Second wave fears lead European markets lower

Global shares were on course on Thursday to end their longest winning streak in over a year, one that has lifted them more than 10%, as the post-U.S. election and coronavirus vaccine bull run paused.

Europe’s main markets opened down 0.7% and Wall Street futures fell. For the first time in November, MSCI’s 49-country world index was in the red. Asia had finished flat. Big Tech had rebounded on Wednesday as investors switched back to winners like Amazon and Netflix. In Europe, investors returned to safe-haven government bonds.

European shares retreated from eight-month highs as surging coronavirus infections raised doubts about a quicker economic rebound and overshadowed several upbeat quarterly earnings reports.

The pan-European STOXX 600 index was down 0.7% by 0804 GMT, taking some of the shine off gains of more than 13% this month that had set it on course for its best monthly performance ever. London’s FTSE 100 fell 0.9% as data showed the UK economy grew by a slower than expected 1.1% in September from August, even before the latest restrictions on businesses. German engineering group Siemens SIEGn.DE shed 3.4% even as it reported betterthan-expected profit at its industrial business in the final set of results overseen by long-standing Chief Executive Joe Kaeser.

Global oil benchmark Brent snapped three consecutive days of gains to dip to $43.46 a barrel, although it remained near a twomonth high.

Traders were tempering expectations of an early release of a COVID-19 vaccine. The International Energy Agency also raised doubts on Thursday about a quick recovery in demand, amid surging infections in Europe and the United States. Most of Europe’s main economies are already grappling with a wave of infections and new social restrictions. New York also ordered bars and restaurants to start closing early on Wednesday after U.S. cases hit records.

The Organization of the Petroleum Exporting Countries also revised its demand forecast on Wednesday, saying global oil demand will recover more slowly in 2021 than previously expected because of rising coronavirus cases.

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.