Global market – COVID-19 cases fall below record height to over 90 million

* Graphic: 2020 asset performance

* Graphic: World FX rates in 2020

LONDON, Jan 11 (Reuters) – World stocks slipped from record highs on Monday as cautiousness in rising coronovirus cases gave investors some gains, while Treasury yields remained close to 10-month highs Estimated US financials were indicative of fluctuations globally. Encouragement.

According to Reuters Tally, worldwide coronovirus cases crossed 90 million on Monday.

European shares dipped in early trade, with cases of coronovirus rising throughout the continent and China pulling down commodity stocks. Germany’s DAX fell by half a percentage point to 0.75%, Britain’s FTSE 100, Italy’s FTSE MIB and France’s CAC 40 each and Spain’s IBEX fell 0.1%.

With Asian stock markets also down, MSCI’s All Country World Index, which tracks stocks from 49 countries, was down 0.2% from Friday’s record high.

Futures for the S&P 500 slipped 0.6% from record highs after gaining 1.8% last week. EUROSTOXX 50 futures were flat 0.1% and FTSE futures.

Looking at record highs on Friday, Michael Hewson, chief market analyst at London’s CMC Markets, said there was a lot of optimism about his chances of winning those two Georgia Senate seats.

“Friday’s payroll report was disappointing, underscoring the need for a more significant fiscal response. But as we are in week two (New Year’s), I feel a bit angry to have taken some advantage of this optimism. “

In Asia, MSCI’s largest index of Asia-Pacific shares outside Japan sank 0.1%, a record 5% rise over the previous week. Japan’s Nikkei was on holiday after closing at a 30-year high on Friday.

South Korea made an early jump to fall 0.1% and Chinese blue chips fell 1%.

Last week, Wall Street bankers warned unhappy stock markets and a retreat after exacerbation from unprecedented economic stimulus led to a drop in property prices.

“I think there is probably an assumption that markets are getting a little ahead of themselves,” Hewson said.

In a note to clients, Mark Heffel, chief investment officer at UBS Global Wealth Management, said he does not see the valuation as an obstacle for the equity rally to continue, “especially given the background of continued policy incentives and vaccines. Against the rollout of. “

Long-term Treasury yields have been the highest since March’s Friday’s weak jobs report, dismissing speculation of US fiscal stimulus that Democrats have control of the government.

President-elect Joe Biden is due to announce plans for “trillions” in new relief bills this week, most of which will be paid for by increased borrowings.

At the same time, the Federal Reserve seems content to emphasize fiscal policy. Vice chairman Richard Clarida said the Fed would not make any quick changes to the $ 120 billion debt it was buying every month.

Reluctant to buy more long-term bonds with the Fed, 10-year Treasury yields rose nearly 20 basis points to 1.12% last week, the biggest weekly rise since June.

Treasury futures lost another 3 ticks in the early hours of Monday.

Mark Cabanas at Bofoa said the stimulus could put pressure on the dollar and cause for Fed tapings to begin later this year.

“An early Fed taper poses a risk to our year-end 1.5% 10-year Treasury target and supports our long-term expectations for neutral rates,” said a note to clients.

Poor payroll reports will increase interest in US data on inflation, retail sales and consumer sentiment.

JPMorgan, Citigroup and Wells Fargo are also among the first companies to release fourth quarter results on 15 January.

The increase in yields, in turn, gave some support to the dollar, which had risen to 90.338 against a basket of currencies from the previous week’s low of 89.206.

The euro bounced back from its recent top of $ 1.2349 to $ 1.2185, breaking support around $ 1.2190. The dollar also reached 104.18 yen from a trough of 102.57 hits last week.

The sudden surge in bond yields eased gold, offering no interest and was down 1.1% to $ 1,828 an ounce, the most recent peak of $ 1,959.

Oil prices went into profit on Friday, after reaching its highest level in nearly a year after Saudi Arabia promised to cut production.

Brent crude futures fell 0.7% to $ 55.56. US crude futures lost 0.3% to $ 52.10 a barrel.

Reporting by Ritwik Carvalho; Additional reporting by Wayne Cole in Sydney; Editing by Larry King


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