GLOBAL MARKETS-Global stock markets sink as U.S. virus concerns offset Europe rebound hopes

(Updates through midday U.S. trading)
By David Randall
NEW YORK, June 26 (Reuters) - Global equities sank and
perceived safe-haven assets like U.S. Treasuries and gold gained
on Friday as investors weighed hopes that Europe will continue
to rebound from the coronavirus pandemic's economic damage
against concerns over a record surge in new COVID-19 infections
in the United States.
The euro zone is "probably past" the worst of the economic
crisis, European Central Bank President Christine Lagarde said,
while urging authorities to prepare for a possible second wave.
There were at least 39,818 new coronavirus cases across the
United States on Thursday, the largest one-day increase yet. The
governor of Texas temporarily halted the state's reopening as
infections and hospitalizations surged. MSCI's gauge of stocks across the globe .MIWD00000PUS shed
1.25% following broad declines in Europe and slight gains in
Asia. The index is up approximately 40% since its March lows.
"Even though we continue to see some pretty scary virus
numbers coming out of the U.S., it's not really dented sentiment
– not to any sustained degree at least," said Timothy Graf, head
of macro strategy for EMEA at State Street Global Markets.
In midday trading on Wall Street, the Dow Jones Industrial
Average .DJI fell 606.52 points, or 2.36%, to 25,139.08, the
S&P 500 .SPX lost 60.95 points, or 1.98%, to 3,022.81 and the
Nasdaq Composite .IXIC dropped 196.04 points, or 1.96%, to
9,820.97
The euro gained versus the U.S. dollar and was on track for
its biggest weekly rise in three weeks after the ECB reaffirmed
its dovish stance in the minutes of its latest policy meeting.
Concerns about the economic fallout from the surge in U.S.
coronavirus cases helped bolster perceived safe havens. The
dollar index =USD rose 0.07%, while benchmark 10-year U.S.
Treasury notes US10YT=RR last rose 12/32 in price to yield
0.6348%, from 0.674% late on Thursday.
Spot gold XAU= added 0.3% to $1,766.71 an ounce. U.S. gold
futures GCc1 gained 0.15% to $1,764.70 an ounce.
Credit Suisse changed its position on global equities to
"neutral" from "overweight," saying it was taking profits after
the recent rally, but kept its overweight positions in credit
markets.
"The upcoming earnings season, a recent uptick in
coronavirus infection numbers and political developments in the
USA create a challenging backdrop for financial markets going
into the summer," said Michael Strobaek, Credit Suisse's global
chief investment officer.
Record high inventories and fears of declining demand pushed
oil prices lower U.S. crude CLc1 recently fell
1.42% to $38.17 per barrel and Brent LCOc1 was at $40.68, down
0.9% on the day.

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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
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