Global stocks turn lower, with S&P facing 4th week of losses

National and World

Despite signs of a global economic rebound in the third quarter, worries remain the upturn may be running out of steam

screens showing stocks Tokyo, Japan

A woman rides a bicycle past screens showing Japan’s Nikkei 225 index at a securities firm in Tokyo on Friday, Sept. 25, 2020. Asian shares advanced Friday, cheered by a modest rally on Wall Street and rising hopes for fresh stimulus for the U.S. economy.(AP Photo/Hiro Komae)

TOKYO (AP) — Global shares and Wall Street futures turned lower on Friday, meaning U.S. stocks could fall for a fourth consecutive week as investors worry about the economic impact of a resurgence in virus cases and political divisions in the U.S.

The future for the Dow industrials slipped 0.6% while the S&P 500 future lost nearly 0.5%. The S&P 500 has booked losses for three weeks in a row and appears likely to extend that to four.

In Europe, France’s CAC 40 dropped 1.6% to 4,687, while Germany’s DAX fell 1.6% as well, to 12,401. Britain’s FTSE 100 edged 0.4% lower to 5,797.

Despite signs of a global economic rebound in the third quarter, worries remain the upturn may be running out of steam.

House Democrats said they are paring back their proposal for a new stimulus package in an attempt to jump-start negotiations with the Trump administration. Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell have said the government’s top priority should be to provide affordable loans to small businesses and further support for millions of Americans still unemployed.

Paralyzing partisanship has prevented a Congressional renewal of aid, and the recent vacancy on the Supreme Court following the death of Justice Ruth Bader Ginsberg deepened the divide. The renewed optimism that the biggest economy might get another boost carried over into Friday trading.

“This stimulus deal needs to go through,” Stephen Innes of AxiCorp said in a commentary. “With the risks building up everywhere you look, it doesn’t seem to be a great time to be trying to pick the bottom of equity markets, but a stimulus relief bill will go a long way to nudging the market along.”

Japan’s benchmark Nikkei 225 edged up 0.5% to finish at 23,204.62. Australia’s S&P/ASX 200 gained 1.5% to 5,964.90, while South Korea’s Kospi added 0.3% at 2,278.79. Hong Kong’s Hang Seng gave up earlier gains, sinking 0.3% to 23,235.42. The Shanghai Composite index fell 0.1% to 3,219.42.

The market’s momentum has shifted with lightning speed recently. The U.S. presidential election is a big factor, particularly after President Donald Trump’s refusal Wednesday to commit to a peaceful transition of power i f he lost, and rising tensions between the United States and China. Adding to the uncertainty is the question of how soon drugmakers will be able to develop a coronavirus vaccine to stem future waves of outbreaks.

Layered on top of all the myriad concerns are the still-raging coronavirus pandemic and the threat that worsening counts around the world could lead to more business restrictions.

In energy trading, benchmark U.S. crude lost 35 cents to $39.96 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, fell 21 cents to $42.25 a barrel.

The dollar inched up to 105.48 Japanese yen from 105.42 yen Thursday. The euro weakened to $1.1636 from $1.1672.

___

Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

Copyright 2020 Nexstar Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Trending on WKBN.com