GLOBAL MARKETS-Global shares waver on coronavirus fears

* European stocks open lower
* Oil prices slip on oversupply fears
* Gold near 8 1/2-year high on safe-haven demand
* China blue-chip stocks close at five-year high
* World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Tom Arnold and Swati Pandey
LONDON/SYDNEY, July 8 (Reuters) - Global stocks faltered on
Wednesday, losing momentum after a five-day rally, as an
increase in new coronavirus cases in some parts of the world
undermined prospects for a quick economic recovery. Oil prices
fell on oversupply fears.
Frankfurt .GDAXI , Paris .FCHI and London .FTSE all
opened lower in early trading as investors shifted to wait-and-
see mode before upcoming earnings and clung to the perceived
safety of the U.S. dollar =USD . GVD/EUR /FRX
It was a rosier picture in Asia, where Chinese stocks
extended their gains to seven sessions, with the blue-chip index
.CSI300 up 1.6% to its highest close since June 2015. MSCI's
broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS was up 0.5%, still lower than a
four-and-a-half-month high reached the day before.
E-mini futures for the S&P 500 EScv1 were up 0.1%.
Overnight, U.S. stocks fell, halting a five-day winning
streak by the benchmark S&P 500 index, its longest this year,
driven by better-than-expected economic data. "It is impossible for investors not to grow weary and
eventually, at some point, fall prey to the endless drip of
negative Covid-19 stories and how the second-wave virus will
crush the market," said Stephen Innes, chief global market
strategist at AxiCorp.
"Despite the lack of market participation, it certainly
feels like we are gradually morphing from the view of a fragile
recovery to one of full-bore scepticism."
Second-quarter earnings season begins in earnest next week.
"It will be important to watch the number of U.S. deaths in
coming weeks and whether greater questions will be asked about
the extent of necessary restrictions," said NAB economist Tapas
Strickland.
California reported more than 10,000 coronavirus cases on
Tuesday, a record rise for a single day. That exceeded the
number of contact tracers recently trained by the state to
detect and prevent potential outbreaks. Coronavirus cases were also on the rise in the Australian
state of Victoria, which led to lockdown measures being
re-imposed in Melbourne, the country's second-biggest city.
MSCI's All-Country World Index .MIWD00000PUS , which tracks
shares across 49 countries, was flat after a five-day rally.
Citi analysts predicted global equities would hang around
current levels in 12 months' time.
"We expect bullish and bearish forces to cancel each-other
out," they said in a note. "We would not chase markets higher
from current levels, but would prefer to wait for the next dip."
Citi has "overweight" positions on U.S. and emerging-market
equities.
Bond markets were focused on a meeting on Wednesday between
European Union officials to discuss the shape of the EU's
recovery fund.
Yields of German 10-year government debt DE10YT=RR edged 2
basis points lower to -0.477%, just above a one-week low of
-0.495%. Yields for Italian bonds, which have been the biggest
beneficiary of the EU recovery fund proposals, were steady.
The dollar held its ground as investors struggled to make a
call on risk sentiment. Swift economic recovery hopes and fears
of a resurgent pandemic blurred the overall picture.
Against the euro, the dollar was quoted at $1.1278, also
holding to a 0.3% gain from the previous session.
Sterling GBP=D3 traded at $1.2549, near three-week highs,
before British finance minister Rishi Sunak announced his next
moves to prevent a wave of job cuts from damaging an already
weakened economy. In commodities, gold remained near an eight-and-a-half-year
high as investors preferred safe-haven assets. Spot gold XAU=
was 0.1% stronger at 1,795.1 per ounce. GOL/
Brent crude LCOc1 futures fell 0.1%, to $43.03 a barrel.
U.S. West Texas Intermediate (WTI) crude CLc1 futures slipped
0.12%, to $40.57 a barrel. O/R

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
World's biggest stock markets since start of 2020 https://tmsnrt.rs/38wlrSj
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Editing by Larry King)