Global shares down amid COVID-19 resurgence, U.S. stimulus deadlock

Global shares slumped earlier on Thursday after the resurgence of COVID-19 cases in Europe and the standstill of a U.S. Treasury decision for a stimulus package before the November 3 presidential elections dampened market sentiment.

The MSCI’s broadest index of Asia-Pacific shares outside Japan fell by 0.6%, while Japan’s Nikkei lost 0.5%.

European shares along with pan-European Euro futures fell by 0.7%.

Meanwhile, S&P 500 futures slipped by 0.25% in Asia after major U.S. stock indexes closed on a weaker note in the previous session.

Gains were further constrained amid mounting concerns that a resurgence in COVID-19 cases could lead governments to return to imposing restrictions.

Governments in Europe have already closed schools and have begun enlisting student medics in a bid to curb the pandemic.