NEW YORK/LONDON (Reuters) – Global equities tend to be lower on Thursday on concerns about the long-term economic impact of the new corona virus and the simmering U.S.-China tensions, even though the oil markets are set-aside the worries, and marched to a 2-1/2-month high.
FILE PHOTO – people walk past the London Stock Exchange Group’s offices in the City of London, UK, 29. July, 2017. REUTERS/Toby Melville
London .The FTSE in Paris .FCHI and Frankfurt, Germany .GDAX stock markets fell, as well as the S&P 500 and the Nasdaq index on Wall Street, but the Dow industrials edge higher in choppy trade.
The dollar traded in a narrow range, as investors, the impact of the global business weighed have locks, and the euro’s four-day rally against the U.S. currency ran out of steam.
Gold slipped 1% as a strong dollar pushing it this week, 7-1/2-year peak.
Rising tensions between Washington and Beijing over China’s handling of the corona-virus-infection, the administration of ‘investors’ pause. U. s. Secretary of state, Mike Pompeo, on Wednesdau China ‘ s $2 billion commitment in the fight against the pandemic could have been “poor.”
“The biggest threat to the U. s. market this year is actually the potential for the ignition of the tariff war between the U.S. and China,” said Kristina Hooper, chief global market strategist at Invesco in New York.
The stocks in the short-run, driven by the news flow, although the party is on the upper side by the easy money policies of the Federal Reserve system, Hooper said.
MSCI display of stocks around the world .MIWD00000PUS shed 1.04%, while the pan-European STOXX 600 index lost 0.57%.
On Wall Street, the Dow Jones Industrial Average .DJI fell 198.19-points, or 0.81%, to 24,377.71. The S&P 500 .SPX lost 32.61 points, or 1.10%, to 2,939, and the Nasdaq Composite .IXIC fell to 120.43 points, or 1.28% to 9,255.35.
In Europe, will return confirmed by the purchasing managers index surveys (PMIs) that economic activity has begun, even though they were far from stellar.
The Euro-zone-wide figures came in better than expected, but overall in Germany, we are the forecasts below. It was the third month in a row that the surveys were field plonked firmly in the economic contraction.
Oil also rose on the view that the demand for fuel should recover. Brent, the international benchmark, has bounced up to $20 per barrel in the past month.
U.S. crude oil CLc1 rose 1.05% to $33.84 per barrel and Brent LCOc1 at $36.19, up 1.23% on the day.
“The market absorbed the last embers of the government, to pay the debts, the corona-virus-support-programs pretty smoothly. The U. s. 20 billion U.S. auction-Dollar, 20-year debt for the first time since 1986 on Tuesday.
Italy sold about the same, and Spain has said, it is necessary to have the almost 100 billion euros planned to be more than.
The benchmark U.S. 10-year notes US10YT=RR fell 1.8 basis points to a yield 0.6541%.
U.S. weekly initial claims for unemployment benefits totaled a seasonally adjusted 2.4 million, in line with a Reuters poll of economists ahead of the data, and the well-off-the-record 6.867 million at the end of March.
The dollar index =USD, rose, 0.278%, the euro EUR=, from 0,27% up to $1.0947. The Japanese yen weakened 0.14% against the usd, at 107.69 per dollar.
The reporting by Herbert Lash; editing by David Gregorio