Equities dip on coronavirus woes

Stock markets mostly dipped Tuesday with traders kept in check by spiking coronavirus infections and the reimposition of some lockdowns around the world, dealers said.

Wall Street opened mixed, with the Dow shedding 0.3 percent, as investors reacted also to news that a vaccine trial had been halted after a volunteer fell ill.

However Nasdaq rose 0.3 percent ahead of Apple’s launch of its latest iPhone and as traders looked for tech stocks that will resist the coronavirus recession.

Across the Atlantic, the major indices were down in afternoon trading, with London slipping 0.5 percent one day after revamping Covid-19 restrictions, and as official data showed Britain’s unemployment rate had jumped to 4.5 percent.

Asian stock markets mostly closed lower, while oil prices rebounded from recent losses on news of rising crude imports in key global consumer China.

The dollar was higher against its main rivals.

“It is a broad-based sell off in Europe as concerns about the health crisis and tighter restrictions have hurt sentiment,” said David Madden, market analyst at CMC Markets UK.

“In the last few sessions, European stocks have been lifted by the hopes for a US stimulus package, all the while the health crisis was bubbling away in the background — but the pandemic is now back at the forefront of traders’ minds.”

The British government faced renewed pressure after indications it had ignored scientific advice three weeks ago for tougher restrictions to cut rising coronavirus infections.

– Vaccine worries –

At the same time, worries about the development of a vaccine are playing on investors’ minds after Johnson & Johnson said it had temporarily halted its trial after a participant fell sick.

The firm said serious adverse events were “an expected part of any clinical study, especially large studies”, adding company guidelines allowed officials to pause a study to determine if the problem was related to the drug in question and whether to resume trials.

The news dealt a blow to hopes for an effective treatment for the disease, which has killed more than a million people, infected tens of millions and plunged the global economy into recession.

Meanwhile, the IMF said the global economic crisis will not be quite as grim as feared this year, but GDP will still contract 4.4 percent and the pandemic means the outlook remains uncertain.

– Stimulus uncertainty –

Sentiment was hampered after a top Democrat said the House should not expect any action on a new stimulus this week, making a US rescue deal even more unlikely before the November 3 election.

Republicans for their part have rejected the $1.8 trillion offer put forward by the White House last week.

Still, there is a broad expectation that a bill will eventually be passed — and with Joe Biden well ahead in polls and Democrats possibly taking both arms of Congress, talk is of a bigger package.

– Key figures around 1330 GMT –

London – FTSE 100: DOWN 0.5 percent at 5,970.12 points

Frankfurt – DAX 30: DOWN 1.0 percent at 13,004.51

Paris – CAC 40: DOWN 0.7 percent at 4,946.28

EURO STOXX 50: DOWN 0.6 percent at 3,277.43

New York – Dow Jones: DOWN 0.3 percent to 28,747.46

Tokyo – Nikkei 225: UP 0.2 percent at 23,601.78 (close)

Shanghai – Composite: FLAT at 3,359.75 (close)

Hong Kong – Hang Seng: Closed because of typhoon

Euro/dollar: DOWN at $1.1764 from $1.1813 at 2100 GMT

Pound/dollar: DOWN at $1.2975 from $1.3064

Dollar/yen: UP at 105.59 yen from 105.33 yen

Euro/pound: UP at 90.66 pence from 90.42 pence

West Texas Intermediate: UP 1.8 percent at $40.13 per barrel

Brent North Sea crude: UP 1.4 percent at $42.31 per barrel

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