Global Markets: Stocks retreat from record as vaccine hopes give way to virus concern
By Chuck Mikolajczak NEW YORK (Reuters) - A gauge of global stocks retreated from a record on Tuesday as rising coronavirus cases raised concerns over fresh lockdown measures and dented recent optimism over promising vaccine trial results. U.S. stocks were lower in morning trade, a day after the Dow Industrials notched a record, as several states imposed new restrictions on gatherings amid climbing COVID-19 cases and the onset of colder weather
By Chuck Mikolajczak
NEW YORK (Reuters) - A gauge of global stocks retreated from a record on Tuesday as rising coronavirus cases raised concerns over fresh lockdown measures and dented recent optimism over promising vaccine trial results.
U.S. stocks were lower in morning trade, a day after the Dow Industrials notched a record, as several states imposed new restrictions on gatherings amid climbing COVID-19 cases and the onset of colder weather.
Losses on the Nasdaq were curbed, however, by 8.73% jump in Tesla
Investors cheered positive vaccine trial results from Moderna
Still, analysts have warned that absent a new fiscal stimulus package, the economy is likely to falter until a vaccine is available for distribution.
Data on Tuesday showed retail sales increased less than forecast in October, with the potential for even further slowing. Factory production accelerated but remained well below levels prior to the pandemic.
"There is conflict for the market between the near-term direction to the economy, which is troubled with the very high COVID-19 rates, and the future for the market, and that's in which vaccines could provide an end to the restrictions," said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey.
The Dow Jones Industrial Average <.DJI> fell 231.74 points, or 0.77%, to 29,718.7, the S&P 500 <.SPX> lost 16.07 points, or 0.44%, to 3,610.84 and the Nasdaq Composite <.IXIC> dropped 0.87 points, or 0.01%, to 11,923.26.
European shares were also lower, as the STOXX 600 dipped after hitting its highest level in more than eight months on Monday, as Sweden moved to restrict the size of public gatherings and a British medical adviser suggested strengthening the three-tier system of restrictions when the full lockdown in England ends.
The pan-European STOXX 600 index <.STOXX> lost 0.28% and MSCI's gauge of stocks across the globe <.MIWD00000PUS> shed 0.15% after closing at a record 613.61 in the prior session.
U.S. Treasury yields fell in the wake of the retail sales report as it underscored the possibility of a slowdown in the fourth quarter.
Benchmark 10-year notes
The U.S. dollar remained soft, touching its lowest level in a week, with expectations for continued weakness on expectations for more fiscal and monetary stimulus as well as optimism over a potential vaccine.
The dollar index <=USD> fell 0.149%, with the euro
China's central bank on Tuesday lifted its offshore yuan to its highest since June 2018, underpinned by solid gains a day earlier on the back of strong economic data.
(GRAPHIC: China's Yuan is surging - https://fingfx.thomsonreuters.com/gfx/mkt/xegpbqjmlvq/Pasted%20image%201605617145961.png)
Crude prices fell back, as short-term demand concerns overshadowed vaccine hopes and the possibility of tighter supply policy from OPEC+ in 2021.
(Reporting by Chuck Mikolajczak; additional reporting by Shriya Ramakrishnan in Bengaluru; Editing by Steve Orlofsky)
This story has not been edited by Firstpost staff and is generated by auto-feed.
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