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London: European shares fell on Monday as rising COVID-19 an infection charges in Europe prompted renewed lockdown measures in some international locations, casting doubt over the financial restoration, with an absence of U.S. stimulus additionally weighing on sentiment.
The MSCI world fairness index, which tracks shares in 49 international locations, was down 0.5% at 0748 GMT.
European indexes opened decrease, with the pan-European STOXX 600 down 1.7%, at its lowest in almost two weeks. London’s FTSE 100 was at a two-week low, down 2.4% and Germany’s DAX fell 2%.
Banking shares slid after a media report on how a number of world banks moved massive sums of allegedly illicit funds over almost 20 years.
HSBC shares sunk to a 25-year low in Hong Kong.
Investors have gotten extra cautious about Europe, amid a pointy uptick in new COVID-19 cases. European international locations together with Denmark, Greece and Spain have launched new restrictions on exercise.
Britain is contemplating a second nationwide lockdown as new cases rise by no less than 6,000 per day.
Germany’s well being minister mentioned the rising new infections in international locations like France, Austria and the Netherlands is worrying.
Investors might be trying forward to flash PMI knowledge on Wednesday for the primary hints of how economies have fared in September.
“Concerns are rising that the summer recovery is probably as good as it gets when it comes to the recent rebound in economic activity,” wrote Michael Hewson, chief market analyst at CMC Markets UK.
“This reality combined with the growing realisation that a vaccine remains many months away, despite President (Donald) Trump’s claims to the contrary, has made investors increasingly nervous, as we head into an autumn that could see lockdowns reimposed,” he mentioned.
The greenback declined for the second week working final week, damage by the U.S. Federal Reserve’s dedication to retaining charges decrease for longer.
It was buying and selling lower than 0.1% up towards a basket of currencies at 92.997 at 0750 GMT.
Seven members of the Fed will communicate this week – together with chairman Jerome Powell showing earlier than Congressional committees – so buyers might be in search of hints to decide the greenback’s course.
The safe-haven yen was in its sixth consecutive session of positive factors versus the greenback, up round 0.4% at 104.185.
Japan has public holidays on Monday and Tuesday this week, that means volumes are skinny in Asian buying and selling.
The euro was flat towards the greenback at $1.18325, whereas the secure Swiss franc rose towards each the greenback and euro .
The benchmark 10-year German authorities bond yield was down 2 foundation factors at -0.507%, with most high-rated euro zone authorities bond yields down by an identical quantity.
The European Central Bank will evaluate how lengthy its emergency pandemic bond-purchase scheme ought to go on, the Financial Times reported.
The European Council meets in a summit on Thursday and Friday this week.
Elsewhere, oil costs fell, with Brent crude down 1.8% at $42.39 a barrel at 0745 GMT, whereas U.S. crude was down 1.9% at $40.34 a barrel.
Gold costs edge larger, helped by the weaker greenback, with spot gold up 0.1% at $1,950.93 per ounce by 0747 GMT.
This story has been printed from a wire company feed with out modifications to the textual content. Only the headline has been modified.
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