World shares retreat from recent peaks

On Wednesday European stocks and U.S. index futures were negative, and world shares were down from recent record peaks, as markets once more were nervous about the pandemic ahead of the half-year-end and ahead of crucial U.S. jobs data later this week.

Asset markets have been sustained over the past year by trillions of dollars of monetary and fiscal stimulus by central banks and governments around the world in reaction to COVID-19, while vaccination roll-outs in recent months are increasing the economic outlook. However stocks reduced some gains on the last trading day of the month and half-year, among fears about the more contagious coronavirus Delta variant first discovered in India.

Indonesia, Malaysia, Thailand and Australia are all fighting pandemic occurrences and tightening restrictions, and Spain and Portugal announced restrictions for unvaccinated British tourists. European stocks dropped 1% and U.S. S&P futures lost 0.2%. German stocks were down 1.4% and British shares fell 0.67%.

However, the European benchmark, which hit record highs this month, remains on course to declare its biggest first-half percentage gain since 1998.

Euro zone inflation slid in June in line with forecasts but is anticipated to move well above the European Central Bank’s objective towards the autumn on higher commodity prices.

MSCI’s global share index dropped 0.2% but was set for a fifth straight month of gains, a day after hitting an all-time high, and for a gain of more than 11% in the first half.

MSCI’s index tracking Asian shares outside Japan was positioned for a small monthly loss, but still on course for a fifth straight quarterly rise, its longest such streak since 2006-2007. The index was down 0.31%.

Oil prices were heading for monthly and quarterly gains. Brent crude rose 0.7% to $75.30 per barrel and U.S. crude jumped 1% to $73.73, after an industry report showed U.S. stocks fell last week. Spot gold lost 0.19% to $1,754.73 an ounce, putting it on course for its biggest monthly drop since November 2016.

This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.