(Recasts, updates prices)
* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh
By Danilo Masoni
MILAN, Sept 23 (Reuters) - World shares stabilised and the
dollar rose on Wednesday with overnight gains of stay-at-home
Wall Street tech champions helped balance concerns that new
restrictions to counter resurging coronavirus infections will
hurt economic recovery.
First indications from global surveys about economic
activity in September gave a gloomy picture for Europe with
rising COVID-19 infections leading to a downturn in services.
MSCI world equity index .MIWD00000PUS , which tracks shares
in 49 countries, was 0.2% higher by 0821 GMT, while the
pan-European STOXX 600 .STOXX benchmark rose 1.1%.
Tech shares were the strongest gainers in Europe following a
rally overnight in big U.S. tech stocks Amazon AMZN.O ,
Microsoft MSFT.O , and Apple AAPL.O .
"This strong performance on the part of U.S. stocks is
likely to translate into a similarly positive open for European
stocks," said Michael Hewson, analyst at CMC Markets in London.
"However there is rising concern that in light of surging
infection rates across Europe, and the beginnings of a rise in
hospitalisations, that the economic rebound from the lockdown
lows is set to finish the year with a whimper," he added.
The PMI survey showed euro zone business growth ground to a
halt this month as the service industry shifted into reverse,
knocked by a resurgence in coronavirus cases that pushed
governments to reintroduce restrictions.
French business activity slowed to a four-month low in
September, while Germany's private sector continued to recover
from the coronavirus shock. Earlier, MSCI's broadest index of Asia-Pacific shares
outside Japan .MIAPJ0000PUS rose 0.2% for its first gain this
week, but the mood was hardly bullish. Japan's Nikkei .N225
returned from a two-day holiday to slip 0.1%.
Nasdaq futures NQc1 remained near Tuesday's highs, up
0.1%. S&P 500 futures ESc1 were 0.3% higher.
In foreign exchange markets, the standout mover was the
gaining dollar, which was up 0.10% against a basket of six major
currencies .DXY at its highest level since July 27.
"Risk aversion on the back of new COVID-19 infections
affecting Europe more directly remains an important factor this
week," UniCredit strategists said in a note. "This means that
the USD is likely to remain firm in its role as preferred
safe-haven currency."
Meantime the euro EUR= hit a seven-week low and was last
down 0.12% at $1.1693, on concerns about coronavirus infections
and after the tepid European surveys.
Commodities were also weighed down by the robust dollar and
worries linked to economic impact of a second wave of COVID-19.
"A resurgence in cases could prove to be a stumbling block
for the demand recovery, although any lockdowns moving forward
are likely to be more targeted and localised," said ING
commodity strategists Warren Patterson.
Brent crude futures LCOc1 were last down 0.2% at $41.64 a
barrel and U.S. crude futures CLc1 slipped 0.3% to $39.69.
Gold prices touched a six-week low as the dollar
strengthened. Spot gold XAU= fell 1.2% to $1,875.7 per ounce.
In bond markets, Italy's 30-year bond yield fell to a record
low as the country's debt remained supported after local
elections reduced the risk of a snap election.
U.S. bonds were steady, with the yield on benchmark 10-year
U.S. debt US10YT=RR up less than one basis point at 0.6724%
For Reuters Live Markets blog on European and UK stock
markets, please click on: LIVE/
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(Additiona reporting by Tom Westbrook in SINGAPORE
Editing by Tomasz Janowski)