Skip to main content

World shares, US futures decline on vaccine, virus worries

Monday, April 12, 2021 | Elaine Kurtenbach, AP Business Writer


People walk past a bank's electronic board showing the Hong Kong share index at Hong Kong Stock Exchange in Hong Kong Monday, April 12, 2021. Asian shares were lower on Monday, as investors grew wary over the recent surge in coronavirus cases in many places while vaccinations are making scant headway. (AP Photo/Vincent Yu)

BANGKOK (AP) — World shares were lower on Monday, as investors grew wary over the recent surge in coronavirus cases in many places while vaccination efforts are making scant headway.

Shares fell in London, Paris, Tokyo and Shanghai. U.S. futures also slipped.

The declines followed a strong end last week on Wall Street, where gains in technology and health cares stocks pushed the S&P 500 and Dow Jones Industrial Average to fresh record highs.

A moderation in bond yields has helped restore confidence that the Federal Reserve will move soon to raise interest rates to keep inflation in check as the economy recovers from the shocks of the pandemic.

Britain's FTSE 100 lost 0.6% to 6,872.56. Germany's DAX edged 0.1% lower to 15,220.38 and the CAC 40 in Paris gave up 0.3% to 6,153.79. The future contracts for the S&P 500 and Dow industrials were 0.3% lower.

In Asia, a resurgence of infections and troubles with COVID-19 vaccines are undermining confidence that vaccinations will soon bring an end to the lockdowns and miseries brought on by the new coronavirus.

China's top disease control official said during the weekend that the effectiveness of Chinese coronavirus vaccines was low and the government is considering mixing them to get a boost. It was a rare admission and comes as the country continues to battle outbreaks of the virus that first was reported in the central Chinese city of Wuhan.

Japan is struggling to get infections under control as it prepares to host the 2020 Tokyo Olympics. Thai health officials are warning the daily rate of new infections could top 28,000 if urgent measures are not taken to counter the country's worst outbreak so far.

“The vaccine rollout remains slow in Asia, but what is more concerning is a renewed divergence in virus caseloads, with second waves taking hold in India, the Philippines and now Thailand," Stephen Innes of Axi said in a report. That “continues to sully the global travel outlook," he said.

The Nikkei 225 in Tokyo lost 0.8% to 29,538.73 and South Korea’s Kospi edged 0.1% higher to 3,135.59. In Hong Kong, the Hang Seng index dropped 0.9% to 28,453.28. Australia’s S&P/ASX 200 gave up 0.3% to 6,974.00 and the Shanghai Composite index sank 1.1% to 3,412.95.

India's Sensex dropped 3.4% to 47,906.75. The country's coronavirus outbreaks have come roaring back, outpacing progress in inoculating its 1.4 billion people.

Shares in South Korea's SK Innovation Co. jumped 12% after it reached a settlement in a trade dispute with rival LG Energy Solution. The companies pledged to work together to strengthen the EV battery supply chain in the U.S., moving ahead with plans to manufacture batteries in Georgia in what President Joe Biden called “a win for American workers and the American auto industry.”

Chinese e-commerce giant Alibaba's shares were 6.5% higher after the company said it was fined $2.8 billion for anti-competitive behavior. The penalty was lower than feared, coming as the ruling Communist Party tightens control over fast-growing technology industries.

On Friday, the S&P 500 rose 0.8% for its fourth record high this week, closing at 4,128.80. The Dow gained 0.9% to 33,800.60, while the Nasdaq composite picked up 0.5%, to 13,900.19.

Small company stocks, which have outgained the broader market this year, lagged behind on Friday. The Russell 2000 index of smaller companies inched up less than 0.1%, to 2,243.47.

The yield on the 10-year U.S. Treasury note, which influences interest rates on mortgages and other loans, was steady at 1.65%. It ended Friday at 1.66% and had been as high as 1.75% last Monday.

Investors are showing cautious optimism about the economic recovery, especially in the U.S., where vaccine distribution as been ramping up and President Joe Biden has advanced the deadline for states to make doses available to all adults to April 19.

Investors are turning their attention to quarterly results as earnings season gets underway. The major banks are among the first to report their results, including JPMorgan, Wells Fargo and Bank of America. Analysts polled by FactSet have hiked their profit forecasts during the quarter. They expect growth of just over 24%, compared with the view back in September that companies in the S&P 500 would see 13% growth.

In other trading, U.S. benchmark crude oil rebounded, gaining 10 cents to $59.42 per barrel in electronic trading on the New York Mercantile Exchange. It lost 28 cents to $59.32 per barrel on Friday. Brent crude, the international standard, added 24 cents to $63.19 per barrel.

The U.S. dollar bought 109.46 Japanese yen, down from 109.71 yen on Friday. The euro slipped to $1.1885 from $1.1899.

Featured Article: What is the Shanghai Stock Exchange Composite Index?


7 Stocks to Buy For the Gig Economy

Before the global pandemic, it was referred to as a side hustle—a way for some individuals to make a little extra money. However, as the pandemic has changed the nature of how we work, and as consumers how we spend, the gig economy has become an essential way of life for many workers.

There is much that’s not known about the long-term effects of the pandemic. But if there’s one lesson we learn from history, it’s that there will be ripple effects. We believe that society will get back to something resembling normal. However, what that normal looks like may be different.

Americans were becoming less social since before the pandemic. Now consumers have begun to realize there truly is no reason to leave their house to shop for anything. And while many crave physical connection during these times, there will be many that have changed their purchasing habits for good.

Other elements of the gig economy, such as ride-hailing and home rentals, were devastated due to the pandemic. Those businesses are likely to come back.

And that’s why companies that have created the gig economy aren’t going away anytime soon. In this special report, we’ll highlight several stocks that investors should consider as the gig economy moves forward.

View the "7 Stocks to Buy For the Gig Economy".


Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Wells Fargo & Company (WFC)2.0$47.90+2.0%0.84%129.46Buy$40.45
JPMorgan Chase & Co. (JPM)2.5$164.67+0.4%2.19%21.53Buy$147.99
Bank of America (BAC)2.4$42.74+0.9%1.68%21.16Buy$37.84
Compare These Stocks  Add These Stocks to My Watchlist 

MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau

© American Consumer News, LLC dba MarketBeat® 2010-2021. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information

© 2021 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research. As a bonus to opt-ing into our email newsletters, you will also get a free subscription to the Liberty Through Wealth e-newsletter. You can opt out at any time.