cases were reported nationwide.
Stocks in Asia Pacific fell in Monday morning trade as the number of coronavirus cases globally continues to rise.
Rally in information technology (IT) stocks, HDFC Bank, and Reliance Industries (RIL) helped the benchmark index, S&P BSE Sensex, settle with 329 points or 0.9% gains at 35,171 levels on Friday. Market is expected to open flattish note and likely to witness sideways move during the day.
U.S. consumer spending rebounded by the most on record in May, but the gains are not likely to be sustainable, with income dropping and expected to decline further as millions lose their unemployment checks starting next month. Consumer spending, which accounts for more than two-thirds of U.S. economic activity, jumped 8.2% last month. That was largest increase since the government started tracking the series in 1959. Consumer spending tumbled by a historic 12.6% in April. China's central bank said that the country's economic growth faces challenges from the global coronavirus pandemic, despite signs of improvement amid business re-openings. Profits at China's industrial firms rose for the first time in six months in May, suggesting the country's economic recovery is gaining traction and brightening the outlook for manufacturing investment and jobs. Profits at China's industrial firms in May rose 6% year-on-year to 582.3 billion yuan ($82.28 billion). The rebound followed a 4.3% fall in April, and is its sharpest monthly gain since March 2019.
Oil prices fell for a second straight session on Monday as coronavirus cases rose in the United States and other places, leading countries to resume partial lockdowns that could hurt fuel demand. Gold prices edged higher on Monday as a sustained rise in novel coronavirus cases around the world intensified fears about a delay in global economic recovery and prompted investors to seek the safe-haven metal.
A firm dollar kept riskier currencies under pressure on Monday, as a surge in coronavirus cases and the reimposition of curbs to stop its spread had investors worried that a global economic recovery could be derailed even before it had taken root.
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