Stocks Tread Water As 'summer Lull' Saps Energy

Stock markets moved mostly sideways on Thursday as investors lacked key news to give them a clear direction, dealers said

London, (UrduPoint / Pakistan Point News - 9th Jul, 2020 ) :Stock markets moved mostly sideways on Thursday as investors lacked key news to give them a clear direction, dealers said.

Lingering fears of resurging virus cases in some parts of the world kept investors on edge, and although a lower-than-expected number in last week's US jobless claims helped sentiment, the employment situation is still too dire for comfort, they said.

"Markets are dealing with the summer lull... but volume is lower, which is causing a lack of movement and some erratic moves," Scope Markets analyst James Hughes told AFP.

"There is a feeling of wait-and-see as earnings season in the United States begins next week, so markets are a little subdued." European key indices were mixed, with London down and Frankfurt and Paris up, while on Wall Street the Dow Jones index opened a touch lower.

"It looks like it will be a day of drift and indecision for markets, thanks to a light economic and corporate Calendar," added IG analyst Chris Beauchamp.

A giant wall of money stumped up by governments and central banks has been providing crucial support to nervous equity traders, even as some countries reimposed certain containment measures.

There was better news in Asia, where Shanghai rallied more than one percent as data showed a pick-up in inflation that indicates the world's number-two economy continues to improve.

Sydney rebounded 0.6 percent after Wednesday's sharp drop as Australia's second-biggest city Melbourne imposed a fresh lockdown on five million residents to combat a new virus outbreak.

Uncertainty about the outlook, along with expectations that borrowing costs will remain anchored for some time, have sent haven investment gold soaring by about a fifth this year and its price is now sitting above $1,800 for the first time since 2011.

Global politics remain a simmering worry for markets, as tensions between the US and its allies and China worsen.

"Risk appetite is struggling as the coronavirus spread is still not under control in most parts of the world and as geopolitical tensions between China and the West intensify," said Edward Moya, an analyst with OANDA.

- Key figures around 1340 GMT - London - FTSE 100: DOWN 0.6 percent at 6,117.86 points Frankfurt - DAX 30: UP 1.3 percent at 12,650.50 Paris - CAC 40: UP 0.1 percent at 4,988.71 EURO STOXX 50: UP 0.5 percent at 3,301.23 New York - Dow: DOWN 0.3 percent at 25,996.60 Tokyo - Nikkei 225: UP 0.4 percent at 22,529.29 (close) Hong Kong - Hang Seng: UP 0.3 percent at 26,210.16 (close) Shanghai - Composite: UP 1.4 percent at 3,450.59 (close) West Texas Intermediate: DOWN 0.8 percent at $40.59 per barrel Brent North Sea crude: DOWN 0.3 percent at $43.18 Euro/dollar: UP at $1.1335 from $1.1330 at 2100 GMT Dollar/yen: DOWN at 107.25 Yen from 107.26 yenPound/dollar: UP at $1.2660 from $1.2610Euro/pound: DOWN at 89.54 pence from 89.85 pence