NEW YORK (Reuters) – Shares fell on Friday as data from China, the eurozone and the United States dampened expectations of a sustained global rebound, with traders already worried about a delay in the US fiscal stimulus.
FILE PHOTO: The front facade of the New York Stock Exchange (NYSE) is seen in New York, New York, US June 26, 2020. REUTERS / Brendan McDermid
European stocks were weighed again by a blow to travel documents after Britain added more European countries, including France, to its quarantine list.
The pan-European STOXX 600 lost 1.17%, although it is still on track to win for a second week in a row.
On Wall Street, a slowdown in retail sales growth last month and concerns about the continuation of consumer retracement weighed on stocks, with major indices mixed but not far from records.
Retail sales figures “suggest that the recovery has continued to continue even in the face of resurgent cases of the virus,” Michael Pearce, senior US economist at Capital Economics, said in a note.
“The expiration of additional federal unemployment benefits at the end of July presents a risk of lower spending in the short term,” he added, stressing that he believes “consumption growth will gradually pick up. from here.
The Dow Jones Industrial Average rose 30.44 points, or 0.11%, to 27,927.16, the S&P 500 gained 1.5 points, or 0.04%, to 3,374.93 and the Nasdaq Composite fell 33.61 points, or 0.3%, to 11.008.90.
The MSCI World Index lost 0.22%, moving away from all-time highs reached in February. The index is still up nearly 50% from the March low despite the COVID-19 pandemic.
The euro area recorded the largest drop in employment on record in the second quarter. The data also confirmed a record decline in gross domestic product in the last quarter and a widening of the euro area’s trade surplus with the rest of the world.
Data showing a slower-than-expected rise in Chinese industrial production and a surprise drop in retail sales put Asian stocks on the defensive.
The largest MSCI index of Asia-Pacific stocks outside of Japan fell 0.2%, although stocks in Japan rose 0.2%.
Chinese stocks rose 1.5% in volatile trade, with data suggesting domestic demand is still struggling after the coronavirus outbreak.
Yields on US Treasuries fell but remained high after a 30-year bond auction on Thursday met weak demand.
The benchmark 10-year notes were last up 7/32 to yield 0.6931%, up from 0.716% on Thursday night.
Some traders remained on the sidelines before a meeting between U.S. and Chinese officials on the two countries’ Phase 1 trade deal on Saturday.
Gold fell and was on track for its biggest weekly drop since March, after a nine-week streak of gains.
Spot gold fell 0.6% to $ 1,940.76 an ounce. Silver, also on track for a weekly loss after a long streak of gains, fell 3.51% to $ 26.59.
The dollar index was heading for an eighth straight week of losses, its longest weekly streak of losses in a decade.
The index fell 0.151%, with the euro up 0.16% to $ 1.1831.
The Japanese yen strengthened 0.41% against the greenback to 106.48 per dollar, while the British pound last traded at $ 1.3104, up 0.31% on the day.
Oil fell below $ 45 a barrel again, giving up some of this week’s gain, under pressure from doubts about resuming demand due to the COVID-19 pandemic and increased supply .
US crude recently fell 0.33% to $ 42.10 a barrel and Brent was at $ 44.84, down 0.27% on the day.
Reporting by Rodrigo Campos; Additional reporting by Alex Lawler and Tom Arnold in London, Ambar Warrick and Medha Singh in Bengaluru and Karen Brettell and Gertrude Chavez-Dreyfuss in New York; Edited by Dan Grebler