World shares down after China data misses forecasts

Global shares dipped on Friday after lacklustre Chinese economic data and worries about a delay in U.S. fiscal stimulus discouraged some investors from taking on risk.

European shares were also dragged lower by a hit to travel stocks after Britain added more European countries to its quarantine list. The pan-European STOXX 600 was down 0.7%, although on track to gain for a second straight week. MSCI’s world index was 0.2% lower, drifting further from all-time highs touched in February. The index has still rallied close to 50% from March’s trough in the wake of the COVID-19 pandemic.

Preliminary European employment and GDP numbers and U.S. retail sales figures will be watched for signs of divergence between the U.S. and European recoveries. Data showing a slower-than-expected rise in Chinese industrial production and a surprise fall in retail sales put Asian shares on the backfoot. MSCI’s broadest index of Asia-Pacific shares outside

Japan fell 0.1%, although shares in Japan rose 0.2%. Chinese shares rose 1.5% in choppy trade, with the data suggesting domestic demand is still struggling after the coronavirus outbreak.

Further equity gains are likely to be limited as investors await progress in negotiations over U.S. economic stimulus, which is necessary to prevent a nascent recovery in the world’s largest economy from sliding into reverse. Some traders stuck to the sidelines before a meeting between U.S. and Chinese officials about their Phase 1 trade deal on Saturday.

Spot gold fell 0.35 to $1,947.43 as high U.S. Treasury yields prompted investors to reassess their positions. Bullion has declined more than 4% so far this week, its biggest weekly percentage fall since early March.

Oil edged further below $45 a barrel amid worries about supply recovery and rising supply. Brent crude fell or 0.7% to $44.67, reversing this week’s gains. U.S. West Texas Intermediate slipped 0.6% to $41.99.

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.