Dow Jones Falls on Rising Virus Cases, Hang Seng Vulnerable to a Pullback

Dow Jones futures extend losses in early Asia trading hours after falling three days in a row. The downward momentum appeared to have gained traction amid a rapid rise in the number of new coronavirus cases in several major economies. Meanwhile, dwindling hopes for a US relief package to be inked before next week s presidential election also weighed on sentiment. Even strong Microsoft earnings failed to lift investor confidence. Some 55 out of 62 S&P 500 index constituents, which released earnings on October 27th, have beaten analysts forecasts in terms of earning per share (EPS).

The US registered 74,323 new coronavirus cases on October 26th, marking a significant rebound from 59,691 seen a day before. Similarly, the number of new Covid-19 infections resurged in Germany and France on October 27th, at 11,409 and 33,417 respectively. Yet there appears to be lack of political willingness from the White House to impose stricter social distancing measures before the US election, rendering US equities vulnerable to further selloff should the virus situation worsen.

via www.dailyfx.com