Asian shares stumbled lower in afternoon trade on Friday, reversing earlier gains as rising COVID19 cases in China reinforced investor concerns over the prospects for a global economic recovery.
European bourses were set to open lower. Panregion Euro Stoxx 50 futures dropped 0.66 in early trade, while German DAX futures lost 0.65 and FTSE futures dipped 0.35.
Earlier on Friday, an Asian regional share index had edged near record highs after U.S. Presidentelect Joe Biden proposed a 1.9 trillion stimulus plan to jumpstart the worlds largest economy and accelerate its response to COVID19.
In primetime remarks, Biden outlined a proposal that includes 415 billion aimed at the COVID19 response, some 1 trillion in direct relief to households, and roughly 440 billion for small businesses and communities hard hit by the pandemic.
But that initial boost faded by the afternoon as risk appetite waned, lifting bond prices and the dollar, and hitting regional equities.
When you get to these lofty levels, what does it need to take the market higher again? said Stephen Innes, chief global markets strategist at Axi.
Ultimately, the market has excelled itself. Im not saying its gotten too far over its skis, I dont think it has, but I think the expectations for economic repricing are quite dramatic … were back again to the lack of economic conviction.
Global stocks had initially firmed on Thursday on a report that the stimulus package could be as big as 2 trillion, much more than…