LONDON / SYDNEY (Reuters) – World populations slipped further on Friday, and rescue ports were replenished as jitters over a rising global COVID-19 infection rate and next week’s US presidential election balanced the mood.
A strong central bank-driven rejection back from the original pandemic slide earlier this year has faltered this week with concerns about an even worse second wave of infections, particularly in Europe, removing the foam from the markets.
World shares .MIWD00000PUS was down 0.3% at 071
In Europe, the blue chip is EuroSTOXX 50 .STOXX50E fell 0.6% to take its weekly loss to 6.8% and leave it at levels last seen in late May.
MSCI’s broadest index of equities in Asia and the Pacific outside Japan .MIAPJ0000PUS was last down 1.2% on its way to breaking a race of four straight week wins.
US stock futures SC1NQc1meanwhile points to a fall of approx. 1.4% to 1.9%.
“New disruptions across Europe are being heavily re – marketed,” Barclays equities strategist Emmanuel Cau said in a note to customers.
“With complacency going fast, this decline may end up offering another good starting point, but much depends on the election result and the timing of the results.”
The weak sentiment that dragged Europe down came despite the previous day’s promise of more help from the European Central Bank when the next meeting meets in December to help counter the potential economic hit from the pandemic.
This week, global coronavirus cases have risen by over 500,000 for the first time, with France and Germany preparing new lockdowns.
In response, analysts expect an expansion and expansion of the ECB’s Pandemic Emergency Purchase Program, lower deposit facility rates and even more generous lending conditions for banks in December.
The message sent the euro EUR = slips to a four-week low of $ 0.1648 before recovering slightly on Friday to trade at $ 1.1668, down about 0.4% since the start of the month.
The dollar index = USDmeanwhile held firm, backed by a solid session on Wall Street overnight after strong quarterly reports from some of the leading technology giants, and data showing the US economy grew at a record pace of 33.1% in the third quarter.
“Even with the rebound, US production remains 3.5% below the level before COVID. The road to recovery is much less clear from here, especially as the number of virus cases grows and there are short-term obstacles to a fiscal policy agreement, ”ANZ analysts wrote in a note.
Burnt crude oil was also flat in early European offerings LCOc1 while US commodities CLc1 rose 0.2% to $ 36.27.
Reporting by Swati Pandey in Sydney and Pete Schroeder in New York; Clips by Tom Brown, Gerry Doyle, Kim Coghill, William Maclean