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Global Market: Stocks Drift as Second Wave Virus Fears Mount

Kamis, 18 Juni 2020 | 17:33 WIB
Global Market: Stocks Drift as Second Wave Virus Fears Mount

ILUSTRASI. Traders wear masks as they work on the floor of the New York Stock Exchange as the outbreak of the coronavirus disease (COVID-19) continues in the Manhattan borough of New York, U.S., May 27, 2020. REUTERS/Lucas Jackson TPX IMAGES OF THE DAY

Sumber: Reuters | Editor: Narita Indrastiti

People’s Bank of China Governor Yi Gang added, however, that Beijing will need to consider withdrawing that support at some point.

U.S. Federal Reserve Chair Jerome Powell told lawmakers on Wednesday that although the world’s largest economy is beginning to recover, with some 25 million Americans displaced from work and the pandemic ongoing, it will need more help.

Some investors also worried about further paralysis in Washington as Trump’s former national security adviser John Bolton accused him of sweeping misdeeds that included explicitly seeking Chinese President Xi Jinping’s help to win re-election.

Border tensions between North and South Korea, and between India and China, also helped sour sentiment for risky assets.

Investors rushed to the safety of bonds, with the 10-year U.S. Treasuries yield US10YT=RR falling 2 basis points to 0.710%.

“In the near-term, we have had a lot of risk-off factors including Bolton and geopolitical tensions in Asia,” said Masahiko Loo, portfolio manager at AllianceBernstein in Tokyo.

“But on the other hand, risk assets are supported by ample liquidity from central banks. I don’t see that changing yet and do not expect major sell-off in risk assets.”

In currency markets, the safe-haven Japanese yen earlier rose about 0.2% to 106.81 per dollar JPY=, while the U.S. dollar also firmed against risk-sensitive currencies. The euro was also little changed against the greenback at $1.1249 EUR=EBS.

The British pound traded in a narrow range before a Bank of England meeting where policymakers are expected to expand quantitative easing in the face of a weakening economy and tough trade negotiations with the EU.

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