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GLOBAL MARKETS-Stocks mostly dip as virus restrictions increase; sterling weakens

Published 08/12/2020, 03:30 am
Updated 08/12/2020, 03:36 am
© Reuters.
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* S&P 500 slightly lower early, Nasdaq climbs

* Brexit jitters send sterling down

* U.S. bond yields ease (Updates with early U.S. markets activity, changes dateline, previous MILAN)

By Caroline Valetkevitch

NEW YORK, Dec 7 (Reuters) - Stocks on global indexes mostly eased on Monday as worries increased over the economy because of increased restrictions due to COVID-19, while sterling slumped as Britain and the European Union made a last-ditch attempt to strike a trade deal.

After surging to a fresh all-time high earlier on Monday, the MSCI world equity index < .MIWD00000PUS>, which tracks shares in 49 countries, was last down 0.1%. The U.S. benchmark S&P 500 was also down slightly in early New York trading, retreating from its recent record, while the Nasdaq gained.

Authorities in California, the most populous state in the United States, on Monday compelled much of the state to close shop and stay at home the day after it reported a record 30,000-plus new coronavirus cases. think what you are seeing today is a focus on the short term with the shutdown, which is why technology is leading the way," said Christopher Grisanti, chief equity strategist at MAI Capital Management in Ohio.

Investor eyes also continue to be on negotiations between U.S. Republicans and Democrats for approval of further coronavirus relief. Dow Jones Industrial Average .DJI fell 139.6 points, or 0.46%, to 30,078.66; the S&P 500 .SPX lost 3.96 points, or 0.11%, to 3,695.16 and the Nasdaq Composite .IXIC added 64.58 points, or 0.52%, to 12,528.81.

Expectations of a U.S. stimulus aid package gathered pace after weak payrolls data on Friday and following a bipartisan proposal on a $908 million package last week that leaders on both sides appeared open to agreeing to. pan-European STOXX 600 index .STOXX lost 0.33%.

British and European Union negotiators were trying to bridge stubborn differences standing in the way of a post-Brexit trade deal, but they had at best 48 hours to avoid a disorderly parting of ways at the end of this month. fell in a sentiment reversal from Friday when the British currency rose to 19-month high against the dollar. Sterling GBP= was last trading at $1.3337, down 0.74% on the day.

The dollar index =USD fell 0.062%, with the euro EUR= up 0.11% to $1.2133.

Investors also await an EU summit starting Thursday to break an impasse over a 1.8 trillion-euro coronavirus aid package, as well as the last European Central Bank policy meeting of the year on the same day.

In the bond market, yields on most U.S. Treasuries fell as rising coronavirus caseloads drove investors to buy the safe-haven securities. 10-year notes US10YT=RR last rose 11/32 in price to yield 0.9344%, down from 0.969% late on Friday.

U.S. crude and Brent futures CLc1 LCOc1 eased, while spot gold prices XAU= gained.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates in 2020

http://tmsnrt.rs/2egbfVh 2020 asset performance

http://tmsnrt.rs/2yaDPgn

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