AGL 36.51 Decreased By ▼ -1.49 (-3.92%)
AIRLINK 216.01 Increased By ▲ 2.10 (0.98%)
BOP 9.46 Increased By ▲ 0.04 (0.42%)
CNERGY 6.59 Increased By ▲ 0.30 (4.77%)
DCL 8.50 Decreased By ▼ -0.27 (-3.08%)
DFML 40.90 Decreased By ▼ -1.31 (-3.1%)
DGKC 99.48 Increased By ▲ 5.36 (5.69%)
FCCL 36.48 Increased By ▲ 1.29 (3.67%)
FFBL 88.94 No Change ▼ 0.00 (0%)
FFL 17.17 Increased By ▲ 0.78 (4.76%)
HUBC 126.25 Decreased By ▼ -0.65 (-0.51%)
HUMNL 13.35 Decreased By ▼ -0.02 (-0.15%)
KEL 5.24 Decreased By ▼ -0.07 (-1.32%)
KOSM 6.71 Decreased By ▼ -0.23 (-3.31%)
MLCF 44.24 Increased By ▲ 1.26 (2.93%)
NBP 60.50 Increased By ▲ 1.65 (2.8%)
OGDC 222.49 Increased By ▲ 3.07 (1.4%)
PAEL 40.60 Increased By ▲ 1.44 (3.68%)
PIBTL 8.16 Decreased By ▼ -0.02 (-0.24%)
PPL 191.99 Increased By ▲ 0.33 (0.17%)
PRL 38.60 Increased By ▲ 0.68 (1.79%)
PTC 27.00 Increased By ▲ 0.66 (2.51%)
SEARL 103.50 Decreased By ▼ -0.50 (-0.48%)
TELE 8.62 Increased By ▲ 0.23 (2.74%)
TOMCL 34.86 Increased By ▲ 0.11 (0.32%)
TPLP 13.60 Increased By ▲ 0.72 (5.59%)
TREET 24.99 Decreased By ▼ -0.35 (-1.38%)
TRG 71.99 Increased By ▲ 1.54 (2.19%)
UNITY 33.33 Decreased By ▼ -0.06 (-0.18%)
WTL 1.72 No Change ▼ 0.00 (0%)
BR100 11,987 Increased By 93.1 (0.78%)
BR30 37,178 Increased By 323.2 (0.88%)
KSE100 111,351 Increased By 927.9 (0.84%)
KSE30 35,039 Increased By 261 (0.75%)
Markets

World stocks ease further from highs, oil dips on COVID-19 count

  • MSCI World down for third straight day.
  • COVID-19 infection rates suge in United States, Japan.
  • Oil down, dollar up slightly; Fed action eyed.
Published November 19, 2020

LONDON: World stocks eased for the third day in a row and oil fell on Thursday, tracking weakness in Asia and on Wall Street as widening COVID-19 restrictions weighed on market sentiment.

Positive news about potential vaccines had helped push the MSCI World Index to a record high earlier in the week, only for investors to pull back as a host of countries announced record infection rates and tougher lockdowns.

At 1053 GMT, the broad gauge of global equities was trading down 0.4% while Europe's major indexes were down 0.8%-1%. Oil prices also fell 1-1.6% as virus restrictions crimped demand expectations.

The weaker sentiment was triggered by a late US sell-off that saw the S&P 500 close down 1.1% following news that COVID-19 deaths in the world's biggest economy had passed 250,000, underpinning a host of lockdowns.

Similarly sombre news in Japan, which saw a record number of cases and a rise in Tokyo's pandemic alert level, sent the Nikkei down 0.4%. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.8%.

"The markets probably overshot the vaccine news and are probably just retreating slightly now because case numbers are going up," said Gavin Rochussen, chief executive of UK-based asset manager Polar Capital.

"The vaccine will take time to be delivered, to be administered and so on, and I think what's happening is markets are realising that ... it's not just the silver bullet, it will take time."

The positive vaccine news had continued yesterday after Pfizer said its COVID-19 vaccine was 95% effective and it would apply for emergency US authorization within days, following a similar recent report from Moderna.

Wall Street futures suggested more to come, down 0.3%, with all eyes on the US Federal Reserve for signs it could step in with fresh monetary stimulus -- something two officials nodded to on Wednesday..

Investors will also await US jobs data at 1330 GMT.

Against a basket of currencies the dollar was last at 92.621 , near its weekly opening high. Euro/dollar shed 0.2% to last trade at $1.1827.

"The vaccines news are a positive medium-term impulse for the global economic outlook and investors are trying to weigh that against the prospect of an imminent stalling of the European and US recovery amid the prospect of extensions of current lockdown measures," said Rodrigo Catril, a senior FX strategist at NAB.

Sterling weakened, down 0.4% against the dollar and 0.2% per euro, on a report Europe's leaders would demand the European Commission publish Brexit no-deal plans as the deadline for trade talks go down to the wire.

Despite the equity market caution, gold traders continued to take a longer-term view, betting the COVID-19 vaccines would translate into a quicker economic recovery. That sent the precious metal to a one-week low.

Bitcoin, sometimes regarded as a safe haven or at least a hedge against inflation, also pulled back and last stood at $17,599.

Comments

Comments are closed.