The UAE News web report: It was ‘black Monday’ for global stock markets in the wake of rising Covid-19 cases that disturbed the investors’ expectations of a quick economic recovery.

European stocks as measured by the STOXX 600 index opened 0.3 per cent weaker, after failed merger talks between French retailer Carrefour and Alimentation Couche-Tard .

Similarly, Germany’s DAX fell 0.2 per cent, France’s CAC 40 index fell 0.3 per cent and Italy’s FTSE MIB index slipped 0.3 per cent. Britain’s FTSE 100 index fell 0.1 per cent.

Asian stocks performed better as Chinese blue chips gained 0.8 per cent after the economy was reported to have grown 6.5 per cent in the fourth quarter, on a year earlier, topping forecasts of 6.1 per cent.

Industrial production for December also beat estimates, though retail sales missed the mark.

“The recovery in domestic demand still lacks a solid backing,” said Lauri Hallika, fixed income and FX strategist at SEB. “Sporadic virus outbreaks have intensified downside risks in the near term.”

Hallika said the impact of the latest regional lockdowns and mass testing is likely to be limited and short-lived.

The pick-up in China was a marked contrast to the United States and Europe, where the spread of coronavirus has hit consumer spending, underlined by dismal U.S. retail sales reported on Friday.

Poor U.S. consumer spending data last week helped Treasuries pare some of their recent steep losses and 10-year yields were trading at 1.087 per cent, down from last week’s top of 1.187 per cent.

The more sober mood in turn boosted the safe-haven U.S. dollar, catching a bearish market deeply short. Speculators increased their net short dollar position to the largest since May 2011 in the week ended Jan. 12.

Also evident are doubts about how much of U.S. President-elect Joe Biden’s stimulus package will make it through Congress given Republican opposition, and the risk of more violence at his inauguration on Wednesday.

Elsewhere in Asian markets, Japan’s Nikkei slipped 0.8 per cent and away from a 30-year high.MSCI’S All Country World Index, which tracks stocks across 49 countries, fell 0.1 per cent, down for a second session after hitting record highs only last week.

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