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By Ritvik Carvalho
LONDON, Jan 18 (Reuters) – Global stock markets plunged on Monday as rising COVID-19 cases dampened investors’ hopes for a quick economic recovery, while the Chinese economy posted a larger-than-expected rebound. in the fourth quarter of 2020.
* European stocks measured by the STOXX 600 index opened 0.3% lower, after the failure of merger negotiations between French retailer Carrefour and Canadian Alimentation Couche-Tard.
* The DAX index in Germany lost 0.2%, the CAC 40 in France lost 0.3% and the FTSE MIB in Italy erased 0.3%. The UK’s FTSE 100 index fell 0.1%.
* In Asia, Chinese top-tier stocks gained 0.8% after data showed the economy grew 6.5% year-on-year in the fourth quarter, beating projections of 6.1%.
* Industrial production data for December also beat expectations, although retail sales fell short. [L1N2JT0LY]
* The rally in China is in stark contrast to the United States and Europe, where the spread of the coronavirus has affected consumer spending, underscored by disappointing retail sales data released Friday in the United States.
* Weak US consumer spending data released last week helped Treasuries trim some of their recent heavy losses and 10-year yields were trading at 1.087%, down from last week’s high of 1,187%.
* The MSCI Global Index, which tracks stocks in 49 countries, was down 0.1% for the second straight session, after hitting record highs last week.
* S&P 500 e-mini futures fell 0.2%, although Wall Street will be closed on Monday for a holiday.
* The dollar index rose to 90.908, its highest level since Dec. 21, and was off its recent two-and-a-half-year lows of 89.206.
* The euro was trading at $ 1.2065, away from its January high of $ 1.2349, while the greenback was stable against the Japanese currency at 103.78 yen per dollar, well above its recent low of 102 , 57 yen.
* Gold prices were up 0.4% at $ 1,833 an ounce, compared to their January high of 1,959. Meanwhile, Brent crude oil futures fell 0.6% to $ 54.58 a barrel and US oil lost 0.4% to $ 52.15.
Chinese GDP Beats Expectations https://tmsnrt.rs/3oW0gjZ
China’s economy accelerates and ends 2020 in top shape after virus slump
China’s GDP grows 6.5% year-on-year in the fourth quarter of 2020 and exceeds expectations
SUMMARY-US retail sales fall, but manufacturing activity grows
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(Reporting by Ritvik Carvalho; additional reporting by Wayne Cole in Sydney; Edited in Spanish by Ricardo Figueroa)