Global shares step back as hopes of early end to coronavirus fade

By Hideyuki Sano TOKYO (Reuters) - Global shares eased on Friday, as investors were spooked by a sharp rise in the number of coronavirus cases in China this week while oil prices extended gains on hopes of more production cuts.

Reuters February 14, 2020 07:07:22 IST
Global shares step back as hopes of early end to coronavirus fade

coronavirus fade" src="https://images.firstpost.com/wp-content/uploads/reuters/02-2020/14/2020-02-14T011129Z_1_LYNXMPEG1D04N_RTROPTP_2_GLOBAL-MARKETS.jpg" alt="Global shares step back as hopes of early end to coronavirus fade" width="300" height="225" />

By Hideyuki Sano

TOKYO (Reuters) - Global shares eased on Friday, as investors were spooked by a sharp rise in the number of coronavirus cases in China this week while oil prices extended gains on hopes of more production cuts.

MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> dipped 0.08% with South Korea's Kospi <.KS11> falling 0.25% while Japan's Nikkei <.N225> slid 0.67%.

U.S. stock futures shed 0.07% in Asia, after the S&P 500 <.SPX> lost 0.16%.

China's Hubei province on Friday reported 4,823 new cases, well above the levels seen earlier this month. While a record spike seen a day earlier was mostly due to new methodology used to count new infections, it nonetheless weighed on investor sentiment.

"Until Wednesday, people had been saying that you can buy shares because the number of new cases had peaked out. The reality seems to be quite different. An early end to this seems improbable," said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities.

Japan confirmed its first coronavirus death on Thursday, a third case outside mainland China after two previous fatalities in Hong Kong and the Philippines.

"Investors will surely avoid Asia for the time being and will shift funds to the U.S., geographically the most separated from the region," he said.

That meant more demand for the U.S. dollar in the currency exchange market.

The dollar's index against a basket of currencies <=USD> hit a four-month high, having risen 1.8% so far this month.

The euro fell to as low as $1.0834, its lowest level in almost three years, in U.S. trade on Thursday. It last stood at $1.0840 ,

It also hit a nine-week low against the British pound and 4-1/2 year low against the Swiss franc.

The euro has been bruised also by rising political uncertainties in Germany as well as worries about sluggish growth in the region.

Annegret Kramp-Karrenbauer, who had been long expected to succeed Chancellor Angela Merkel next year, earlier this week gave up her bid to run for the top job, raising more concerns about political stability in the euro zone's biggest economy.

The euro zone GDP data due later on Friday is expected show a paltry growth of 0.1%.

Sterling jumped and so did UK bond yields as investors bet on a higher-spending budget next month after British Prime Minister Boris Johnson forced the resignation of Sajid Javid as finance minister.

Javid, known to have been at odds with Johnson's powerful policy adviser Dominic Cummings over spending plans, was replaced by Rishi Sunak, a Johnson ultra-loyalist.

The pound traded at $1.3045 , after 0.65% gains on Thursday.

The 10-year gilts yield jumped to a three-week high of 0.660% .

The yen stayed in a familiar range in the past couple of weeks and last traded at 109.82 yen .

Oil prices extended their week-old recovery on hopes that he world's biggest producers would cut output more as demand looks set to drop sharply due to the outbreak of coronavirus .

The International Energy Agency (IEA) expects oil demand in the first quarter to fall for the first time in 10 years.

U.S. West Texas Intermediate (WTI) crude futures were flat at $51.42 per barrel in early Friday trade but up 2.2% on the week, on course to post their first weekly gains in six weeks.

(Editing by Sam Holmes)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

More than 20 killed in Mali airstrike on wedding ceremony - health worker
World

More than 20 killed in Mali airstrike on wedding ceremony - health worker

DAKAR (Reuters) - More than 20 people, including children, were killed in an airstrike during a wedding ceremony in central Mali on Sunday, a health worker with knowledge of the attack told Reuters. (Reporting By Edward McAllister; Editing by Aaron Ross)

Bleak start to new year for Britain as it enters third lockdown
World

Bleak start to new year for Britain as it enters third lockdown

By Estelle Shirbon and Natalie Thomas LONDON (Reuters) - Britain began its third COVID-19 lockdown on Tuesday with the government calling for one last major national effort to defeat the spread of a virus that has infected an estimated one in 50 citizens before mass vaccinations turn the tide. Finance minister Rishi Sunak announced a new package of business grants worth 4.6 billion pounds ($6.2 billion) to help keep people in jobs and firms afloat until measures are relaxed gradually, at the earliest from mid-February but likely later

France cranks up COVID-19 vaccine rollout to deliver shots faster
World

France cranks up COVID-19 vaccine rollout to deliver shots faster

By Dominique Vidalon and Sudip Kar-Gupta PARIS (Reuters) - France is stepping up its COVID-19 vaccine rollout by widening the first target group to include more health workers and simplifying a cumbersome process to deliver shots more quickly, Health Minister Olivier Veran said on Tuesday. France's inoculation campaign got off to a slow start, hampered in part by red tape and President Emmanuel Macron's decision to tread warily in one of the world's most vaccine-sceptical countries. France has fallen behind neighbours such as Britain and Germany, and the president is now demanding the vaccination programme be expedited