Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Equities sink on virus angst, Fed aftermath; gold, yen rise

share with twitter share with LinkedIn share with facebook
09/18/2020 | 04:16pm EDT
FILE PHOTO: The New York Stock Exchange (NYSE) is seen in the financial district of lower Manhattan during the outbreak of the coronavirus disease (COVID-19) in New York

Global equity markets slid on Friday as investors sought direction after this week's U.S. Federal Reserve meeting and a jump in coronavirus cases in Europe rattled sentiment, while gold rose and safe-haven buying lifted the Japanese yen.

The dollar posted its fifth straight day of declines against the yen as Japan's monetary policy of yield curve control pushes up real interest rates.

U.S. technology-related stocks reversed early gains on Wall Street to extend their losses to a third day, while the S&P 500 and Nasdaq posted a third straight week of declines.

The big tech names that have fueled the U.S. rally from a pandemic-induced slump in March - Apple Inc, Microsoft Corp, Amazon.com Inc and Alphabet Inc - led equities lower.

Rising coronavirus cases and a dim economic outlook weighed on sentiment. The biggest threat to the euro zone economy is a resurgent pandemic, according to a Reuters poll of economists, who say growth and inflation are more likely to cause negative surprises in the coming year than positive ones.

European countries from Denmark to Greece announced new restrictions on Friday to curb surging coronavirus infections in some of their largest cities, while Britain was reported to be considering a new national lockdown.

"The COVID-19 infection rate in Europe has gotten pretty bad," said Tom Martin, senior portfolio manager at Globalt Investments in Atlanta. "The implications are that it's difficult to curtail the virus."

MSCI's benchmark for global equity markets fell 0.62% to 566.62, while in Europe, the broad FTSEurofirst 300 index closed down 0.62% at 1,429.67.

On Wall Street, the S&P 500 lost 37.55 points, or 1.12%, to 3,319.46 and the Nasdaq Composite dropped 117.00 points, or 1.07%, to 10,793.28. The Dow Jones Industrial Average fell 244.56 points, or 0.88%, to 27,657.42.

For the week, the S&P 500 fell 0.65%, the Dow slipped 0.03% and the Nasdaq declined 0.56%.

A big rotation into value stocks from growth and momentum has yet to materialize, said Yousef Abbasi, global market strategist at StoneX.

"There really isn't a value sector that's positioned to take the reins and lead," Abbasi said. "There's a lack of a catalyst to force people to look more seriously at value as leadership."

Investors ignored a report that showed U.S. consumer sentiment increased in early September, with Democrats more upbeat about the economy's outlook compared with Republicans ahead of the Nov. 3 presidential election.

A decision by Republican President Donald Trump's administration to ban WeChat and video-sharing app TikTok from U.S. app stores starting Sunday night raised concerns about a new front in continuing China-U.S. political tensions.

"The diplomatic tug of war is not being resolved," said Boris Schlossberg, managing director of FX strategy at BK Asset Management. "The tensions are heightening rather than easing. That's not something the market likes to see."

The Japanese yen strengthened 0.12% versus the greenback at 104.60 per dollar, after earlier gaining to 104.270 - its strongest level against the U.S. currency since July 31.

The dollar index rose 0.058%, with the euro unchanged at $1.1847.

U.S. Treasury yields edged higher but remained within recent trading ranges as government-bond investors took their cue from equity markets.

The benchmark 10-year U.S. Treasury note rose 1.3 basis points to 0.6953%.

Euro zone government bond yields traded little changed on expectations of more central bank policy easing.

Safe-haven German 10-year bond yields were up 0.1 basis points at -0.482%.

Investors piled into emerging markets assets, giving developing country debt funds their 11th straight week of inflows.

Copper touched its highest in more than two years as speculators extended their buying spree on the economic recovery in top metals consumer China while the dollar weakened.

China has been a major beneficiary of investment flows as the country is the most attractive market for asset managers with cash to allocate, according to fund flow tracker EPFR.

Stocks overnight in China made their strongest gains in three weeks, with the CSI300 index adding 2.2%, led by financial companies.

Gold prices gained, buoyed by a weaker dollar and concerns over the economic recovery.

Spot gold prices rose 0.39% to $1,950.08 an ounce, and U.S. gold futures settled up 0.6% at $1,962.10.

Oil prices settled little changed after a Libyan commander said a blockade of Libya's oil exports would be lifted for a month, while the decline in U.S. equities weighed on futures.

Still, both the U.S. and Brent crude benchmarks were set for weekly gains after Saudi Arabia pressed allies to stick to output quotas, Hurricane Sally cut U.S. production, and banks including Goldman Sachs predicted a supply deficit.

Brent crude futures slid 15 cents to settle at $43.15 a barrel. U.S. crude futures rose 14 cents to settle at $41.11 a barrel.

By Herbert Lash


Stocks mentioned in the article
ChangeLast1st jan.
ALPHABET INC. 1.64% 1632.98 Delayed Quote.21.92%
APPLE INC. -0.61% 115.04 Delayed Quote.56.70%
AUSTRALIAN DOLLAR / JAPANESE YEN (AUD/JPY) 0.05% 74.774 Delayed Quote.-1.92%
BRITISH POUND / JAPANESE YEN (GBP/JPY) 0.02% 136.581 Delayed Quote.-4.84%
CANADIAN DOLLAR / JAPANESE YEN (CAD/JPY) 0.00% 79.765 Delayed Quote.-4.57%
DJ INDUSTRIAL -0.10% 28335.57 Delayed Quote.-0.71%
EURO / JAPANESE YEN (EUR/JPY) 0.05% 124.245 Delayed Quote.1.73%
EURO / US DOLLAR (EUR/USD) 0.02% 1.1861 Delayed Quote.5.37%
GOLD -0.20% 1901.174 Delayed Quote.25.56%
JAPANESE YEN / SWISS FRANC (JPY/CHF) -0.03% 0.863 Delayed Quote.-2.88%
LONDON BRENT OIL -1.65% 41.66 Delayed Quote.-35.76%
MICROSOFT CORPORATION 0.62% 216.23 Delayed Quote.37.11%
NASDAQ 100 0.25% 11692.571891 Delayed Quote.33.89%
NASDAQ COMP. 0.37% 11548.281629 Delayed Quote.28.71%
NEW ZEALAND DOLLAR / JAPANESE YEN (NZD/JPY) 0.07% 70.035 Delayed Quote.-4.19%
S&P 500 0.34% 3465.39 Delayed Quote.7.26%
THE GOLDMAN SACHS GROUP, INC. -0.18% 205.04 Delayed Quote.-10.83%
US DOLLAR / JAPANESE YEN (USD/JPY) 0.03% 104.72 Delayed Quote.-3.48%
WTI -2.04% 39.715 Delayed Quote.-33.87%
share with twitter share with LinkedIn share with facebook
Latest news "Economy & Forex"
05:03aIndonesian unions vow mass protests if president signs jobs law
RE
05:00aIndonesian unions vow mass protests if president signs jobs law
RE
04:51aChina says looking into unfair competition on e-commerce platforms - Xinuha
RE
02:20aNIOC NATIONAL IRANIAN OIL : Second Well in Solabdar Field Productive after 42 Years
PU
02:01aAnt Group IPO pricing 'history's largest', says Alibaba's Jack Ma
RE
01:55aJACK MA : Ant Group IPO pricing 'history's largest', says Alibaba's Jack Ma
RE
12:56aCroatia's Istria region producing some of the world's best olive oil, say experts
RE
12:07aRyanair, easyJet and others offer refunds after watchdog inquiry
RE
10/23EXCLUSIVE : Biden wins major union endorsement in final days of White House race
RE
10/23AmEx issues dismal outlook on business travel spending as profit slumps
RE
Latest news "Economy & Forex"