For the third day this week, global stocks eased while oil dropped. Additionally, Wall Street saw a weaker open, as growing COVID-19 constraints impacted market sentiment.
Global equities traded down 0.3% while U.S. stocks decreased 0.1% due to weakness in most of Europe’s leading indexes. Additionally, oil prices fell 0.4% as demand expectations were hampered once more. The S&P 500 closed 1.1% lower, as the country’s COVID-19 deaths surpassed 250,000, setting off a host of lockdowns. Similar somber news in Japan sent the Nikkei down 0.4%. Earlier in the week, increased vaccine promotion and positive results pushed the MSCI World Index to a record high. However, this was stifled today as record infection rates and tougher lockdowns caused investors to pull back, dropping the index by 0.8%. German benchmark 10-year debt yields fell by 0.571%. Euro/Dollar and Sterling/Dollar shed 0.1% whereas Sterling/Euro weakened by 0.2%. Gold traders continued to see a week low while Bitcoin pulled back as well, standing at only $17,720.
Experts believe that recent vaccine updates caused markets to initially overshoot. Yet, with growing infection rates creeping up, the recent drop is expected. Some feel that markets are finally adjusting to the reality that any vaccines created will take time to be finalized, delivered, and administered. Overall, it looks like investors are attempting to gauge vaccine news against potential stalls in European and U.S. recovery measures amid lockdown extensions.