Asian shares slipped, extending a pullback from multi-year highs hit last week on fears a highly infectious new strain of Covid-19 that shut down UK could lead to a slower global economic recovery
NEW YORK (Reuters) - Asian shares were poised for a weaker start on Tuesday, while oil prices fell, as investors worried a highly infectious new strain of COVID-19 that shut down much of Britain could lead to a slower economic recovery.
Australian S&P/ASX 200
lost 0.54% in early trading. Japan's Nikkei 225 slipped 0.58%.
E-mini futures for the
S&P 500 dipped 0.05%, after U.S.
stocks mostly recovered from steep, early declines.
The question now is whether
that stabilization seen during the U.S. market session will carry over to Asia,
said Kyle Rodda, Market analyst, IG Markets.
"What we're really
feeling out in the markets more broadly is whether the bearishness we saw
sweeping though in European trade is reflective of a broader pullback in the
market. If this is a sign of things to come, or whether it's merely a
short-term shock to the system to the developments in the UK, the new virus
strain," he said.
Countries across the globe
shut their borders to Britain on Monday due to fears about a new strain of
coronavirus, said to be up to 70% more transmissible than the original, causing
travel chaos and raising the prospect of food shortages days before Britain is
set to leave the European Union.
The discovery of the new
strain, just months before vaccines are expected to be widely available,
renewed fears about the virus, which killed about 1.7 million people worldwide.
Oil prices dropped on
expectations of lower demand, with U.S. crude recently down 0.25% at $47.85 per
barrel, while Brent was 2.79% lower at $50.80.
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