Equity markets mixed as traders weigh lockdowns, stimulus

Hong Kong led gains, jumping one percent after a drop of more than two percent on Thursday, while Shanghai, Mumbai and Singapore were also in positive territory

HONG KONG (AFP) - Stock markets were mixed yesterday, with gainers supported by bargain-buying after the previous day’s sell-off, with investors growing increasingly concerned about new lockdown measures in Europe as a second wave of coronavirus takes hold.

Traders were also keeping tabs on developments in Washington as lawmakers struggle to find agreement on a new stimulus for the beleaguered US economy, with a disappointing jobs report highlighting the need for action.

But analysts suggested that with Democrats and Joe Biden enjoying big opinion poll leads, expectations for a clean sweep of Congress and the White House in the November 3 elections is lending buoyancy to equities on hopes they will pass a much bigger rescue package.

All three main indexes on Wall Street finished in the red for a third day, hit by unsettling infection rates in the US and particularly in Europe that many fear could see the return of economically painful restrictions similar to those imposed earlier this year.

London faces more stringent restrictions as cases rise, while Paris and eight other French cities will be put under partial curfew for as long as six weeks.

Germany also ramped up measures, while the EU’s disease control agency labeled more than half of the bloc’s member states as red zones in a new map to guide countries’ decisions on travel restrictions.

“We need to take into account the tremendous rally we’ve had over the past five months so some consolidation is certainly warranted,” Jim McDonald, at Northern Trust, told Bloomberg TV.

“The new risk emerging on the horizon is the increasing cases of Covid that are sweeping across Europe and increasing across the US.”