(Updates through close of U.S. trading)
By David Randall
NEW YORK, July 13 (Reuters) - World equity benchmarks
reversed course after hitting a five-month peak on Monday while
safe-haven U.S. government bonds and gold gained, as optimism
about a global economic recovery was overtaken by renewed fears
amid record numbers of new coronavirus cases in the U.S.
MSCI's gauge of stocks across the globe .MIWD00000PUS
briefly touched its highest level since February before ending
down 0.29%.
On Wall Street, the Dow Jones Industrial Average .DJI rose
10.5 points, or 0.04%, to 26,085.8, the S&P 500 .SPX lost
29.82 points, or 0.94%, to 3,155.22, and the Nasdaq Composite
.IXIC dropped 226.60 points, or 2.13%, to 10,390.84.
"Equity indices are clearly trying to look through into Q3
and beyond, but with the U.S. struggling to shake off the
coronavirus phase one, this should be factored into equity risk
premia," Raymond James European strategist Chris Bailey said.
Losses accelerated in U.S. afternoon trading after
California ordered new lockdown measures, including shutting
bars and banning indoor dining at restaurants statewide to
combat the surge in infections School districts in
Los Angeles and San Diego announced they will offer online-only
instruction in the fall.
The stock market reversal helped the dollar pare losses,
finishing down less than 0.1% against a basket of major
currencies. The euro, meanwhile, rose 0.5% to $1.135 to maintain
its slow uptrend since late last month. Looming large for the
common currency was a planned EU summit on July 17-18, where
leaders need to bridge gaps on long-term budget and economic
stimulus plans. FRX/
"If an agreement weren't to be reached there, then they
still expect one within weeks. It's worth remembering that there
are a number of complex issues to be worked out," Deutsche Bank
strategist Jim Reid said.
Investors continued to seek the perceived safety of
government bonds. Benchmark 10-year notes US10YT=RR last rose
3/32 in price to yield 0.6234%, down from 0.633% late on Friday.
Super-low rates have been a boon for non-yielding gold,
which hovered near nine-year highs after five straight weeks of
gains. Spot gold XAU= added 0.2% to $1,802.45 an ounce. U.S.
gold futures GCc1 gained 0.38% to $1,811.00 an ounce.
U.S. crude CLc1 recently fell 2.32% to $39.61 per barrel
and Brent LCOc1 was at $42.28, down 2.22% on the day
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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country World Index Market Cap http://tmsnrt.rs/2EmTD6j
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