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Europe’s lockdown shakes Wall Street, boosts safe-haven assets

U.S.A.Europe's lockdown shakes Wall Street, boosts safe-haven assets

A trader looks at his screen at the New York Stock Exchange, USA. November 8, 2021. Reuters / Brendan McDermid

by Dhara Ranasinghe and Pete Schroeder

LONDON/WASHINGTON, Nov 19 (Reuters) – Growing concerns about COVID-19 as new lockdowns in Europe hit several sectors on Friday, plunging stocks and oil and boosting the dollar.

* Wall Street was uneven, hitting a new Nasdaq high thanks to a fall in the Dow Jones Industrial Average on fears of a stagnation of tech companies and economic recovery.

* The MSCI World Stock Index was down 0.16% and European shares fell from record highs as the specter of a new lockdown in Germany and other parts of Europe by COVID cast a shadow on the global economy.

* Markets went into a tailspin after word emerged that Austria would become the first Western European country to reimpose a total lockdown to combat a new wave of coronavirus infections, amid signs that Germany would follow suit. can follow.

* “A complete shutdown in Germany would be very bad news for the economic recovery,” said Swiss asset manager Vontobel’s Ludovic Colin. “This is what we saw in July and August of this year in parts of the world where delta was critical: (COVID-19) came back and slowed recovery again.”

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* These concerns fueled a nearly 3% fall in crude oil prices, while investors were betting on safe-haven assets like the dollar.

* The dollar advanced 0.4% and was on the verge of closing for the fourth consecutive week on the rise. Spot gold was also gaining momentum, correcting 0.19% to $1,862.03 an ounce.

* US Treasury yields were also falling on COVID fears as investors sought refuge. The benchmark 10-year notes showed a return of 1.522% after falling to 1.515%, the lowest since November 10.

* The United States House of Representatives on Friday approved a $1.75 trillion social spending bill that, if it becomes law, would meet some of President Joe Biden’s top priorities, such as new funds to fight climate change. ,

(Reporting by Alun John in Hong Kong and Yoruk Bahcelli and Julian Ponthas in London; Edited in Spanish by Carlos Serrano)

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