The Malta Independent on Sunday
Global stock markets down as U.S. virus concerns offset Europe rebound hopes
Global equities sank and perceived safe-haven assets like U.S. Treasuries and gold gained on Friday as investors weighed hopes that Europe will continue to rebound from the coronavirus pandemic’s economic damage against concerns over a record surge in new COVID-19 infections in the United States.
The euro zone is “probably past” the worst of the economic crisis, European Central Bank President Christine Lagarde said, while urging authorities to prepare for a possible second wave. There were at least 39,818 new coronavirus cases across the United States on Thursday, the largest one-day increase yet. The governor of Texas temporarily halted the state’s reopening as infections and hospitalizations surged.
MSCI’s gauge of stocks across the globe shed 1.46% following broad declines in Europe and slight gains in Asia. The index is up approximately 40% since its March lows.
Concerns about the economic fallout from the surge in U.S. coronavirus cases helped bolster perceived safe havens. The dollar index rose 0.07%, while benchmark 10-year notes last rose 10/32 in price to yield 0.643%, from 0.674% late on Thursday. Spot gold added 0.5% to $1,769.63 an ounce. U.S. gold futures gained 0.15% to $1,772.50 an ounce.
European stocks closed lower on Friday as losses on Wall Street following a surge in U.S. coronavirus cases added to worries over the pace of the global economic recovery. The pan-European STOXX 600 index fell 0.4% after hovering in positive territory earlier in the session.
Financial markets this week have swung between fears that a resurgence in COVID-19 cases could trigger fresh restrictions and optimism over improving economic data in Europe as many countries relax lockdown measures.
The STOXX 600 recorded a near 2% decline for the week, with travel and leisure stocks lagging the most. UK stocks outperformed their European peers with a 0.2% rise as the British government took more steps to relax the coronavirus lockdown.