[ad_1]
LONDON (Reuters) – European stock markets and oil prices fell on Monday due to a dispute between top US officials. USA And China about the origin of the coronavirus fueled fears of a new trade war, derailing a rebound in world markets.
European stocks fell 2.5% in mid-morning trade, with sectors sensitive to economic growth, including oil and gas, automakers and banks, which fell between about 4% and 5.5 %.
Volatility indicators for world-class equities in Europe and America soared to a two-week high, while futures for US equities. USA They were around 1% in the red.
Previously, MSCI’s broader index of Asia-Pacific stocks outside Japan fell 2.5%, knocked down by Hong Kong, where the Hang Seng returned from a two-session vacation with its biggest drop in six weeks.
United States Secretary of State Mike Pompeo said Sunday there was “a significant amount of evidence” that the new coronavirus emerged from a laboratory in the central Chinese city of Wuhan.
The US dollar rose against most major currencies amid fears that the dispute between China and the US. USA Last year it was revived, this time by the origins of the pandemic that has paralyzed economies around the world.
The euro was down 0.37% at $ 1.0933 and the pound fell 0.72% to $ 1.2407.
Gold prices also increased when investors sought security. Spot gold rose 0.3% to $ 1,704.31 per ounce.
Pompeo did not provide evidence or question a previous US intelligence conclusion. USA That the virus was not created by man.
An editorial in the China Global Times said he was “bluffing” and asked the United States to present its evidence.
“Concern about the potential for another outbreak between the United States and China is dominating price action,” RBC strategist Adam Cole said in a morning note.
Simon Black, head of investment management at wealth management firm Dolfin, said investors were also adjusting their forecasts for the depth of economic damage the pandemic will inflict.
“The economic reality is also sinking,” he said, adding that a recovery in global stocks of more than 20% from the lows reached in March is unlikely to be sustainable.
Bounce: here
Companies listed on the pan-European STOXX 600 are expected to report a 40% decrease in earnings in the second quarter.
Manufacturing activity in the euro zone collapsed last month when government-imposed blockades to stop the spread of the new coronavirus forced factories to close and consumers to stay at home, a survey showed Monday.
“We have just emerged from a recovery in hope, not a recovery in fundamentals,” Black said, noting the massive monetary and fiscal stimulus promised by governments and central banks around the world.
Recent economic data shows a grim picture of the world economy after weeks of blockades.
In the United States, manufacturing fell to an 11-year low last month and consumer spending collapsed. Some 30.3 million Americans have filed unemployment claims.
Oil prices fell again, reducing gains from last week, due to concerns that excess global oil may persist even as locks begin to ease.
US West Texas Intermediate (WTI) futures fell 5.5% to $ 18.69 a barrel, while Brent crude futures fell 2.8% to $ 25.70.
Global coronavirus cases have exceeded 3.5 million and deaths have approached a quarter of a million, according to a Reuters count.
Julien Ponthus’ Reports; Hugh Lawson and Catherine Evans edition
