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Bloomberg
US equity futures and European stocks dropped after a resurgence in virus infections slowed down the pace of
business re-openings.
The dollar index climbed to a one-month high, while Treasuries steadied. Trading volume across European shares was below average, with banks and energy producers trending lower. Royal Dutch Shell Plc slumped after announcing it will write down as much as $22 billion as the pandemic hit energy demand. Copper climbed above $6,000 a ton in London.
While improving purchasing-manager indexes in China added to optimism that’s helped lift global equity markets some investors are beginning to question the rally. The MSCI All Country World Index is up about 18% this quarter, the biggest advance in a decade. Yet the World Health Organisation warned that
the worst of the coronavirus pandemic is still to come.
In Australia, Victoria State said it would shutter 10 areas in the metropolis of Melbourne. Arizona also ordered a number of establishments including gyms to close for 30 days and New Jersey halted plans for indoor dining.
Futures on the S&P 500 Index declined 0.4% as of 9:40 am London time and the Stoxx Europe 600 Index dipped 0.3%.
While Germany’s DAX Index decreased 0.2%, the MSCI Asia Pacific Index advanced 0.7%.
The Bloomberg Dollar Spot Index increased 0.2% to 1,224.56 and the euro declined 0.2% to $1.1223.
As the Japanese yen weakened 0.1% to 107.67 per dollar, the British pound fell 0.2% to $1.2277.
While the yield on 10-year Treasuries climbed one basis point to 0.63%, Germany’s 10-year yield dipped one basis point to -0.48% and Britain’s 10-year yield declined two basis points to 0.148%.
West Texas Intermediate crude dipped 0.7% to $39.43 a barrel an gold weakened 0.1% to $1,771.87 an ounce.