GLOBAL MARKETS-Equities dip, bonds edge higher as infection rates rise

By David Randall
NEW YORK, June 22 (Reuters) - Global equity benchmarks
dipped and U.S. government bonds edged higher Monday as
investors weighed rising coronavirus infections in parts of
Europe and the United States with the expectations of more
stimulus measures to support an economic rebound.
MSCI's broadest index of shares across the globe has gained
more than 40% since the March lows on hopes that the worst of
the pandemic was over. A jump in Germany's infection rate over
the weekend was seen as unlikely to trigger a massive second
wave or new lockdowns. "Markets have climbed back ... with stocks proving the
doubter wrong yet again as a world of stimulus trumps the
reality of economic and health struggles," said Joshua Mahony,
senior market analyst at IG.
MSCI's global index .MIWD00000PUS shed 0.16% following
modest declines in Europe and Asia.
In morning trading on Wall Street, the Dow Jones Industrial
Average .DJI fell 78.57 points, or 0.3%, to 25,792.89, the S&P
500 .SPX lost 5.49 points, or 0.18%, to 3,092.25 and the
Nasdaq Composite .IXIC added 5.48 points, or 0.06%, to
9,951.61.
The pandemic is accelerating globally with the World Health
Organization reporting a record increase in global coronavirus
cases on Sunday. "Coronavirus at-the-margin remains an overhang but the
opening up of Europe still looks on much more solid foundations
than the US/Americas," said Chris Bailey, Raymond James European
strategist.
Investors edged into perceived safe-haven assets like U.S.
government bonds. Benchmark 10-year notes US10YT=RR last rose
6/32 in price to yield 0.6806%, from 0.699% late on Friday.
The dollar index =USD fell 0.384%, with the euro EUR= up
0.45% to $1.1225.
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.
"Government debt/GDP ratios will rise by around 19
percentage points, nearly twice as much as in 2009 during the
(global financial crisis)... the rise in debt burdens will be
more immediate and pervasive, reflecting the acuteness and
breadth of the shock posed by the coronavirus." Moody's said.
Oil prices steadied on tighter supplies from major
producers, but concerns that the rising coronavirus cases could
curb demand checked gains.
U.S. crude CLc1 recently fell 0.5% to $39.55 per barrel
and Brent LCOc1 was at $42.06, down 0.31% on the day.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>