© Reuters. FILE PHOTO: A man wearing a protective face mask after a coronavirus disease (COVID-19) outbreak walks in front of a listing board outside a brokerage in Tokyo, Japan on March 10, 2020 on March 10, 2020. REUTERS / Stoyan Nenov
By Chris Prentice and Marc Jones
WASHINGTON / LONDON (Reuters) – European stocks cut losses and Wall Street reversed earlier gains on Thursday as investors weighed uncertainty over central bank throttling and economic recovery due to the coronavirus delta variant against strong weekly jobless claims data .
Major US indices were lower, pulling back on previous gains, but still close to all-time highs.
The decline fell 133.74 points, or 0.38%, to 34,897.33, that dropped 14.45 points, or 0.32%, to 4,499.62, and that fell 4.28 points, or 0.03%, to 15,282.36 at 2:14 p.m. EDT (1814 GMT)
Federal Reserve Bank Governor Michelle Bowman on Wednesday added her vote on the growing number of policymakers who say the weak August labor report likely spurred the central bank's plan to increase its $ 120 billion monthly bond purchases Reducing it later this year is not going to nullify it.
Earlier in the day, U.S. data showed that the number of Americans filing new unemployment benefits fell to its lowest level in nearly 18 months last week, which is more evidence that labor shortages have hampered job growth rather than that To cool demand for labor.
After a minus of 0.9% in morning trading, the pan-European index ended largely unchanged at 467.57 points. The index had lost 1.5% in the past two days as the ECB fears that the ECB is more restrictive than expected.
Eurozone bond yields fell as the European Central Bank took its first tentative step to pull back on stimulating the COVID era. Southern Europe caused government bond yields in the eurozone to decline.
The euro was up 0.15% against the dollar, rising for the first time in four sessions as bond markets cheered by sending French 10 yields back into negative. (GVD / EUR)
“We are seeing a modest weakness, mainly because the market is currently changing. There is no real clarity as to when the Fed and the ECB will begin withdrawing the incentives, ”said Edward Moya, a senior market analyst at OANDA in New York.
Instead of pointing out a possible end date for her pandemic-era purchase program, European Central Bank President Christine Lagarde instead channeled the spirit of former UK Prime Minister Margaret Thatcher, saying, "The lady is not rejuvenating."
Germany's 10-year yield, the benchmark for the block, fell. (GVD / EUR)
MSCI's global equity market benchmark fell 0.33% to 740.33. Emerging market stocks fell 1.18%.
In the UK, the value fell 1% while the low-cost airline easyJet (LON 🙂 plunged over 10% as it tapped shareholders for £ 1.2 billion ($ 1.7 billion). ()
The broadest index of MSCI stocks in the Asia Pacific region lost 1% in the worst daily performance since August 19, when the last time markets decided they were concerned the US Federal Reserve was closing its massive program Restricting asset purchases.
Chinese tech giants Tencent, NetEase (NASDAQ 🙂 and Alibaba (NYSE 🙂 had slumped 8.5%, 11% and 6% respectively after online gaming bosses were summoned by the authorities to verify that they were complying with the tough new rules for the sector.
"The global story looks weak and is being hit by the delta variant and concerns that the Fed may still be tapering," said Rob Carnell, ING's Asia research director. "It's a disturbing combination of things."
Fear of China caused Hong Kong, where many heavy Chinese companies are also listed, to lose 2.3%.
News that Chinese authorities had ordered gambling companies to firmly contain false tendencies such as a "money only" and "traffic only" focus had hurt companies with large gambling establishments. Tencent was down 8.5%, Bilibili (NASDAQ 🙂 was down nearly 9%, and NetEase was down 11%.
There was also further turmoil for the country's most heavily indebted real estate giant, Evergrande.
According to media reports, the company would suspend some interest payments on loans and payments to its wealth management products caused its shares to fall more than 10% at one point, despite making up almost half of the decline when it was revealed that some creditors had agreed to extend the loan payment .
Korea's Kospi fell 1.5%, also under pressure from regulatory scrutiny from local tech companies. In the case of Korea, fintech names like Kakao Corp, down 7.2%, and Naver Corp, down 6.9%, were in the spotlight.
Australian stocks lost nearly 2% after salary data showed a sharp drop in jobs in the first half of August.
Gold stabilized in troubled trading, supported by a slight decline in the dollar. Spot bar prices rose 0.4%.
Oil prices fell on China's plan to develop government reserves and a smaller-than-expected drop in inventories.
most recently by USD 1.14 or 1.57% to USD 71.46 a barrel. US crude last fell $ 1.16, or 1.66%, to 68.15%.
($ 1 = 0.7246 pounds)