GLOBAL MARKETS-Stocks jittery as record U.S. virus count curbs risk appetite

* Equities and risk assets take a hit
* Safe assets in demand: yen, U.S. Treasuries rise
* China stocks fall 2% after red-hot rally; Europe up
slightly
* Growth in U.S. coronavirus cases unsettles markets
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh

By Thyagaraju Adinarayan
LONDON, July 10 (Reuters) - World stocks were choppy and oil
prices faltered on Friday as record numbers of new coronavirus
cases in several U.S. states raised concerns that more lockdowns
may be necessary, making a quick economic recovery unlikely.
The approach of the second-quarter earnings season, expected
to be the worst for Europe and the United States since the
2008/09 financial crisis, also pushed investors to chase
safe-haven assets, such as U.S. Treasuries and the Japanese yen.
European stocks .STOXX picked up, but they were just 0.4%
higher by midday after opening in the red, taking cues from Asia
where a recent rally in Chinese stocks came to a halt.
China shares .CSI300 fell 1.8% from a five-year high, as
state media discouraged retail investors from chasing the market
higher.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS fell 1%. Australian stocks .AXJO declined by
0.6% as an extension of loan-payment deferrals hit the banking
sector. Japanese stocks .N225 were down by 1.1%.
The e-mini futures for the S&P 500 EScv1 were down 0.3%.
More than 60,500 new coronavirus infections were reported
across the United States on Thursday, the largest single-day
tally of cases by any country since the virus emerged late last
year in China. "The sharp increase in confirmed cases has led to growing
concerns that a return to broad lockdowns lies ahead," Goldman
Sachs wrote in a note. "While lockdowns can slow down virus
spread effectively, they come at very high economic cost."
Economic data, however, continued to improve in the United
States. The number of Americans filing for jobless benefits
dropping to a near four-month low last week. But investors
remained cautious as a record 32.9 million people were still
collecting unemployment checks, supporting expectations the
labour market would take years to recover from the COVID-19
pandemic. "The dispersion in macro forecasts remains extremely high.
It therefore should not surprise when you see market volatility
turning on mixed pieces of news," said Elliot Hentov, head of
Policy and Research at State Street.

COVID-19 cases have also been rising in some Asian cities
that had appeared to have contained the disease, such as Tokyo,
Hong Kong and Melbourne, prompting investors to take shelter in
safe-haven assets.
In the currency market, the yen rose 0.4% against the dollar
JPY= and 0.2% versus the euro EURJPY= .
U.S. Treasury yields US10YT=RR slipped to their lowest
levels since late April. Gold was the only safe haven that
didn't join the rush-for-safety party, sliding 0.3%, a day after
hitting an eight-year high.
In other moves, the Australian and New Zealand dollars
AUD= NZD= , which are often traded as a liquid proxy for risk
because of their close ties to China's economy, were both under
pressure.
The Aussie also fell as local officials used lockdowns and
border restrictions to contain a sudden increase in coronavirus
cases. U.S. crude oil CLc1 fell 1.3% to $39.12 a barrel and Brent
crude LCOc1 dropped 1.1% to $41.90 per barrel amid concern
about a long-term decline in global energy demand.
The International Energy Agency bumped up its 2020 oil
demand forecast on Friday but warned that the spread of COVID-19
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Stocks, oil and coronavirus cases https://tmsnrt.rs/2ZNWaPi
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