Rising U.S. coronavirus cases hurt stocks, push debt yields lower
By Herbert Lash NEW YORK (Reuters) - Government debt yields and global equity markets fell on Thursday as a growing number of U.S. coronavirus cases weighed on risk sentiment that also was hurt by deteriorating U.S.-China relations and discouraging Chinese data
coronavirus cases hurt stocks, push debt yields lower" src="https://images.firstpost.com/wp-content/uploads/reuters/07-2020/17/2020-07-16T031032Z_1_LYNXNPEG6F063_RTROPTP_2_CHINA-ECONOMY-STIMULUS.jpg" alt="Rising US coronavirus cases hurt stocks push debt yields lower" width="300" height="225" />
By Herbert Lash
NEW YORK (Reuters) - Government debt yields and global equity markets fell on Thursday as a growing number of U.S. coronavirus cases weighed on risk sentiment that also was hurt by deteriorating U.S.-China relations and discouraging Chinese data.
A jump in the number of U.S. COVID-19 cases has forced states such as California to reduce business activity again, sparking fears of further economic damage and taking the shine off a Wall Street rally built on recovery hopes.
The pandemic continues to surge in many Southern and Western states, with 67,404 new U.S. cases reported as of Wednesday by the Centers for Disease Control and Prevention. The number of new cases in European and Asian developed countries is in the hundreds, with the exception of Russia and the UK, according to daily situation reports by the World Health Organization.
Data showed that the resurgence in new cases was chipping away at a budding recovery. While U.S. retail sales rose a better-than-expected 7.5% in June, a Labor Department report showed 1.3 million people filed for state unemployment benefits during the week ending July 11, down just 10,000 people from the prior period.
The S&P 500, less than 6% off from its all-time peak in February, slipped from a rally that pushed it to a five-week high.
U.S. stocks are taking a pause after a strong run-up in recent days, said Jon Adams, senior market strategist at BMO Global Asset Management in Chicago.
"There is a bit more concern today at least around the resurgence of the virus, and initial jobless claims were a bit higher than expectations," Adams said.
"We do think we might see a pause in the resumption of economic recovery that we've seen over the last couple of months," he said.
MSCI's world equity index <.MIWD00000PUS>, which tracks shares in 49 nations, fell 0.89% to 544.9.
On Wall Street, the Dow Jones Industrial Average <.DJI> fell 0.88%, the S&P 500 <.SPX> lost 0.67% and the Nasdaq Composite <.IXIC> dropped 0.93%.
Treasury yields fell and gold eased, though futures contracts remained above $1,800 an ounce. The 10-year Treasury note
Relations between the world's two largest economies have sunk to the lowest point in decades with new points of contention surfacing almost daily.
The Trump administration is considering banning travel to the United States by all members of the Chinese Communist Party and their families, a person familiar with the matter said, a move that would worsen already-tense U.S.-China relations.
China accused the United States of "gangster logic" after President Donald Trump ordered an end to Hong Kong's special status under U.S. law in response to China's imposition of new security legislation on the former British colony.
Asian stock markets fell overnight and the Chinese yuan
The risks to China's economy were partly reflected in data that showed Chinese consumers kept their wallets tightly shut in June. Retail sales slid 1.8%, the fifth month of decline and worse than a forecast for 0.3% growth last month.
In currency markets the euro
Economic activity in the 19-country euro zone had shown signs of a "significant, though uneven and partial recovery," European Central Bank President Christine Lagarde said.
But the outlook remained uncertain amid risks of a second wave of infections and the ECB will use its stimulus firepower fully even as the euro zone economy shows some signs of rebounding from its pandemic-induced recession, Lagarde said.
Oil prices eased after OPEC and allies such as Russia agreed to taper record supply curbs from August, though the drop was cushioned by hopes for a swift pickup in U.S. demand after a big drawdown from the country's crude stocks.
Brent crude futures
Spot gold prices fell below the $1,800 an ounce, but futures held above the key level. U.S. gold futures
(Reporting by Herbert Lash; Editing by Bernadette Baum and Jonathan Oatis)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Katanga Johnson WASHINGTON (Reuters) - Global equities set both an intraday high and record close on Tuesday as markets as investors weighed the latest U.S. economic data for signs of a rebound and rising inflation while Wall Street's main indexes wavered before ending little changed. Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn Energy shares were among the best performing during the session as the OPEC+ alliance agreed to hike output in July and gave a bullish forecast.
(Reuters) - Zoom Video Communications Inc reported better-than-expected quarterly revenue on Tuesday, benefiting from steady demand for its video-conferencing platform as people wary of the pandemic continued school and work from home. Zoom became a household name during the pandemic as businesses and schools switched to its video conferencing platform for virtual classes, office meetings and social catch-ups.
By Michele Kambas NICOSIA (Reuters) -Cyprus's ruling conservatives emerged as winners but failed to get an absolute majority in a parliamentary election on Sunday, with voters turning to smaller parties, including a right-wing party with links to Greece's now outlawed Golden Dawn.