Asia’s mixed markets signal a pause after Wall Street passed out.
The main Asian markets were mixed on Thursday afternoon, suggesting investors took a deep breath after dropping Wall Street stocks sharply on Wednesday.
The indices in Japan and Hong Kong fell less than 1 percent, while South Korean stocks rose more than 1 percent. The futures markets indicated a positive opening for European stocks later in the day and then for Wall Street.
Investors seemed to be taking a break after the S&P 500 index fell 4.4 percent on Wednesday, reflecting deteriorating economic data and President Trump̵
Further bad news could be in the works as investors are looking forward to weekly unemployment claims data expected later in the US later Thursday. For now, however, investors were looking for signs of a low in the market.
Long-term US government bond prices rose, suggesting that investors continued to view them as a safe place to park money. Gold prices also rose on the futures markets. But oil futures also rose, an indicator that some investors feel more secure than they do when they put their money in a market that depends on continued economic growth.
Wall Street falls as investors prepare for further damage.
Given bleak new projections of potential magnitude and Investors dumped stocks on Wednesday due to the economic impact of the coronavirus pandemic. The S&P 500 falls off more than 4 percent brought the decline to 6 percent over two days.
The decline following a sell-off in Europe and Asia came after President Trump said at a press conference on Tuesday that the United States would have “two, very painful two weeks” ahead of it. US government scientists predicted that the outbreak could kill up to 240,000 people in the country. On Wednesday, the United Nations warned of “heightened instability, agitation and conflict”.
The economic values are also deteriorating further. On Wednesday, surveys of manufacturing and manufacturing activity in the United States, Europe, and Japan showed that activity is slowing to levels that have not been reached in a decade or more. In the United States, factory orders and employment measures fell to their lowest levels since 2009, according to the Institute for Supply Management.
“The market is preparing for the rush of bad news in the next few weeks,” said Julian Emanuel, chief strategist for stocks and derivatives at the brokerage firm BTIG.
On Thursday, the U.S. government will report how many people applied for unemployment last week, and data could prove it Up to 5 million workers lost their jobs when people stayed at home and factories were closed.
A report from the Ministry of Labor on Thursday is expected to reveal millions more unemployed.
Another staggering number is expected on Thursday when the government reports the number of new unemployment claims filed across the country last week.
Several estimates assume around five million. This would add to last week’s demands, which were 3.3 million – a sum that could be revised up if the Department of Labor publishes its report at 8:30 a.m.East.
The speed and extent of job loss is unprecedented. Until the outbreak of the corona virus led to widespread stoppages and layoffs at work, the worst week for the first unemployment claims in 1982 was 695,000.
The economic damage caused by the pandemic initially focused on tourism, hospitality and related industries. But now the pain is spreading much further. The Institute for Supply Management announced on Wednesday that manufacturing, which had recently recovered from last year’s trade war, is shrinking again. ZipRecruiter data show a sharp drop in job advertisements, even in industries like education and healthcare that are typically isolated from recessions.
Despite the headwind of the market, overpriced housing and legal obstacles, the New York residential property market was largely on an unlikely upward trend in the first quarter.
Then the corona virus struck and stopped the rebound in its tracks. Now the high season pandemic is threatening to do the same across the property markets across the country.
It doesn’t matter what happened in the first two months of the year, said Jonathan J. Miller, President of Miller Samuel Real Estate Appraisers & Consultants. “All that matters to the real estate market is what happens next.”
The New York state order to stay at home and similar restrictions elsewhere have effectively banned open house and personal property screenings, and “most people won’t go shopping without seeing them,” said Frederick Warburg Peters , the managing director of Warburg Realty. Depending on the duration of the outbreak, the number of new contracts in New York could decrease by more than 70 percent in the second quarter compared to the same period last year.
“We have little or no empirical evidence of what is happening,” said Miller, because the virus outbreak became a factor so late in March. “I have no sense other than that it will be catastrophic.”
The reporting was contributed by Ben Casselman, Patricia Cohen, Stefanos Chen, Carlos Tejada and Daniel Victor.