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NEW YORK (Reuters) – The dollar rose on risk aversion and global stock markets fell on Monday as disputes between the United States and China over the origin of the coronavirus outbreak aroused fear of a new trade war, but Wall Street fell recovered when the lifting of blockades in some US states. USA They fueled optimism.
US stocks rebounded at the end of the session, with the Nasdaq gaining more than 1 percent as New York became the last state to announce a gradual reopening of business activity, starting with select industries.
“The key change this afternoon came from the optimistic tone (of) the California governor,” said Edward Moya, senior market analyst at OANDA. “Some regional openings in California helped financial markets end the day on a positive note.”
“People want to believe that things are going to get better,” said Rick Meckler, a partner at Cherry Lane Investments in New Vernon, New Jersey. “All of these announcements of state plans to reopen have given investors some optimism that things can only get better from here.”
Oil prices rose after settlement prices showed modest gains, but the strengthening dollar and safe-haven gold held firm.
An increase in risk aversion came as business surveys showed that Asian and European manufacturing activity in April fell more sharply in contraction, adding to a bleak outlook as government shutdowns to contain the pandemic froze the global production and reduced demand.
The US Secretary of State. The US, Mike Pompeo, said Sunday that there was “a significant amount of evidence” that the coronavirus emerged from a Chinese laboratory, comments that rocked investors, although he did not question the conclusion by US intelligence agencies. USA That it was not artificial.
An editorial in the China Global Times said he was “bluffing” and asked the United States to present its evidence.
“New tariff headlines and supply chain disruptions come at a time when global growth expectations are already fragile,” said Simon Harvey, currency analyst at broker Monex Europe.
New orders for U.S.-made products saw a record decline in March and could sink further as pandemic-related disruptions fracture supply chains and depress exports, the Commerce Department said in a series of reports from increasingly grim economic data.
IHS Markit final manufacturing PMI for the eurozone fell to 33.4, its lowest level since the survey began in mid-1997 and well below the 50-point line dividing growth from contraction.
The pan-European STOXX 600 index closed down 2.65%, while the MSCI stock indicator worldwide lost 0.66%.
Wall Street rose after Dow and S&P 500 industrialists traded lower for most of the session.
The Dow Jones Industrial Average increased 26.07 points, or 0.11%, to 23,749.76. The S&P 500 gained 12.03 points, or 0.42%, to 2,842.74 and Nasdaq Composite added 105.77 points, or 1.23%, to 8,710.72.
The Nasdaq moved more.
“If you’re going to buy this market, psychologically you want to buy the companies that you think can really work well,” Meckler said. “This has been a very difficult market for the bottom of the fish, to buy the injured names.”
Airline stocks were hurt after billionaire Warren Buffett’s Berkshire Hathaway left shares in major US airlines, but reduced losses as the market recovered.
Shares of Delta Air Lines Inc, American Airlines Group Inc, Southwest Airlines Co and United Airlines Holdings Inc fell between 5.1% and 7.7%, as Buffett said “the world has changed” for the aviation industry.
Previously, MSCI’s broader Asia-Pacific stock index outside of Japan fell 2.5%, knocked down by the Hang Seng in Hong Kong.
The dollar rose against most major currencies. The dollar index was up 0.288%, with the euro falling 0.76% to $ 1.0899.
The Japanese yen strengthened 0.25% against the dollar at 106.72 per dollar.
Gold surged as tensions between the United States and China over the coronavirus outbreak fueled fears of a new trade war, prompting investors to seek safe havens.
US Gold Futures USA They settled 0.7% more, at $ 1,713.30 an ounce.
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.
(GRAPHIC: Bounce – here)
Global coronavirus cases have exceeded 3.5 million and deaths have approached a quarter of a million, according to a Reuters count.
Brent crude futures rose 76 cents to settle at $ 27.20 a barrel, while US crude futures added 61 cents to hit $ 20.39 a barrel. WTI from USA USA Later he added around $ 1 a barrel, and Brent almost the same.
Benchmark 10-year notes rose 4/32 in price for the last time to yield 0.6289%.
(This story has been completed to correct typographical errors in paragraph 2.)
Herbert Lash’s report; editing by Jonathan Oatis
