Investors fret about economic impact of fresh COVID-19 shocks

Investors fret about economic impact of fresh COVID-19 shocks

LONDON: World stock markets retreated Friday as investors fretted about the economic impact of fresh virus shocks.

A raft of economic data highlighted the worsening situation for Europe, which is on course for a double-dip recession as new COVID-19 lockdowns hit hard.

After a mini boost for equities earlier in the week as US President Joe Biden took office, stock markets are also heading lower again as concerns mount that his $1.9 trillion rescue plan could hit hurdles.

The dollar climbed, while oil prices tumbled more than 2 percent.

Sterling, which Thursday hit a three-year high against the dollar on optimism over a UK vaccine rollout, then declined heading into the weekend on fresh recession expectations.

"The optimism of earlier in the week has evaporated,“ noted Chris Beauchamp, chief market analyst at IG trading group.

"Weaker... (data) readings and the prospect of a total UK travel ban have seen the leisure and travel sectors hit, as the outlook for the global economy continues to darken.“

European and Asian losses came despite a broadly positive lead from Wall Street on Thursday, where the Nasdaq fired to another record along with the S&P 500, though the Dow inched slightly lower.

The rises were helped by a series of upbeat US