Global shares slide, dollar up as hopes of economic recovery fade

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Global shares slid and the dollar rose on Thursday on investor concern about another economic hit from the coronavirus pandemic, ahead of German sentiment data and speeches from a clutch of central bankers.

FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, September 23, 2020. REUTERS/Staff/File photo

Yet political stalemate in Washington continues to frustrate efforts to prop up the world’s biggest economy, beset by one of the worst COVID-19 death rates globally. Flows into the dollar helped up it rise for a fourth straight day, leaving it on track to record its longest streak of daily gains since June and now nearly 3% off its August lows.

Commodities priced in dollars fell as a result, with Brent crude futures down 0.7% at $41.45 a barrel and gold down 0.2% - on course for a fourth day of losses that total nearly 7%.“A stronger USD remains a significant headwind for commodity markets, with investor appetite waning,” ANZ analysts said in a note.

In emerging markets, both the Turkish and Mexican central banks are set to decide on monetary policy. MSCI’s Emerging Markets Index was down 1.8% at 0814 GMT.

 

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