* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh
* Reuters Live Markets blog on European and UK stock
markets:
LIVE/
By Elizabeth Howcroft
LONDON, Aug 4 (Reuters) - European shares fell after opening
higher, following a mixed bag of earnings results, while the
dollar's rebound stalled as investors waited for progress in
talks on government aid in the United States.
Strong U.S. manufacturing data boosted sentiment through the
Asian session, even as Sino-U.S. relations took a turn for the
worst.
An industry gauge released overnight indicated U.S.
manufacturing activity expanded in July at the fastest pace in
more than a year, although hiring remained subdued. After a rally on Monday, European shares opened higher but
then fell, with the pan-European STOXX 600 down 0.6% .STOXX
and London's FTSE 100 down 0.7% .FTSE .
Disappointing earnings reports from the world's largest
spirits maker, Diageo Plc DGE.L , and German drugs and
pesticides group Bayer BAYGn.DE took the shine off
growth-linked cyclical stocks. Shares in BP jumped after it cut its dividend and posted a
record loss that was in line with expectations. The MSCI world equity index .MIWD00000PUS , which tracks
shares in 49 countries, was up 0.4% after reaching a five-month
high just after 0700 GMT. MSCI's main European Index .MSER was
flat on the day.
U.S.-China tensions worsened as President Donald Trump said
that he will ban Chinese app TikTok in the U.S. unless a tech
company such as Microsoft buys it. The move provoked an outcry on Chinese social media and
criticism from a prominent Chinese investor in TikTok's owner,
ByteDance. "This kind of rhetoric lines up with our view that
U.S.-China frictions may increase into the U.S. elections,
injecting volatility into related assets like China tech ADRs
(American Depository Receipts) while also supporting insurance
assets like gold," wrote UBS Global Wealth Management's chief
investment officer, Mark Haefele.
The rebound in the dollar faltered, with investors still
waiting for Washington to make progress in talks over the next
round of fiscal stimulus.
A $600-per-week enhanced unemployment benefit, which
provided a lifeline for the tens of millions of Americans who
lost their jobs due to the pandemic, expired on Friday.
Lawmakers said they had made progress in the talks, and U.S.
House Speaker Nancy Pelosi will meet again with Treasury
Secretary Steven Mnuchin and White House Chief of Staff Mark
Meadows on Tuesday, raising hopes for a breakthrough.
The dollar index was down 0.2% on the day at 93.387 =USD .
The euro rose 0.2% against the dollar, to $1.17885 EUR=EBS .
Ten-year German bond yields edged down to -0.5249, still
above the two-month lows reached at the end of last week
DE10YT=RR .
Spot gold held close to all-time highs, at $1,974.77 per
ounce, amid mounting COVID-19 cases and a warning from the World
Health Organization that the road to normality would be long.
Oil prices slipped on fears that a new wave of COVID-19
infections could curtail a pick-up in fuel demand, just as major
producers ramp up output. U.S. West Texas Intermediate (WTI) crude futures CLc1
eased 21 cents, or 0.5% to $40.79 a barrel at 0800 GMT. Brent
crude LCOc1 futures fell 25 cents, or 0.6% to $43.90 a barrel.
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