The US is still trying to shake off a massive economic downturn triggered by the pandemic. Yoshinori Shigemi, global strategist at JPMorgan Asset Management said: “The second wave is becoming a theme for markets. The increase in states such as Florida and South Carolina is big enough to be labelled as second wave.”

“Whether there will be a lockdown may vary depending on region.

“It will be a tough decision for politicians. But they probably have no other choice if they are running out of hospital beds,” he said.

The pandemic is accelerating globally with the World Health Organization (WHO) reporting a record increase in global coronavirus cases on Sunday.

“The market has been pricing in a rapid recovery so I doubt there are much upside gains to be made. We now need to see whether the earnings outlook will meet up with expectations,” said Takuya Hozumi, investment strategist at Mitsubishi UFJ Morgan Stanley Securities.

The world’s shares are now traded at the most expensive levels since 2002 compared with projected earnings in the coming 12 months.

U.S. S&P 500 futures ESc1 rose 0.4%, having erased early losses of 1.05%,

Meanwhile Japan’s Nikkei .N225 also eked out gains of 0.1%, similarly recovering from early losses.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was almost flat while mainland Chinese stocks .CSI300 ticked up 0.3% to 3-1/2-month highs.

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6.11 am update: US home prices to defy economic downturn

According to the June 9-19 poll of over 40 housing strategists, house prices will rise 3.0% this year and next, reuters reports.

Three months ago prices were expected to rise 3.4% and 3.2% respectively, making the forecast appear remarkably stable, given the economy is taking its worst hit on record due to the pandemic.



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