Equities slip as traders wonder whether US legislators will agree on an additional round of fiscal stimulus to support the economy
A trader wears a face mask on the floor of the New York Stock Exchange in New York, the US. REUTERS/LUCAS JACKSON
The mixed sentiment has led to choppy trade in Asia with the index of ex-Japan Asia-Pacific shares shedding 0.76% while Japan’s Nikkei gained 0.2%. Barring a bipartisan deal, the US economy could be left with measures US President Donald Trump called for on Saturday through executive orders to bypass Congress.
On top of hedge selling ahead of the largest-ever 10-year note auction later in the day, bonds have lost some of their safe-haven allure also on the rising hope of vaccines against Covid-19. Investors bought back hospitality industries stocks and other value-oriented shares, leading the old-economy centric Dow Jones to outperform high-flying Nasdaq.“As countries around the world seek to support the economy without harsh measures like lockdowns, investors are reviewing if they can keep value shares underweight,” said Naoya Oshikubo, senior economist at Sumitomo Mitsui Trust Asset Management.
“In today’s instance, the vaccine news is likely not sufficient to change the macro narrative, insofar as it is seen as a medical mistake in advancing too quickly through testing procedures,” he said, referring to the Russian vaccine.
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