Resurging COVID-19 infections have prompted many economies to slide back into lockdowns, sending oil prices into five-month lows and extending losses in Asian shares. Last week, the world’s COVID-19 cases exceeded 500,000, with Europe crossing the 10-million milestone. The UK recorded over 20,000 new cases a day, while in the US, up to 1,000 people are killed by the virus every day.
On early Monday, MSCI’s broadest index of Asia-Pacific shares excluding Japan was down 0.1% to near a-month lows of 569.86. Japan’s Nikkei rose 0.6%. Australia’s and New Zealand’s benchmark index eased by 0.1% and 0.6%, respectively. On Friday, the S&P 500 dropped 1.21% to 3,269.96. The Nasdaq Composite lost 2.45% while the Dow decreased 0.6%.
Reimposed lockdowns have cast a grim outlook on fuel consumption, sending Brent crude prices to $35.74/barrel, the lowest since May. US WTI crude prices also dipped to $33.64/barrel. In the currency market, the Australian dollar fell 0.4% to below 70 US cents for the first time since July. The euro lost 0.1% to $1.1639. British Pound Sterling dropped slightly to $1.2927, while Japan’s yen strengthened a bit to $104.57. The dollar index was up 0.08%.
