The global equity markets are mostly lower. The weakness in the US on Monday appears to be spilling over to the overnight landscape. S&P Futures are down about 20 points to trade around the 4144 area. The market attempted an early rally that peaked out at 4182.75. Since then, spoos have seen steady pressure. A small bounce to the current level was seen after hitting the low of 4129.50.
In Asia, China and Hong Kong fell hard for a second straight day while Japan closed slightly higher. The economic slate was active during the session. China’s Industrial Production topped consensus at 7.5%. February Retail Sales also beat forecasts with a print of 6.7%. The Unemployment Rate may have been troublesome, rising to 5.5% compared to the projection of 5.1%. The lockdown of the city of Shenzhen due to the surge in COVID-19 cases likely overwhelmed sentiment causing the erosion of the markets. In Japan, Auto makers were among the best performing classes with Toyota, Subaru and Nissan advancing 2-5%.
In Europe, the major bourses are under heavy pressure. The resurgence of coronavirus cases in China has caused weakness in travel-related names. Air carriers such as Lufthansa and Air France KLM are down 2-3%. Commodity stocks have fallen out of favor with the recent retreat in underlying metals and energy prices. Miners such as Glencore and Antofagasta are off by 3-4%, while oil stocks like BP and Shell have slid 2-3%.