Global shares slide amid fading economic recovery hopes
Global shares fell while the Dollar continued its gains earlier on Thursday as investor remained wary of another potential economic hit due to the COVID-19 pandemic, ahead of German sentiment data and speeches from officials from various central banks.
The infection rate in Europe has begun to rise sharply, with a number of countries including Britain introducing tougher rules to help limit the spread of the virus.
The global MSCI index slipped by 0.6% at 0733 GMT (3:33 AM ET), remaining in negative territory for its fifth consecutive day while hovering just above a two-month low. Asia Pacific shares outside Japan lost 1.93%, performing its worst in two months after U.S. Fed officials released their economic outlook. Meanwhile, the STOXX 600 in Europe fell by 1%.
U.S. Fed Vice Chair Richard Clarida and Cleveland Federal Reserve Bank President Loretta Mester both warned that the economy is likely to remain in a “deep hole”, with Clarida calling for more stimulus.
Investors are currently eyeing weekly data due for release later on Thursday, which is expected to show U.S. jobless claims fell slightly but remained elevated, indicating the world’s largest economy is far from recovering.