Global shares, oil prices falter as US stimulus buzz fades

Global shares, oil prices falter as US stimulus buzz fades

LONDON: Global shares stumbled on Friday as hopes of a fiscal boost from a $1.9 trillion US stimulus plan were smothered by the prospect of stricter lockdowns in France and Germany and a resurgence of COVID-19 cases in China.

European stocks followed Asian markets lower, with the pan-European STOXX 600 down 0.8 percent and London's FTSE 100 0.8 percent weaker, with the latter clobbered by data showing Britain's economy shrank in November for the first time since the initial COVID-19 lockdown last spring.

The MSCI world equity index, which tracks shares in 49 countries, was 0.3 percent lower. S&P 500 e-mini futures shed 0.3 percent to 3,779.

Oil prices, which had risen on a weak dollar and strong Chinese import data, dropped as COVID-19 concerns in China hit sentiment.

Brent was down $1.33, or 2.3 percent, after gaining 0.6 percent on Thursday. US West Texas Intermediate crude was down $1.17, or 2.1 percent at $52.44 a barrel, having risen more than 1 percent the previous session.

Brent and US crude were heading for their first weekly declines in three weeks.

Spot gold rose 0.1 percent to $1,847.00 per ounce.

While oil producers are facing unparalleled challenges balancing supply and demand equations with calculus involving vaccine rollouts versus