World shares modestly higher as investors mull coronavirus, recovery outlook

Global equity markets rose in choppy trading on Friday as concerns triggered by the U.S. Federal Reserve’s less-thanoptimistic outlook for an economic recovery and a jump in U.S. coronavirus cases gave investors pause.

The three major U.S. stock indexes rose by at least 1%, a day after the market’s worst singleday drop in three months. MSCI’s gauge of stocks across the globe gained 0.34%.

Worldwide health officials expressed concerns this week that countries, grappling with the devastating economic impact of lockdowns meant to stem coronavirus’s spread, are lifting restrictions too swiftly and risking a resurgence in cases.

Earlier this week, the Fed predicted a 6.5% decline in U.S. output this year and said an economic recovery is some time off. The Dow Jones Industrial Average rose 1.9%, the S&P 500 gained 1.31% and the Nasdaq Composite added 1.01%. Despite that, all three major indexes suffered their biggest weekly percentage declines since the week ended March 20.

European shares closed slightly up on Friday after heavy losses in the previous session, but marked their worst week since the peak of the coronavirus selloff due to persistent concerns over the pace of an economic recovery.

The pan-European STOXX 600 index ended 0.3% higher, after clocking its worst single-day loss since March 23 in the previous session. The index has lost about 5.7% for the week, with travel and leisure stocks the worst performers as fears of a second wave of coronavirus infections in the United States rattled sentiment.

Markets had come off threemonth highs through the week, with the sell-off intensifying on Thursday after the U.S. Federal Reserve pointed to a long road to economic recovery for the world’s largest economy.

Spot gold rose 0.2% up about 2.7% this week. U.S. crude oil futures settled at $36.26 a barrel, down 8 cents or 0.22 percent. Brent crude futures settled at $38.73 a barrel, up 18 cents or 0.47%.

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.