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GLOBAL MARKETS-World share markets dip on lukewarm data; oil falls

Published 15/08/2020, 01:51 am
© Reuters.
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* China, U.S. data misses expectations

* Travel stocks sink on British quarantine move

* Treasury yields dip but remain high

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E (Updates prices, changes comment, dateline; previous LONDON)

By Rodrigo Campos

NEW YORK, Aug 14 (Reuters) - Stocks dipped on Friday as data out of China, the euro zone and the United States put a lid on expectations for a sustained global rebound, with traders already worried about a delay in U.S. fiscal stimulus.

European shares were weighed further by a hit to travel stocks after Britain added more European countries, including France, to its quarantine list. pan-European STOXX 600 .STOXX was down 1.17%, although still on track to gain for a second straight week.

On Wall Street, a slowdown in retail sales growth last month and concern over further retracement from consumers weighed on stocks, with the main indexes mixed, though not far from record highs.

The retail sales figures "suggest the recovery has continued to grind on even in the face of the resurgence in virus cases," Michael Pearce, senior U.S. economist at Capital Economics, said in a note.

"The expiry of additional Federal unemployment benefits at the end of July poses a downside risk to spending in the near term," he added, noting that his view is "consumption growth will recover gradually from here."

The Dow Jones Industrial Average .DJI rose 30.44 points, or 0.11%, to 27,927.16, the S&P 500 .SPX gained 1.5 points, or 0.04%, to 3,374.93 and the Nasdaq Composite .IXIC dropped 33.61 points, or 0.3%, to 11,008.90.

MSCI's world index .MIWD00000PUS shed 0.22%, drifting further from all-time highs touched in February. The index has still rallied close to 50% from March's trough despite the COVID-19 pandemic.

The euro zone reported the biggest drop it ever recorded in employment in the second quarter. Data also confirmed a record fall in gross domestic product last quarter and a widening in the euro zone's trade surplus with the rest of the world. showing a slower-than-expected rise in Chinese industrial production and a surprise fall in retail sales put Asian shares on the defensive. broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.2%, although shares in Japan .N225 rose 0.2%.

Chinese shares .CSI300 rose 1.5% in choppy trade, with the data suggesting domestic demand is still struggling after the coronavirus outbreak. on U.S. Treasuries dipped but remained elevated after an auction of 30-year bonds on Thursday met weak demand.

Benchmark 10-year notes US10YT=RR last rose 7/32 in price to yield 0.6931%, from 0.716% late on Thursday.

Some traders stuck to the sidelines before a meeting between U.S. and Chinese officials about the two countries' Phase 1 trade deal on Saturday. ticked lower and was on track for its steepest weekly fall since March, following a string of nine weeks of gains.

Spot gold XAU= dropped 0.6% to $1,940.76 an ounce. Silver XAG= , also on track for a weekly loss after a long string of gains, fell 3.51% to $26.59.

The dollar index was headed for an eighth consecutive week of losses, its longest weekly losing streak in a decade. index =USD fell 0.151%, with the euro EUR= up 0.16% to $1.1831.

The Japanese yen strengthened 0.41% versus the greenback at 106.48 per dollar, while Sterling GBP= was last trading at $1.3104, up 0.31% on the day.

Oil edged further below $45 a barrel, giving up some of this week's gain, under pressure from doubts about demand recovery due to the COVID-19 pandemic and rising supply.

U.S. crude CLc1 recently fell 0.33% to $42.10 per barrel and Brent LCOc1 was at $44.84, down 0.27% on the day.

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

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

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