Global stocks plummet as a result of the growing virus freeze

US equities joined a slump in global equities as investors weighed the impact of tighter virus restrictions on economic growth. The dollar has advanced for a minimum of two years.

Stocks in public services and health led the S&P 500 index lower after weekly US claims were higher than expected. Nvidia Corp. refuses after warning that data center chip sales will decline. In Europe, cyclical stocks have borne the brunt of the retreat. Norwegian Air Shuttle ASA plunged up to 18% after seeking protection from creditors. Germany’s Thyssenkrupp AG fell after saying it would cut 11,000 jobs due to a cash burn in its steel business.

Treasury yields have slipped. Gold fell for the fourth day due to a withdrawal of exchange-traded funds backed by bullion.

The bullish fever that took the MSCI World Index to an all-time high on Monday eased, with cases of the virus on the rise in many parts of the world and public health facilities on the brink. New York City has announced it will close schools and South Australia has started one of the toughest lockdowns in the world, even banning outdoor exercise and dog walking. In Tokyo, the virus alert was raised to the highest levels as daily infections exceeded 500 for the first time.

All of this means that investors are grappling with how long and how severe the pandemic will be in the months to come. There is a lot of economic stress now as companies struggle for lockdowns, but scientists are also quickly promoting several vaccine candidates to bring life back to normal.

“The darkening of the economic picture in the short term is starting to more than offset future vaccine optimism,” Tom Essaye, a former Merrill Lynch trader behind the “The Sevens Report” newsletter, wrote to customers. “It’s not that the outlook has gotten so bleak, it’s just that the market has discounted a lot of good news and relatively little upset. And as usual, this could prove to be overly aggressive in the short term. “

In a report released Thursday, the IMF noted progress on a vaccine but also said high asset prices indicate a disconnection from the real economy and a potential threat to financial stability.

“As global economic activity has increased since June, there are signs that the recovery may lose momentum, and the crisis is likely to leave deep and uneven scars,” officials at the Washington-based fund said. “The uncertainty and the risks are exceptionally high.”

In other markets, the MSCI Asia Pacific Index fell for the first time in 14 days, ending its longest winning streak since 1988. Commodities fell and Bitcoin stabilized after surpassing US $ 18,000 on Wednesday. .

The Turkish lira strengthened after the country’s new central bank governor raised the benchmark interest rate.

Here are some events to watch out for this week:

• Brexit talks look set to continue as the UK and the EU approach the latest deadline.
• The Bloomberg New Economy Forum virtually convenes global leaders to discuss trade, growing political populism, climate change and the pandemic. Until November 19th.

These are the main moves in the markets:

Actions

• The S&P 500 Index fell 0.3 percent at 10:29 a.m. New York time.
• The Stoxx Europe 600 index fell 0.8 percent.
• The MSCI Asia Pacific Index fell 0.3 percent.
• The MSCI Emerging Market Index fell 0.7%.

Currencies

• The Bloomberg Dollar Spot Index rose 0.2%.
• The euro fell 0.2% to US $ 1.1833.
• The British pound fell 0.4% to $ 1.3214.
• The Japanese yen weakened by 0.1 percent to 103.94 per dollar.

Bonds

• The yield on 10-year Treasuries fell by one basis point to 0.86%.
• Germany’s 10-year yield fell two basis points to -0.57%.
• Britain’s 10-year yield fell one basis point to 0.32%.

Raw material

• West Texas Intermediate crude fell 0.6% to $ 41.57 a barrel
• Gold weakened 0.6 percent to $ 1,860.29 per ounce.

– With the assistance of Andreea Papuc and Jan-Patrick Barnert.