LONDON (Reuters) – European stocks and commodity markets struggled to stay steady on Thursday, with some of the biggest global sales accelerating after the withdrawal of national lockdowns in the region’s biggest economies in a few months.
The European Central Bank is expected to indicate later that it has more support for the proposal and a 0.5–1% surge in Wall Street futures led to a nearly 5% drop from European stocks on Wednesday, but they are still volatile Were.
The Pan-European STOXX 600 was up only 0.1% and although Frankfurt’s DAX was up 0.5%, it was certainly up for an 8% weekly decline that would be the fastest since the initial COVID panic in early March. [.EU]
With oil picking up at a rate of $ 38.5 per barrel to drop it in June with a 1.8% spill, commodities also hit commodities. [O/R]
“I think the change that has occurred in the last few days is significant spikes in the virus in Europe and the US, especially the US” said Nikesh Patel, chief investment officer of Kempen Capital Management.
As a result, the “W-shaped landscape for the economy has now become a consensus in the market” rather than one where economies are broadly stable.
Economic data and the ECB meeting were the second main focus of the day, gathering uncertainty about Tuesday’s US election, as well as keeping investors on edge.
The Bank of Japan did not make any changes to the expected monetary policy setting overnight, though trimmed its growth forecasts to reflect sluggish services spending during the summer.
Investors expect the ECB to put a hold on the new measures in a similar way, but instead of prompting action in December, which is likely to keep a lid on the euro.
A 10-day low in normal currency against the dollar and a hundred-day low was recorded on the yen on Wednesday before recovering slightly. It last bought $ 1.1752.
German government bonds, seen as Europe’s major safe-haven asset, were still in strong yields, with their yields contrasting with a price close to seven-month lows. Benchmark US 10-year yields were up to 0.7877% overnight.
Patel of Kempen cited the new COVID-19 restrictions announced this week, saying, “I think that what is happening in France and Germany, I think the ECB will talk about more incentives, even if they are today Don’t deliver it. “
Graphic: 2020 property performance here
Graphic: World FX rates here in 2020
On red clothes
The global stock market lost nearly $ 2 trillion yesterday, with volumes on the New York Stock Exchange rising nearly 40% to their highest level since September.
Overnight, MSCI’s largest index of Asia-Pacific shares outside Japan fell 0.6%, led by Australia by 1.6%, and went down 1% in South Korea.
Japan’s Nikkei fell just 0.3%, while Chinese blue chips rose 0.5% and the yuan led a soft surge in Asian currencies against the greenback. [FRX/]
“Asia is not really biased in the story of this second or third wave because it is largely under its control,” said Rob Cornell, Asia’s chief economist at Dutch bank ING.
“As a result, domestic economies look justified.”
For example, Taiwan, which is Asia’s best-performing currency, marked its 200th straight day on Thursday without a local broadcast, while France and Germany followed for a lockdown and a virus sweep in the US Midwest. Formulated as
Investors are increasingly wary of the contested US election result that could spark a wave of risk-asset sales.
Wall Street’s ‘fear gauge’, the Coby Volatility Index, reached its highest level since June on Wednesday and implied currency volatility indicates a wild ride is expected.
In currency markets, the US dollar rose slightly and risky currencies were suppressed.
The dollar, which had a nine-day high in the previous session, was up 0.1% against a basket of six currencies, while the euro near a three-month low. Japan’s yen was widely stable following the Bank of Japan’s suppressed message on the economy.
Additional reporting by Tom Westbrook in Singapore; Editing by Catherine Evans