Global markets: Equities reverse after hitting five-month peak, bonds edge higher
By David Randall NEW YORK (Reuters) - World equity benchmarks reversed course after hitting a five-month peak on Monday while safe-haven U.S. government bonds and gold gained, as optimism about a global economic recovery was overtaken by renewed fears amid record numbers of new coronavirus cases in the U.S. MSCI's gauge of stocks across the globe briefly touched its highest level since February before ending down 0.29%.
By David Randall
NEW YORK (Reuters) - World equity benchmarks reversed course after hitting a five-month peak on Monday while safe-haven U.S. government bonds and gold gained, as optimism about a global economic recovery was overtaken by renewed fears amid record numbers of new coronavirus cases in the U.S.
MSCI's gauge of stocks across the globe <.MIWD00000PUS> briefly touched its highest level since February before ending down 0.29%.
On Wall Street, the Dow Jones Industrial Average <.DJI> rose 10.5 points, or 0.04%, to 26,085.8, the S&P 500 <.SPX> lost 29.82 points, or 0.94%, to 3,155.22, and the Nasdaq Composite <.IXIC> dropped 226.60 points, or 2.13%, to 10,390.84.
"Equity indices are clearly trying to look through into Q3 and beyond, but with the U.S. struggling to shake off the coronavirus phase one, this should be factored into equity risk premia," Raymond James European strategist Chris Bailey said.
Losses accelerated in U.S. afternoon trading after California ordered new lockdown measures, including shutting bars and banning indoor dining at restaurants statewide to combat the surge in infections. School districts in Los Angeles and San Diego announced they will offer online-only instruction in the fall.
The stock market reversal helped the dollar pare losses, finishing down less than 0.1% against a basket of major currencies. The euro, meanwhile, rose 0.5% to $1.135 to maintain its slow uptrend since late last month. Looming large for the common currency was a planned EU summit on July 17-18, where leaders need to bridge gaps on long-term budget and economic stimulus plans. [FRX/]
"If an agreement weren't to be reached there, then they still expect one within weeks. It's worth remembering that there are a number of complex issues to be worked out," Deutsche Bank strategist Jim Reid said.
Investors continued to seek the perceived safety of government bonds. Benchmark 10-year notes
Super-low rates have been a boon for non-yielding gold, which hovered near nine-year highs after five straight weeks of gains. Spot gold
(Reporting by David Randall; Editing by Nick Zieminski, Chris Reese and Leslie Adler)
This story has not been edited by Firstpost staff and is generated by auto-feed.
BAGHDAD (Reuters) - Rockets hit near U.S. forces and contractors in Iraq on Wednesday, including an air base north of Baghdad and a military base at Baghdad International Airport, the Iraqi army and security officials said. The army reported at least three rockets hit Balad air base, where U.S
By Silvia Ognibene and Silvia Aloisi FLORENCE, Italy (Reuters) -Italian police have arrested a Chinese couple accused of running a leather goods business which exploited immigrant workers it employed to make handbags for a Burberry supplier, according to an arrest warrant seen by Reuters. Tax police in Florence said in a statement that the two Chinese nationals were arrested on Wednesday as part of an investigation into alleged labour exploitation and tax fraud and that restrictive measures had been imposed on two other family members, including a ban on them leaving Italy
WASHINGTON (Reuters) - The United States on Wednesday blacklisted four Nicaraguans, including a daughter of President Daniel Ortega, as Washington warned it would continue to use diplomatic and economic tools against members of the leftist government engaged in repression. The U.S. State Department called on Ortega to release detained presidential candidates as well as other civil society and opposition leaders arrested over the past week in what Washington called "an increasing wave of repression." "There are costs for those who are complicit in the regime's repression.