The bear and bull statues outside the Frankfurt Stock Exchange. Picture: BLOOMBERG/ALEX KRAUSGlobal shares fell for the fifth straight day and the dollar remained firm in a flight to safety on Friday as rising coronavirus cases compounded concerns over Chinese growth and the outlook for US stimulus.
“However, nervousness about possible tapering by the Fed ahead of next week’s Jackson Hole speech by chair Jerome Powell, along with a potential Chinese growth slowdown have further played on investors’ minds, and brought the narrative a long way from the reflation hopes many had back in Q1.” “There are several reasons for the declines, but the main thing is the ongoing regulatory risk,” said Gary Ng, an economist at Natixis in Hong Kong, pointing as an example to falls in alcohol stocks, which are rumoured to be in the authorities’ sights.