© Reuters. People wearing face masks, after the corona virus broke out, were reflected on a screen showing the Nikkei index, outside a brokerage firm in Tokyo.
By Simon Jessop
LONDON (Reuters) – World stocks fell further and oil headed for a weekly double-digit slide on Friday as worries about rising global COVID-19 infection rates and US presidential elections next week offset Strong quarterly growth data for the euro zone.
The strong central bank-driven rebound back from the initial pandemic slide earlier this year has stalled this week, with fears of an even worse second wave of infections, especially especially in Europe, causing the market to depreciate.
Mark Dowding, chief investment officer at BlueBay Asset Management.
World stocks () fell 0.3% at 09.25 GMT, tracking weakness in Asia, while US stocks futures () () fell 1% to 1.3%. Gold rose, with spot prices up 0.3% to $ 1,873 / ounce.
In Europe, the EuroSTOXX 50 () blue-chip fell 0.7% to bring the weekly loss down to 6.9% and to stay at the level last seen at the end of May. MSCI’s widest ocean outside of Japan () closed down 1.2% with a weekly decrease of 2.2%, breaking four consecutive weeks of gains.
“New lockouts across Europe are being rigorously priced by the market” Barclays (LON 🙂 stock strategist Emmanuel Cau said in a note to customers.
“With the complacency going fast, one drop could eventually yield another good entry point, but it depends a lot on the election results and the timing of the results.”
European government bond yields rose under new COVID restrictions across the continent, with Italy, Spain and Germany’s 10-year debt yields all rising 1 to 2 basis points.
While Brent crude () rose sharply near noon in London – up 0.5% and overall on par with its US peers () – it was still down sharply for the week, facing levels loss of nearly 10%.
That led to a widespread sell-off of currencies involved in commodities including the Russian ruble
Image: Stocks, oil and coronavirus cases https://fingfx.thomsonreuters.com/gfx/mkt/jbyprxdzope/Pasted%20image%201604051261032.png
Weak sentiment drags Europe down despite strong euro zone quarterly GDP figures showing – up 12.7% – a day after the European Central Bank pledged to provide much support. to the economy upon its next meeting in December to help combat potential economic impacts from the pandemic.
Societe Generale (OTC 🙂 analyst Kit Juckes FX says that with the imposition of a new close in France recently, the positive growth data there – up 18.2% QoQ – is not enough to Get over any virus concerns.
This week, for the first time, worldwide coronavirus infections have increased by more than 500,000, with France and Germany preparing to close a new shutdown.
In response, analysts expect the expansion and prolongation of the ECB’s Pandemic Emergency Purchasing Program, lower deposit base rate and even more generous loan terms for banks. found in December.
The announcement sent the euro () to a 4-week low of $ 0.1648 before rebounding slightly on Friday to trade at $ 1.1679, down about 0.4% since the start. month.
Meanwhile, the index () remained steady, underpinned by a solid session on Wall Street overnight after some strong tech returns and data showed the US economy. growth at a record annual rate of 33.1% in the third quarter.