Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

GLOBAL MARKETS-U.S. shares retreat on renewed pandemic fears, safe-havens rise

Published 20/06/2020, 06:16 am
© Reuters.
EUR/USD
-
USD/JPY
-
XAU/USD
-
US500
-
DJI
-
SPY
-
AAPL
-
DX
-
GC
-
LCO
-
CL
-
IXIC
-
DE10YT=RR
-
US10YT=X
-
STOXX
-
MIWD00000PUS
-

(Adds close of U.S. markets)

* Apple temporarily closes store due to rising coronavirus cases

* Gold gains on safe-haven demand, rises above $1,750 oz

* Dollar gains, bond yields slide on safe-haven demand

* Oil trims gains but closes higher

By Herbert Lash

NEW YORK, June 19 (Reuters) - Demand for safe havens rose and global equity markets turned south on Friday after Apple Inc said it would temporarily shut 11 U.S. stores as coronavirus cases continue to rise, rekindling fears of a deadly second wave of the pandemic.

News of Apple's AAPL.O move involving stores in Florida, Arizona, South Carolina and North Carolina doused hopes for a quick economic recovery that had spurred risk appetite earlier in the day, driving up European and U.S. stocks about 1%.

Treasury yields fell and the dollar rebounded from early losses as it posted its best weekly gain in a month. Gold rose more than 1%, with futures settling above the technical barrier of $1,750 an ounce, a breakout that should push bullion higher.

Apple's decision portends more restrictions coming back as coronavirus cases rise and the reopening process stalls, said Edward Moya, senior market analyst at currency brokerage OANDA.

The $1,750 mark "has been a big barrier for gold and speaks strongly that the safe-haven trade is not going away anytime soon," Moya said.

Stocks in Europe pared some gains but closed higher before the Apple news broke. Investors remained hopeful that a massive 750 billion euro stimulus package will soon be passed, though European Union leaders made little progress in negotiations.

The Nasdaq's early surge above the 10,000 mark had put the tech-heavy index on track to a record closing high, but Apple's announcement foiled that milestone even though Nasdaq closed moderately higher.

MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.20% while the pan-European STOXX 600 index .STOXX closed up 0.56%. Emerging market stocks rose 0.60%.

On Wall Street, the Dow Jones Industrial Average .DJI fell 204.38 points, or 0.78%, to 25,875.72. The S&P 500 .SPX lost 17.22 points, or 0.55%, to 3,098.12 and the Nasdaq Composite .IXIC added 3.07 points, or 0.03%, to 9,946.12.

Investors have been tugged in opposite directions by improving economic data and new outbreaks of COVID-19 infections. California, North Carolina and a string of U.S. cities have mandated or urged mandatory mask use to contain spiraling coronavirus cases. China reported 32 new coronavirus cases as of the end of June 18, 25 of which were reported in Beijing, China's National Health Commission said. prices pulled back sharply from early highs on concerns the pandemic's continued spread could hamper the recovery.

Boston Federal Reserve President Eric Rosengren said more fiscal and monetary support for the U.S. economy will likely be needed, echoing comments by the European Central Bank chief, who said the EU's economy was in a "dramatic fall." futures LCOc1 rose 68 cents to settle at $42.19 a barrel while U.S. crude CLc1 settled up 91 cents at $39.75.

ECB President Christine Lagarde called on EU leaders to agree on their recovery plan quickly, diplomatic sources and officials said. The leaders are divided over its final size but hope a deal will be struck in July.

The dollar index =USD rose 0.193%, with the euro EUR= down 0.16% to $1.1184 and the Japanese yen JPY= up 0.15% versus the greenback at 106.83 per dollar.

Demand for German government debt was little changed, with the benchmark 10-year Bund yield at -0.415% DE10YT=RR .

Benchmark 10-year notes US10YT=RR rose 0.1 basis points to yield 0.6954%, coming off higher yields of 0.745% earlier in the session.

U.S. gold futures GCv1 settled 1.3% up at $1,753 an ounce.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Emerging markets

http://tmsnrt.rs/2ihRugV World stocks vs. COVID-19 confirmed cases

https://tmsnrt.rs/2YSK5b4

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

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.