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GLOBAL MARKETS-Stocks jittery as record U.S. virus count weighs on risk appetite

Published 10/07/2020, 11:47 pm
Updated 10/07/2020, 11:48 pm
© Reuters.
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By David Randall

NEW YORK, July 10 (Reuters) - Global equity benchmarks slid and oil prices flat-lined on Friday as investors weighed a record number of new coronavirus cases in the United States against improving economic data in Europe.

More than 60,500 new coronavirus infections were reported across the United States on Thursday, the largest single-day tally of cases by any country since the virus emerged late last year in China. sharp increase in confirmed cases has led to growing concerns that a return to broad lockdowns lies ahead," Goldman Sachs (NYSE:GS) wrote in a note. "While lockdowns can slow down virus spread effectively, they come at very high economic cost."

Economic data, however, continued to improve in the United States and Europe. The number of Americans filing for jobless benefits dropped to near a four-month low last week, and Italian industrial output rebounded much more strongly than expected in May after plunging in the previous two months due to a coronavirus lockdown dispersion in macro forecasts remains extremely high. It therefore should not surprise when you see market volatility turning on mixed pieces of news," said Elliot Hentov, head of policy and research at State Street (NYSE:STT).

MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.28% following broad gains in Europe and slight losses in Asia. Chinese shares .CSI300 fell 1.8% from a five-year high, as state media discouraged retail investors from chasing the market higher.

In morning trading on Wall Street, the Dow Jones Industrial Average .DJI fell 64.74 points, or 0.25%, to 25,641.35, the S&P 500 .SPX lost 7.44 points, or 0.24%, to 3,144.61 and the Nasdaq Composite .IXIC dropped 51.57 points, or 0.49%, to 10,496.18.

Cases of the COVID-19 respiratory illness have also been rising in some Asian and Australian cities that had appeared to have contained the disease, such as Tokyo, Hong Kong and Melbourne, prompting investors to move into perceived safe havens.

U.S. Treasury yields US10YT=RR slipped to their lowest levels since late April. Benchmark 10-year notes US10YT=RR last rose 2/32 in price to yield 0.6004%, from 0.605% late on Thursday. Spot gold XAU= added 0.3% to $1,808.99 an ounce. U.S. gold futures GCc1 gained 0.35% to $1,805.50 an ounce.

The International Energy Agency bumped up its 2020 oil demand forecast on Friday but said the spread of COVID-19 posed a risk to the outlook. crude CLc1 fell 0.05% to $39.60 per barrel and Brent LCOc1 was at $42.30, down 0.12% on the day.

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