Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

GLOBAL MARKETS-Safe havens rally, equities slide, as European COVID-19 cases rise

Published 26/03/2021, 03:05 am
© Reuters
EUR/USD
-
XAU/USD
-
US500
-
DJI
-
JPM
-
DX
-
GC
-
LCO
-
CL
-
IXIC
-
US10YT=X
-
CSI300
-
MIWD00000PUS
-
BABA
-
9988
-
9618
-

(Updates through midday U.S. trading)

By David Randall

NEW YORK, March 25 (Reuters) - Safe-haven assets such as the dollar and U.S. Treasuries edged higher while global equity benchmarks and bitcoin slid on Thursday, weighed by rising coronavirus cases in Europe and a selloff that pushed Chinese blue-chip shares to their lowest levels since early December.

Oil prices sank after surging on Wednesday after a container ship became stuck in the Suez Canal. The ship, which a salvage team described as a "beached whale," may block the vital shipping lane for weeks, officials said. L1N2LN0AX

European shares fell on data showing the biggest rise in new confirmed coronavirus cases in Germany since Jan. 9 and the largest number of patients with COVID-19 requiring intensive care in France in the year to date. dollar index =USD hit its highest since November overnight, at 92.697, breaking its 200-day moving average.

The dollar index =USD rose 0.179%, with the euro EUR= down 0.22% to $1.1786.

"The dollar is absolutely critical," said James Athey, investment director at Aberdeen Standard Investments. "If the dollar starts rallying, that becomes a problem. It means commodity weakness and emerging-market weakness and it starts to provide a disinflationary countervailing narrative."

MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.38%, dropping for a second day and was at its lowest in more than two weeks.

Weighing on sentiment was a selloff in Chinese technology shares amid concern they will be delisted from U.S. exchanges on worries about a semiconductor shortage.

In Hong Kong, companies with U.S. listings led declines. JD.com 9618.HK lost 3.57% and Alibaba (NYSE:BABA) 9988.HK fell 3.91%.

China's blue-chip CSI300 index .CSI300 edged 0.05% lower to its lowest close since Dec. 11, weighed by jitters about policy tightening and rising tensions between China and Western countries over allegations of human rights abuses in Xinjiang.

In midday trading on Wall Street, the Dow Jones Industrial Average .DJI fell 105.41 points, or 0.33%, to 32,314.65, the S&P 500 .SPX lost 14.23 points, or 0.37%, to 3,874.91 and the Nasdaq Composite .IXIC dropped 96.60 points, or 0.75%, to 12,865.29.

Benchmark 10-year notes US10YT=RR last fell 1/32 in price to yield 1.6156%, from 1.614% late on Wednesday.

Investors have focused on the 10-year Treasury yield, pondering whether there is room for long-term interest rates to run, said David Kelly, chief global strategist at JPMorgan (NYSE:JPM) Asset Management. know that the economy is primed to begin to really accelerate in the second quarter," Kelly said. "But we haven't seen that acceleration yet, so that's what we're waiting for."

The number of Americans filing new jobless claims fell to a one-year low last week, a sign that the U.S. economy is rebounding from the pandemic.

"We're getting a little softness in the markets on virus-variant jitters, but we're buyers on weakness as the economy gets closer to a full-scale reopening," said Cliff Hodge, chief investment officer for Cornerstone Wealth.

U.S. crude CLc1 recently fell 5.12% to $58.05 per barrel and Brent LCOc1 was at $61.75, down 4.13% on the day.

Spot gold XAU= dropped 0.2% to $1,730.04 an ounce, while bitcoin slid nearly 5%.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Global assets

http://tmsnrt.rs/2jvdmXl Global currencies vs. dollar

http://tmsnrt.rs/2egbfVh Emerging markets

http://tmsnrt.rs/2ihRugV MSCI All Country World Index Market Cap

http://tmsnrt.rs/2EmTD6j

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.