Global stocks and oil down on increased COVID-19 infections concerns

A slump in global shares extended to its fourth day running on Friday and oil tumbled over growing concerns that a resurgence of coronavirus infections could stunt the pace of recovery from lockdowns.

MSCI’s 49-country index of world stocks slipped 0.5% to an 11-day low, while MSCI’s broadest index of Asia-Pacific shares outside Japan sank 1.3%.

In Europe, the STOXX 600 Index swung between gains and losses after opening. After swinging both ways after the open, the pan-European STOXX 600 index rose 0.7%, rebounding from its worst single-day loss since March 23 in the previous session. Battered shares of automakers, banks, travel and leisure and oil and gas companies - most geared to economic growth - rose between 1.5% and 2.4%.

Healthcare and telecoms were the only two sectors in the red. Risk assets took a dive this week as a sober economic outlook from the U.S. Federal Reserve and rising Coronavirus cases in the United States reminded investors that the economic damage due to the pandemic is far from over.

The STOXX 600 is on course for a 5.3% weekly loss after four straight weeks of gains and nearly 18% below an all-time high hit in February.

Royal Dutch Shell, BP and Total rose nearly 2% despite a drop in oil prices. France’s Interparfums surged 11.5% after Italy’s Moncler entered an agreement with the company to start selling perfumes.

Oil futures slumped for a second consecutive trading session due to worries about weak global energy demand, which weighed on the currencies of oil producers and countries that rely on exporting commodities.

The Chinese yuan headed for its biggest daily decline in two weeks, underscoring investors’ risk-averse mood in Asia. That was after the three major U.S. stock indexes posted their worst day on Thursday since midMarch, when markets were sent into freefall by the abrupt economic lockdowns put in place to contain the pandemic.