NEW YORK / LONDON (Reuters) – Stock markets slid Thursday after US data raised concerns about the recovery of the economy and sparked enthusiasm that prompted Chinese stocks to rally for the eighth consecutive day , while the dollar gained while new cases of coronaviruses reached a new record.
The dollar had struggled earlier in the session, with the Chinese yuan hitting a four-month high as investors invested in Chinese stocks on increasing signs of recovery, which also helped push prices higher. copper over a year.
But concerns over renewed blockages of the US coronavirus have also limited oil prices and offset signs of renewed demand for gasoline in the United States. A slowdown in the rate of decline in weekly unemployment claims in the United States after a peak in March also gave investors a break.
The increase in coronavirus cases and the slower improvement in the US job market have been a big blow to the market.
“We are reaching levels of unemployment that should persist until a more real reopening can happen, whether with a vaccine, a new treatment or time,” said Jamie Cox, managing partner at Harris Financial Group in Richmond, Virginia.
The MSCI global equity index, which tracks stocks in 49 countries, fell after previous gains. The index fell 0.8% after its widest measure of Asia-Pacific stocks excluding Japan rose 0.66% on the Chinese rally.
Wall Street also fell. The Dow Jones Industrial Average slipped 1.58%, the S&P 500 lost 1.20% and the Nasdaq Composite lost 0.51%.
In Europe, equities reduced their gains to close lower. The broad FTSEurofirst 300 index in Europe lost 0.78%.
More than 60,000 new infections with coronavirus were announced Wednesday and the deaths in the United States increased by more than 900 for a second consecutive day, the highest since the beginning of June.
Unemployment claims fell gradually, although they remained about double their highest point during the great recession of 2007-2009.
Initial claims for state unemployment benefits totaled 1.314 million seasonally adjusted data for the week ended July 4, up from 1.413 million the previous week, the Labor Department said.
Oil prices fell about 3% as investors worried that new U.S. restrictions to contain the spread of the coronavirus would sow fuel consumption.
“COVID-19 cases continue to increase in the United States and traders are wondering when they will see an end to this, when the trend will change,” said Louise Dickson, oil market analyst at Rystad Energy.
Brent futures fell 0.79% to $ 42.5 a barrel. Crude oil slipped 2.79% to $ 39.76 a barrel.
Overnight in Asia, Chinese stocks posted their longest winning streak in two years, and the yuan strengthened beyond 7%, despite rising tensions over Hong Kong and the economic uncertainty caused by COVID-19.
It was the eighth consecutive day of gains for the Shenzhen benchmark, adding another 1.5% to its 16% gain this month, and it initially helped Europe on an upward trajectory after hesitation caused by uninspiring German data.
The improvement in the sense of risk was the previous downward dynamic of the dollar – it was at a one-month low against the euro, a three-week low against the pound sterling and a four-month low against the Swiss franc before bouncing.
Asian investors have reached a high level after a front page editorial in Monday’s China Securities Journal that touted market fundamentals, which was seen as an official incentive to buy stocks.
State media warned on Thursday that investors should still pursue rational investments and manage risks, but that did not dampen the increases.
In Europe, however, Britain suffered another 5,000 job losses on the streets, and German export figures rebounded less than expected in May, as demand remained subdued despite the removal of closings in other countries. large parts of Europe.
The dollar index, which tracks the greenback against a basket of six currencies, rose 0.31% to 96.727.