Por Simon Jessop
LONDON, Sept 24 (Reuters) – Global stocks fell and the dollar hit a two-month high on Thursday on investor concerns about another economic hit from the coronavirus pandemic ahead of the release of key U.S. unemployment data. and comments from the head of the Federal Reserve.
* After a truce during the boreal summer in most of Europe, the infection rate began to increase strongly, so countries like the United Kingdom introduced tougher rules to try to limit the spread of the virus.
* Fears that the market rebound of the past few months had gone too far kept stocks down, although positive data on business sentiment in Germany and France helped reduce losses in Europe.
* The MSCI World Stock Index was down 0.5% at 1018 GMT, its fifth day in the red in the past six sessions, close to a two-month low. A broad measure of major European stocks, the STOXX 600, was down 0.4%.
* S&P 500 index futures were stable after declines the day before due to economic warnings from Federal Reserve authorities.
* This situation increased the weakness in Asia overnight, where Asia-Pacific stocks excluding Japan lost 1.99%, closing their worst day in two months.
* The inflows in the dollar helped it to grow for the fourth consecutive session. Although earnings were trimmed slightly since the open, they are still on track for their longest streak of daily gains since June.
* The euro was unchanged at $ 1.1658.
* The slight improvement in sentiment helped crude prices to recover from initial losses and trade flat, although gold was down 0.6%, heading for its fourth day of losses, totaling almost 7%.
* At a time when central bankers are in the spotlight worldwide, Fed Chairman Jerome Powell will be scrutinized later in the day when he testifies before the Senate Banking Commission, while other Fed officials will also speak during the day.
* Investors are also waiting for weekly unemployment data in the United States to be released later in the day and are expected to show that the recovery of the world’s largest economy is still far away.
(Additional reporting by Imani Moise in New York and Marc Jones, Saikat Chatterjee and Sujata Rao in London; edited in Spanish by Carlos Serrano)