GLOBAL MARKETS-World stocks take fresh dip as COVID infection rate weighs

GLOBAL MARKETS-World stocks take fresh dip as COVID infection rate weighs

Reuters  | Oct 30, 2020 17:00

GLOBAL MARKETS-World stocks take fresh dip as COVID infection rate weighs

(Recasts from Europe)
* MSCI World index down 0.3%, follows Asia dip overnight
* Dollar steady, euro near recent lows as more stimulus eyed
* COVID-19, U.S. election prompt pre-weekend caution

By Simon Jessop and Swati Pandey
LONDON/SYDNEY, Oct 30 (Reuters) - World stocks slipped
further on Friday and save havens got a fillip as jitters over a
rising global COVID-19 infection rate and next week's U.S.
presidential election weighed on sentiment.
A strong central bank-fuelled bounce back from the initial
pandemic slide earlier in the year has faltered this week with
concerns about an even worse second wave of infections,
particularly in Europe, taking the froth off markets.
World stocks .MIWD00000PUS were down 0.3% at 0717 GMT,
tracking weakness in Asia and giving a nod to a likely weaker
open on Wall Street later in the day. Gold rose, with spot
prices climbing 0.2% to $1,871 an ounce.
In Europe, the blue-chip EuroSTOXX 50 .STOXX50E was down
0.6% to take its weekly loss to 6.8% and leaving it at levels
last seen in late May.
MSCI's broadest index of Asia-Pacific shares outside of
Japan .MIAPJ0000PUS was last down 1.2%, on track to break a
run of four straight weeks of gains.
U.S. stock futures ESc1 NQc1 , meanwhile, were pointing to
drops of around 1.4% to 1.9%.
"New lockdowns across Europe are being harshly repriced by
markets," Barclays equity strategist Emmanuel Cau said in a note
to clients.
"With complacency going fast, this dip could end up offering
another good entry point, but a lot depends on the election
outcome and timing of the results."
The weak sentiment dragging Europe lower came despite the
previous day's pledge for more help from the European Central
Bank when it next meets in December to help counter the
potential economic hit from the pandemic.
This week has seen global coronavirus cases rose by over
500,000 for the first time, with France and Germany prepping
fresh lockdowns. In response, analysts expect an expansion and extension of
the ECB's Pandemic Emergency Purchase Programme, a lower deposit
facility rate, and even more generous lending terms for banks in
The announcement sent the euro EUR= sliding to a four-week
low of $0.1648 before recovering slightly on Friday to trade at
$1.1668, down around 0.4% since the start of the
month. The dollar index =USD , meanwhile, held steady, bolstered
by a solid session on Wall Street overnight after strong
quarterly reports from some of the leading tech giants and data
showing the U.S. economy grew at a record annualised pace of
33.1% in the third quarter. "Even with the rebound, U.S. output remains 3.5% below its
pre-COVID levels. The path towards recovery is much less clear
from here, especially as the number of virus cases grows and
there are near-term impediments to a fiscal deal," wrote ANZ
analysts in a note.
Brent crude was also flat in early Europe deals LCOc1
while U.S. crude CLc1 was up 0.2% at $36.27. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Global assets
Global currencies vs. dollar
Emerging markets
MSCI All Country Wolrd Index Market Cap

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