GLOBAL MARKETS-World shares sag on pandemic worries; gold features on security bid

GLOBAL MARKETS-World stocks sag on pandemic worries; gold gains on safety bid

(Recasts lead, updates costs, provides quote)

NEW YORK, Oct 14 (Reuters) – World inventory markets largely retreated on Wednesday as a file variety of new coronavirus infections in components of Europe led traders to shift away from dangerous property and go for conventional safe-havens akin to gold.

Issues {that a} resurgence within the COVID-19 pandemic may lead governments to close down economies once more spurred some traders to take earnings in shares, notably following the current rally in fairness markets.

Uncertainty concerning the pandemic was compounded by bulletins on Tuesday that separate trials for a COVID-19 vaccine and a therapy for the sickness have been paused, outweighing a short increase to shares from a constructive earnings report from U.S. funding financial institution Goldman Sachs Group.

Wall Road sentiment took a success after U.S. Treasury Secretary Steven Mnuchin stated a deal for fiscal stimulus would unlikely be reached earlier than the Nov. 3 elections.

Main U.S. inventory indexes gave up early features, and by 1753 GMT, the S&P 500 had fallen 23 factors, or 0.7%, to three,488.88. The Dow Jones Industrial Common dropped 133 factors, or 0.5%, to twenty-eight,554.13, whereas the Nasdaq Composite shed 96 factors, or 0.8%, to 11,767.26.

“The concern is we’re headed again in direction of a lockdown, not a re-opening of economies,” stated Tim Ghriskey, chief funding strategist at Inverness Counsel in New York.

France declared a public well being state of emergency on Wednesday, whereas Italy, Russia and Poland all reported their highest-ever day by day tallies of latest infections.

The pan-European STOXX 600 ended flat at 370.62, whereas markets in Frankfurt and Paris had been flat and down 0.1%, respectively. London, buffeted partly by Brexit angst, dropped 0.6%. World shares slipped 0.3% however remained nearby of the all-time excessive struck on Sept. 3.

Asian shares additionally had a lackluster exhibiting. MSCI’s broadest index of Asia-Pacific shares outdoors of Japan had tracked Wall Road’s losses in a single day to finish a seven-day rally.

The index was final down 0.11%, having toppled from a two-and-a-half-year excessive of 588.76 touched on Tuesday. Chinese language shares closed down 0.7%.

Bolstered by uncertainty across the pandemic, the value of gold, a safe-haven asset, climbed greater than 1% to a excessive of $1,912.51 an oz..

Authorities bonds additionally benefited from investor warning. German bund yields, which transfer inversely to costs, hit their lowest stage since Might, whereas the 10-year U.S. Treasury yield dipped to 0.7256%.

The U.S. greenback softened after pulling its greatest day in three weeks on Tuesday. The greenback index, which measures the buck towards a basket of six main currencies, fell 0.2% to 93.38.

The weaker greenback, which makes oil cheaper for holders of different currencies, supported oil costs.

Issues that gas demand will proceed to falter with rising coronavirus instances in Europe and the US, the world’s greatest oil shopper, dragged on oil costs. Brent and U.S. crude pared earlier features and had been at $43.22 and $40.92 a barrel, respectively.

For Reuters Dwell Markets weblog on European and UK inventory markets, please click on on: LIVE/ (Reporting by Koh Gui Qing; Enhancing by Lisa Shumaker and Leslie Adler)

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