Market Rallies Slowed on Thursday. How did Stocks Fare? 

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Asian Stocks: Panoramic evening view with the digital financial chart.

Market Rallies Slowed on Thursday. How did Stocks Fare? 

Global stocks gained $6 trillion this month due to a big rally. However, it slowed down on Thursday as investors began selling cyclicals. They returned to tech shares instead due to their safe-haven status amidst a deteriorating Covid-19 situation. Treasuries also surged forward.

 

European stocks were on course for their first decline of the week after a disappointing earnings report tied to the coronavirus pandemic. However, tech shares remain in a bright spot thus far. Futures on the S&P 500 Index tumbled down, while the Nasdaq 100 contracts rebounded and turned the previous loss into a 0.4% gain.

 

Overall, the Stoxx Europe 600 Index plummeted down by 0.3%, while Nasdaq 100 Index futures surged forward by 0.4%. Futures on the S&P 500 Index lowered by 0.1%. On the other hand, the MSCI Asia Pacific Index climbed up by 0.1%.

 

The U.K.’s Legal & General Group Plc assisted in pulling down fellow insurers, stating it may keep its final 2020 dividend flat. Meanwhile, Siemens AG dropped down after releasing a cautious 2021 outlook. The stock has also proposed a dividend cut.

 

Investors’ concerns that rising Covid-19 infections will hinder the economic rebound threatening this month’s nearly 10% surge in global equities. On Thursday, the International Energy Agency cut forecasts for global oil demand during the new lockdowns. It warned that a vaccine breakthrough wouldn’t quickly boost markets. So, investors kept an eye on new restrictions emerging from New York to Hong Kong.

 

Torsten Slok, the chief economist at Apollo Global Management Inc., stated that in the near term, the resurgence of the Covid-19 is beginning to cause new concerns. It seems like this will end up being a W-shaped recovery.

 

The pandemic remains a threat to the global economy

 

Global deaths increased by more than 12,000.  New daily cases in the U.S. set a record, with the early epicentre of New York taking measures to hinder a fresh wave. According to New York City’s order, bars and restaurants with liquor licenses must close at 10 p.m. Meanwhile, new infections may be easing or steadying in some of Europe’s COVID-19 hot spots.

 

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Due to successful vaccine testing, Moderna Inc. surged forward by almost 5% in pre-market trading after announcing its trial has reached a key target and is now ready to start analyzing the shot’s effectiveness.

 

European Central Bank President Christine Lagarde and Federal Reserve Chairman Jerome Powell plan to speak on Thursday along with Governor Andrew Bailey at an online ECB Forum – “Central Banks in a Shifting World.” Furthermore, the U.S. CPI data for October is also due on Thursday.

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