Global Shares Fall as Pandemic's Damage Starts to Show in Gloomy Data

By Stuart Condie and Avantika Chilkoti

Stocks declined Friday, after U.S. markets slipped on spending and unemployment data that illustrated the reach of the coronavirus pandemic.

S&P 500 stock-index futures fell 2.2%, suggesting U.S. markets could open lower.

The benchmark Stoxx Europe 600 index lost 0.6%, dragged lower by U.K. markets, with the FTSE 100 losing 2.3%.

Elsewhere, Japan's Nikkei 225 fell 2.8% and Australia's S&P/ASX 200 was 5% lower, with gloomy manufacturing data helping put it on track for its worst day in five weeks. Markets in mainland China, Hong Kong and South Korea are closed for a holiday.

Sentiment was damped Thursday by U.S. government data showing consumer spending fell 7.5% in March, the steepest monthly decline in records tracing back to 1959. Spending by Americans accounts for more than two-thirds of total output.

Weekly jobless claims in the U.S. also hit 3.8 million in the week to April 25, bringing the total number of claims to more than 30 million since mid-March. Claims were lower for a second straight week, but some market observers fear a second wave of coronavirus layoffs by companies looking to cut costs.

Nonetheless, U.S. stocks closed out their best month in decades. The S&P 500 was up 13% for April, and 30% since bottoming on March 23.

"People have locked in that performance for the month and have done pretty well. If you have been involved in the market, there's a few reasons to take a little bit off the table and a pullback would be healthy," said Chris Weston, head of research for Pepperstone brokerage in Australia.

He said Apple Inc.'s failure to give guidance in an otherwise healthy post-market earnings update also added to the uncertainty.

"These markets have had a huge run based on liquidity and I think we need new news here to feed the beast," he said.

On Thursday, the Dow Jones Industrial Average fell 1.2%, the S&P 500 fell 0.9% and the Nasdaq Composite slipped 0.3%.

The U.S. has reported nearly 1.07 million infections and more than 63,000 deaths from the new coronavirus, according to Johns Hopkins University. Globally, the total number of confirmed cases was more than 3.25 million, and the death toll was about 233,400.

Brent crude, the global oil benchmark, rose slightly to $26.53 a barrel.

The yield on the 10-year U.S. Treasury note fell slightly to 0.619%, after settling at 0.625% in the previous session. Yields fall as bond prices rise.

Write to Avantika Chilkoti at Avantika.Chilkoti@wsj.com

(END) Dow Jones Newswires

May 01, 2020 04:00 ET (08:00 GMT)

FTSE 100
指数チャート
から 3 2024 まで 4 2024