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Investors who were hoping the Bank of England would lay the foundation for further stimulus measures if necessary were left wanting and the pound fell. ©AFP/File Tolga AkmenStock markets eased back on Thursday as worries that the world has not seen the last of the coronavirus pandemic caused nervous investors to take profits after a recent strong run.

US numbers showing that 1.5 million workers filed for unemployment benefits last week added to jitters about the economic outlook.

In Europe, investors were underwhelmed by the Bank of England’s latest monetary policy decisions, which undermined both the pound and London stocks.

Wall Street fell around 200 points at the opening bell, while European stocks were down by a percent or more, having extended opening losses.

“US stocks are lower in early action, after snapping a string of gains yesterday, with the global markets remaining a bit cautious as uncertainty regarding a second wave of COVID-19 continues to simmer, countering recent economic data that has suggested improvement as economies reopen,” said analysts at Charles Schwab.

Earlier, Asian equity indices had closed mixed after a two-day rally.

The Bank of England on Thursday unveiled an extra £100 billion of cash stimulus to prop up Britain’s coronavirus-hit economy, a figure in line with expectations, but analysts said the market had hoped for some forward-looking reassurance.

“BoE watchers could feel a little short-changed,” said Kallum Pickering at Berenberg.

“The market had expected a clear signal that the BoE would ease policy significantly further at a later date or that the bank was seriously contemplating further expanding its toolkit in response to the COVID-19 mega-recession,” he said.

While countries are slowly reopening their economies — with flights resuming, bars, cafes and restaurants serving people and professional football returning — new infections continue to surge in some places and are flaring up again in others.

Eyes are on Beijing, which has imposed new lockdowns, closed schools and banned flights again after the emergence of new clusters, while there have also been massive spikes in Texas and Florida.

– Key figures around 1335 GMT –

London – FTSE 100: DOWN 1.0 percent at 6,192.85 points

Frankfurt – DAX 30: DOWN 1.5 percent at 12,197.13

Paris – CAC 40: DOWN 1.7 percent at 4,913.43

EURO STOXX 50: DOWN 1.2 percent at 3,229.50

New York – Dow: DOWN 0.8 percent at 25,923.68

Tokyo – Nikkei 225: DOWN 0.5 percent at 22,355.46 (close)

Hong Kong – Hang Seng: DOWN 0.1 percent at 24,464.94 (close)

Shanghai – Composite: UP 0.1 percent at 2,939.32 (close)

Pound/dollar: DOWN at $1.2444 from $1.2551 at 2050 GMT

Euro/pound: UP at 90.21 from 89.54 pence

Euro/dollar: DOWN at $1.1224 from $1.1242

Dollar/yen: UP at 106.75 yen from 106.97

West Texas Intermediate: FLAT $37.96 per barrel

Brent North Sea crude: UP 0.3 percent at $40.83 per barrel

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(AFP)

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