The ASX starts the week weaker later this morning after Wall Street’s less than ebullient end on Friday.
Growing concerns about COVID-19 infections and deaths across the US, worries about tech and other earnings, and the emergence, once again of higher tensions between China and the US, combined to undermined investor confidence on Thursday and Friday in particular.
Eurozone shares fell 1.8% on Friday and the US S&P 500 fell 0.6% on the back of increasing US/China tensions and concerns over the stuttering US recovery.
The weak global saw ASX 200 futures drop 27 points, or a fall of 0.5%, meaning a soft start to trading later this morning on the ASX.
That was after the ASX 200 lost 70.5 points, or 1.2 percent to end at 6024.0, down 0.2% for the week.
US shares fall 0.3% for the week, Eurozone shares lost 1.6% and Chinese shares fell 0.9%. Japanese shares edged up 0.2% but they were closed on Thursday and Friday.
Bond yields generally fell. Commodity prices were mixed with copper and iron ore down slightly but oil up and gold rising to a record high as the US dollar broke lower (See separate story).
The Australian dollar also rose above 71 US cents as the greenback weakened. It ended at 71.05 US cents on Saturday morning, its highest close since the start of January this year.
US shares closed lower on Friday as the technology-heavy Nasdaq Composite notched its first back-to-back decline since mid-May, still rising tensions between China and the US, the lack of progress on another stimulus bill in Washington and the still rising COVID-19 infection and death toll.
Rising coronavirus cases in 40 American states are increasingly limiting business and consumer activity and threatening the wider economic recovery.
The Dow fell 182.44 points, or 0.7%, to close at 26,469.89 (it was down 450 points in the final half-hour); the S&P 500 index lost 20.03 points, or 0.6%, closing at 3,215.63; and the Nasdaq shed 98.24 points or 0.9% to close at 10,363.18.
The Nasdaq-100 comprising the largest companies in the Nasdaq was down 0.9% at 10,483.13.
For the week, the Dow lost 0.8% lower, the S&P 500 fell 0.3%, and the Nasdaq lost 1.3%. The Nasdaq-100 shed 1.5% for the week. US analysts are now watching this core Nasdaq more closely as concerns grow about stretched valuations.
