Equities sink on virus worries

Global equity markets slid on Friday as investors sought direction after this week’s U.S. Federal Reserve meeting and a jump in coronavirus cases in Europe rattled sentiment, while gold rose and safe-haven buying lifted the Japanese yen.

The dollar posted its fifth straight day of declines against the yen as Japan’s monetary policy of yield curve control pushes up real interest rates. U.S. technology-related stocks reversed early gains on Wall Street to extend their losses to a third day, while the S&P 500 and Nasdaq posted a third straight week of declines. The big tech names that have fueled the U.S. rally from a pandemic-induced slump in March - Apple Inc, Microsoft Corp, Amazon.com Inc and Alphabet Inc led equities lower.

Rising coronavirus cases and a dim economic outlook weighed on sentiment. The biggest threat to the euro zone economy is a resurgent pandemic, according to a Reuters poll of economists, who say growth and inflation are more likely to cause negative surprises in the coming year than positive ones.

European countries from Denmark to Greece announced new restrictions on Friday to curb surging coronavirus infections in some of their largest cities, while Britain was reported to be considering a new national lockdown.

Copper touched its highest in more than two years as speculators extended their buying spree on the economic recovery in top metals consumer China while the dollar weakened.

Gold prices gained, buoyed by a weaker dollar and concerns over the economic recovery. Oil prices settled little changed after a Libyan commander said a blockade of Libya’s oil exports would be lifted for a month, while the decline in U.S. equities weighed on futures. Still, both the U.S. and Brent crude benchmarks were set for weekly gains after Saudi Arabia pressed allies to stick to output quotas, Hurricane Sally cut U.S. production, and banks including Goldman Sachs predicted a supply deficit.

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.