Premarket: Global stocks and oil gain despite surging coronavirus cases - The Globe and Mail

Canada’s main stock index opened lower on Friday, dragged by the energy sector tracking oil prices as concerns about rising coronavirus cases in the United States and China dented hopes of recovery for fuel demand.

At 9:31 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was down 44.32 points, or 0.29%, at 15,401.82.

Wall Street’s main indexes opened lower on Friday as the United States set a new record for a one-day increase in coronavirus cases and bank stocks fell following the Federal Reserve’s move to cap shareholder payouts.

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The Dow Jones Industrial Average fell 103.91 points, or 0.40%, at the open to 25,641.69.

The S&P 500 opened lower by 10.56 points, or 0.34%, at 3,073.20. The Nasdaq Composite dropped 21.88 points, or 0.22%, to 9,995.12 at the opening bell.

U.S. lenders Bank of America Corp, JPMorgan Chase & Co, Goldman Sachs fell after the Fed limited dividend payments and barred share repurchases until at least the fourth quarter following its annual stress test.

In the previous session, banks stocks had powered Wall Street’s main indexes higher, helping them offset investor fears due to rising virus infections in several U.S. states.

The uptick in cases has also threatened to derail a strong rally for Wall Street that brought the S&P 500 within 9% of its February all-time high on the back of record government stimulus measures.

“There’s a fight in the market between folks who believe that the economic resurgence is unstoppable and those who believe that there is more trouble ahead,” said Christopher Grisanti, chief equity strategist at MAI Capital Management in Cleveland, Ohio.

“It’s more probable that the scenario is not as rosy as the market thinks.”

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Oil prices dipped on Friday, erasing earlier gains, as concerns about rising new coronavirus cases in the United States and China and expectations of U.S. output ticking up while crude stockpiles linger at record highs.

Brent crude futures were 17 cents lower at $40.88. U.S. West Texas Intermediate (WTI) crude futures were 39 cents at $38.33, erasing previous gains.

The contracts are on track for weekly falls of around 3% and 3.5%, respectively, after record U.S. crude inventory data dragged prices down on Wednesday.

Earlier gains, supported by some optimism over rising road traffic boosting fuel demand, were erased in early U.S. trading.

“Markets have got ahead of themselves and with the coronavirus pandemic still doing the rounds, there remains plenty of volatility on the horizon,” PVM analysts said.

Reuters.

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2020-06-26 10:14:57Z
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