Global stocks, oil prices slip as rising COVID cases prompt Chinese lockdowns

NEW YORK, Nov 21 (Reuters) – Global shares and oil prices slipped on Monday as a spike in COVID-19 cases and newly recorded deaths in China prompted authorities on the earth’s second-largest financial system to reinstate lockdowns, triggering worries over the influence on the financial system.

Beijing’s most populous district urged residents to remain at house on Monday as the town’s COVID case numbers rose, whereas not less than one district in Guangzhou was locked down for 5 days.

“It looked like zero COVID was moving in the right direction and everyone was excited but the Chinese government is taking some strong action and in the short term there’s going to be fits and starts,” mentioned Thomas Hayes, chairman of Great Hill Capital in New York.

MSCI’s broadest index of world shares (.MIWD00000PUS) fell 0.92%, whereas European shares (.STOXX) had been regular.

On Wall Street, all three main indexes had been buying and selling decrease, led by a selloff in know-how, vitality and shopper discretionary shares.

The Dow Jones Industrial Average (.DJI) fell 0.29%, to 33,646.88, the S&P 500 (.SPX) misplaced 0.58% to three,942.36 and the Nasdaq Composite (.IXIC) dropped 1.16% to 11,017.01.

Oil prices touched their lowest stage since early January on considerations of decrease Chinese gas demand owing to the COVID-19 lockdowns as effectively as stories that Saudi Arabia and different OPEC members are holding talks on a possible output improve.

Brent crude futures for January fell 5.32% to $75.82 a barrel, whereas U.S. West Texas Intermediate (WTI) crude futures for December had been down 5.19% to $83.07.

“With oil, there’s always the supply and demand picture and right now the market is looking for some insight on the demand side,” mentioned Cliff Hodge, chief funding officer at Cornerstone Wealth in Charlotte, North Carolina.

“Typically oil demand will plummet going into a slowdown or global recession especially this year, which we think is going to be somewhat exacerbated by China,” Hodge added.

The U.S. greenback superior towards most main currencies, recouping current losses, as merchants shunned riskier currencies over considerations in regards to the international financial outlook from the COVID curbs in China. The greenback index rose 0.926%, whereas the euro was down 0.87% to $1.0234.

Longer length U.S. Treasury yields dipped barely initially of a Thanksgiving holiday-shortened week, following knowledge indicating the U.S. financial system was slowing. The yield on 10-year notes was down to three.8119%, whereas the 30-year Treasury bond yield slid to three.8961%.

Gold prices slipped to their lowest in over every week as the greenback prolonged positive factors, whereas the market’s consideration turned to the U.S. Federal Reserve’s November assembly minutes due this week.

Spot gold dropped 0.8% to $1,735.89 an oz., whereas U.S. gold futures fell 0.90% to $1,736.10 an oz..

Reporting by Chibuike Oguh in New York, modifying by Deepa Babington and Chris Reese

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