European countries announce new restrictions amid a rise in infections
Wall Street equities saw their first weekly loss following three weeks of gains, with big technology stocks leading losses last Friday. Mixed retail sales data coupled with a bearish report on consumer confidence added to the negative tone in the markets. As such, the S&P 500 fell 0.75%, the Dow Jones Industrial Average dropped 0.86%, and the tech-heavy Nasdaq Composite slid 0.80%.
Rising COVID-19 infections in the region pushed Asian stocks lower on Monday, with outbreaks growing in Indonesia, Malaysia and Thailand, as well as parts of Japan. Japan’s benchmark Nikkei 225 shed 1.25%, South Korea’s Kospi slipped 1.00% while Australia’s S&P/ASX 200 dipped 0.85%. Hong Kong’s Hang Seng fell 1.84%, while the Shanghai Composite edged down 0.01%.
In Europe, stocks opened lower as risk aversion persists at the start of the week. The Stoxx Europe 600 fell more than 1% in early trade amid continuing concerns over rising numbers of Covid-19 cases. Of note, France, the Netherlands, Greece, and Spain announced new restrictions in a bid to curb a rise in infections in the region.
Meanwhile, the safe-haven dollar extends the ascent amid the prevailing risk aversion. The USD index added to recent gains and was last seen approaching the 93.00 figure, advancing for the third session in a row on Monday.
Against this backdrop, EURUSD slipped to fresh April lows around 1.1765 and could now target the 1.1740 area if the pressure persists in the short term. On the data front, Eurozone’s construction output came in at 0.9% in May versus -2.2% m/m prior. However, the report did little to ease the selling pressure surrounding the common currency.
