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. ©AFP ERIC PIERMONTStock markets lost ground on Monday as a spike in coronavirus infections around the world worried investors just as Europe was easing lockdown measures further.

While a wall of cash from governments and central banks has been providing support, observers say an equities rally since March may have been overcooked.

Key European markets were up to half a percent lower in the mid-afternoon.

On Wall Street, the Dow posted similar losses at the opening bell.

After last week’s broadly positive showing for stocks, traders had turned cautious on news of a jump in fresh virus cases across US states including California, Texas and Florida.

China, Australia, Germany and Japan are also battling new outbreaks with some reintroducing containment measures.

European countries are slowly emerging from their economy-sapping lockdowns, with Spain opening its borders and welcoming flights, while schools, cinemas and theatres reopened in France.

“What is vital for the economy is whether governments reimpose wide-sweeping lockdowns. With the overall count low globally, that’s unlikely, whereas proximity or soft lockdowns like in Beijing” were more probable, said Stephen Innes at AxiCorp.

But he did say that the fresh infections were “providing a sombre reality check, not only thwarting bullish ambitions, but investors are re-focusing on the negative economic consequences that could linger for some time”.

Oil prices dipped as output cuts by major producers and hopes for rising demand were tempered by worries over new infections.

On the corporate front, the value of Wirecard stock continued to plunge, with its share price down to around 16 euros, compared with almost 100 last Wednesday.

In what could be one of the biggest financial frauds of recent years, the payments firm admitted 1.9 billion euros ($2.1 billion) that auditors say are missing from its accounts likely “do not exist”.

– Key figures around 1330 GMT –

London – FTSE 100: DOWN 0.3 percent at 6,272.24 points

Frankfurt – DAX 30: DOWN 0.6 percent at 12,261.59

Paris – CAC 40: DOWN 0.6 percent at 4,952.06

EURO STOXX 50: DOWN 0.8 percent at 3,242.58

New York – Dow: DOWN 0.4 percent at 25,780.12

Tokyo – Nikkei 225: DOWN 0.2 percent at 22,437.27 (close)

Hong Kong – Hang Seng: DOWN 0.5 percent at 24,511.34 (close)

Shanghai – Composite: DOWN 0.1 percent at 2,965.27 (close)

West Texas Intermediate: DOWN 0.5 percent at $39.54 per barrel

Brent North Sea crude: DOWN 0.4 percent at $42.03

Euro/dollar: UP at $1.1223 from $1.1181 at 2040 GMT on Friday

Dollar/yen: UP at 106.89 from 106.84 yen

Pound/dollar: UP at $1.2412 from $1.2359

Euro/pound: DOWN at 90.42 pence from 90.46 pence

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(AFP)

Disclaimer: Validity of the above story is for 7 Days from original date of publishing. Source: AFP.