Oil, stocks gain, but rising infection rates spark concerns | Malay Mail

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NEW YORK, June 23 —  Crude oil prices and a gauge of global equity markets edged higher yesterday as lockdowns eased, with the Nasdaq setting a record closing high, but sentiment remained tenuous as coronavirus infections continued to rise. The dollar fell and higher risk currencies,...

Oil rose about 2 per cent on tighter supplies from major producers and as coronavirus lockdowns continued to ease, but gains were capped by worries that a worldwide rise in new infections might stall a recovery in fuel demand. — Reuters pic

Gold prices climbed 1 per cent to hit the highest in more than a month as investors took refuge in the safe-haven. “On one hand, the bulls have made their case for the fact that the opening up is going much better than expected. Yet the bears are looking at the number of cases that are starting to skyrocket,” Neel said. “There is a risk to the market that we have come a long way very quickly.”

The German reproduction rate jumped to 2.88 on Sunday, taking infections above the level needed to contain it over the longer term. The number was a sharp increase from 1.06 on Friday, according to the Robert Koch Institute.] On Wall Street, the Dow Jones Industrial Average rose 153.5 points, or 0.59 per cent, to 26,024.96 and the S&P 500 gained 20.12 points, or 0.65 per cent, to 3,117.86. The Nasdaq Composite added 110.35 points, or 1.11 per cent, to 10,056.48, a record close, as shares of Apple Inc hit an all-time peak.

Credit rating agency Moody’s warned that the stimulus measures will leave advanced economies with much higher debt than they accumulated during the last financial crisis.

 

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