GLOBAL MARKETS-Stocks at two-week lows as virus surge threatens reopening plans

* European stocks flat; World shares at 2-week lows
* Asia ex-Japan skids from 4-mth top; S&P 500 futures rise
* Deaths from COVID-19 reached half a million on Sunday
* Bonds supported on safe haven appeal, oil slips

By Thyagaraju Adinarayan
LONDON, June 29 (Reuters) - World shares were hovering near
two-week lows on Monday as the relentless spread of the
coronavirus in the U.S. curbed optimism over the global economy
and raised worries that some reopening plans will be delayed for
longer.
Global COVID-19 cases surged past the 10 million mark as
rising numbers in Australia and a big spike in Southern and
Western United States threatened to slow down economic recovery.
That led to subdued trading activity in Europe with the
STOXX 600 .STOXX index flat. Asian shares, meanwhile, ended
deep in the red playing catch up with Wall Street's ugly close
on Friday. E-Mini futures for the S&P 500 ESc1 were up 0.1%.
"Markets are attempting to figure out exactly what the new
norm will be given the threat of further outbreaks when
attempting to lift lockdown measures," said Joshua Mahony,
senior market analyst at IG.
California ordered bars to close on Sunday, following
similar moves in Texas and Florida amid rising cases. Washington
state and the city of San Francisco have paused re-opening
plans. The global death toll from COVID-19 reached half a million
people on Sunday, with a quarter of those in the United States,
where cases have surged in southern and western states.
"The market is caught in a real battle between recovery
optimism and news of increasing cases in certain geographical
areas such as the U.S," said John Woolfitt, director of trading
at Atlantic Capital Markets. "I think this battle will remain
until the U.S. get a handle on it."
MSCI's world shares index .MIWD00000PUS was off 0.1%,
hitting its lowest level since June 15 dragged down by Japan's
Nikkei .N225 shedding 2.3% and Chinese blue chips .CSI300
off 0.7%.
Sovereign bonds benefited from the shift to safety with
yields on U.S. 10-year notes US10YT=RR near 0.64%, having
briefly been as high as 0.96% early in June. German government
bond yields clung to one-month lows on Monday. DE10YT=RR
The U.S. dollar has generally gone in the opposite
direction, rising to 97.179 against a basket of currencies
=USD from a trough of 95.714 earlier in the month.
But the greenback struggled on Monday, sliding 0.3%, while
the euro EUR= rose 0.5% to $1.1280. FRX/
It is an important week for U.S. data with the ISM
manufacturing index on Wednesday and payrolls on Thursday, ahead
of the Independence Day holiday. Federal Reserve Chair Jerome
Powell is also testifying on Tuesday.
"U.S. economic data will reinforce that the economy is
through the worst of the recession in our view," said CBA
currency analyst Joseph Capurso.
"But a double-dip recession is possible if widespread
restrictions are reimposed, leading to a surge in the dollar."
In commodity markets, gold held near its highest since early
2012 at $1,773 an ounce XAU= . GOL/
Oil prices slipped amid concerns the pandemic would slow the
reopening of some economies, hitting demand for fuel. O/R
Brent crude LCOc1 futures fell 27 cents to $40.76 a
barrel, while U.S. crude CLc1 lost 23 cents to $38.26.

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