Global stocks, yields plunge as investors wait for US stimulus
Gulf Today|August 07, 2020
Global stocks, yields plunge as investors wait for US stimulus
The number of Americans seeking jobless benefits fall but the US labour market is stalling amid COVID-19 resurgence; gold accelerates higher on fragile economic recovery hopes

Global equity markets slipped and bond yields fell on Thursday as investors awaited an agreement on a US aid package to mitigate the fallout from the coronavirus crisis, with poor corporate earnings reports also weighing on European shares.

Safe-haven gold extended its record-breaking run, driven by expectations of more stimulus to counter the pandemic, while the dollar gained after data suggested the US labour market is stalling amid a resurgence in COVID-19 cases.

Initial claims for state unemployment benefits fell 249,000 to a seasonally adjusted 1.186 million for the week ended Aug. 1, the labour Department said, the lowest reading since mid-March.

Other data on Thursday showed a 54% surge in job cuts announced by employers in July. The reports followed on the heels of news this week of a sharp step-down in private payrolls in July and continued declines in employment at manufacturing and services industries.

Initial claims for state unemployment benefits fell 249,000 to a seasonally adjusted 1.186 million for the week ended Aug. 1, the Labor Department said. That was the lowest since mid-March. Claims remain well above the peak of 695,000 during the 2007-2009 Great Recession.

Economists polled by Reuters had forecast 1.415 million applications in the latest week.

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August 07, 2020