GLOBAL MARKETS-World shares stem losses, oil gains as fresh lockdown fears fade

* European stocks snap four-day losing streak
* Oil futures turn positive
* Gold on track for biggest weekly gain since April
* Graphic: World stocks market cap loss https://tmsnrt.rs/30zdOIL

By Tom Arnold and Stanley White
LONDON/TOKYO, June 12 (Reuters) - Global shares pared losses
on Friday while oil prices reversed course and edged higher as
fears of fresh lockdowns of economies to combat the coronavirus
faded.
In Europe, the STOXX 600 Index .STOXX snapped a four-day
losing streak to add 1.0%. Frankfurt's DAX .GDAXI , Paris's
CAC40 .FCHI and London's FTSE .FTSE were all in positive
territory, the latter shrugging off data showing Britain's
economy shrank the most on record in April. Recovering some losses sustained in earlier trading, MSCI's
49-country index of world stocks .MIWD00000PUS was 0.2% down,
extending a four-day losing streak. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS was 0.9%
lower.
Oil prices clawed their way back from earlier losses to turn
positive, but were still on track for their first weekly fall in
seven as new U.S. coronavirus cases spiked.
The three major U.S. stock indexes posted their worst day on
Thursday since mid-March, when markets were sent into freefall
by the abrupt economic lockdowns put in place to contain the
pandemic.
"We do not expect any second lockdown, significant lockdown
anywhere in the world. In that respect we felt risk assets were
right to find the bottom in March," said Elliot Hentov, head of
Policy and Research at State Street.
"The lockdown for us was always a one-and-done."
That sentiment was echoed in a note by UBS Global Wealth
Management, which pointed out that in Europe mobility had picked
up and the number of new infections had remained subdued, while
in the U.S. new restrictive measures were unlikely. Pointing to a rebound in Wall Street, U.S. stock futures,
the S&P 500 e-minis ESc1 , rose 2.0%.
A jump in COVID-19 cases in some parts of the United States
has raised concern among experts who say authorities have moved
too soon to loosen restrictions put in place to limit contagion.
Cases in New Mexico, Utah and Arizona rose by 40% over the
week ended Sunday, a Reuters tally showed. Florida and Arkansas
are other hot spots. The U.S. Federal Reserve released a gloomy economic outlook
at the end of its two-day monetary policy meeting on Wednesday.
Chairman Jerome Powell warned of a "long road" to recovery.
Economic data appeared to back up the Fed's projections,
with jobless claims still more than double their peak during the
2007-09 recession and continuing claims at an astoundingly high
20.9 million. U.S. crude CLc1 added 0.3% to $36.45 per barrel, while
Brent crude LCOc1 added 0.7% to $38.69 per barrel. O/R
In currencies, sterling recovered from a disappointing week
and was up 0.2% against the U.S. dollar at $1.2631 GBP=D3 as
investors returned to risk assets. The euro rose 0.1% to $1.1311 EUR=EBS , staying close to
the three-month high it reached on Wednesday. L8N2DP19G
"Sentiment towards the dollar has turned negative as
investors consider that the U.S. continues to suffer at the
hands of the virus, the yield advantage of the dollar has
disappeared and the chances of Trump winning (re-election) have
fallen significantly," said James Athey, investment director,
Aberdeen Standard Investments.
"When the dollar falls this tends to lead to risk-on at the
moment as recent dollar strength had been driven by flight to
quality."
The Norwegian crown advanced the most, rising by 0.8% to
9.5480 against the U.S. currency NOK=D3 .
In the onshore market, the yuan CNY=CFXS fell 0.3%, headed
for its biggest daily decline since May 27.
The 10-year U.S. Treasury yield US10YT=RR rose to 0.7067%
on Friday. US/
Bond prices were buoyed after they rallied following the
Fed's commitment on Wednesday to years of extraordinary support
to counter the economic fallout from the pandemic.
Spot gold XAU= gained 0.3% to $1,732.91 per ounce, and has
jumped about 2.8% so far this week, which could be its biggest
gain since the week of April 10. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Asia stock markets https://tmsnrt.rs/2zpUAr4
World stocks market cap loss https://tmsnrt.rs/30zdOIL
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