Stocks, U.S. Futures Slide as Virus Cases Surge

European stocks and U.S. futures slumped as a resurgence in virus cases in Tokyo, Germany and the American South sharpened concern about the pace of economic recovery.

The Stoxx Europe 600 Index fell the most in a week with losses across all major industries. Oil and copper retreated, while the dollar steadied. Austria is selling another 100-year bond, locking in historically low borrowing costs from investors who have few alternatives for debt yielding more than 0.5%.

Sentiment in markets is turning more negative on concern that the spreading virus could force policy makers to slow or reverse the pace of business re-openings. Tokyo reported 55 new infections, its highest daily tally since May 5, while Germany saw 712 new cases. The European Union is considering whether to keep a ban on Americans entering the bloc when external borders reopen.

The International Monetary Fund is also due to release an updated outlook today that will probably give an even bleaker view on how economies are coping with the coronavirus outbreak.

The IMF will release new 2020 growth projections on Wednesday.U.S. jobless claims, durable goods and GDP data are due Thursday.A rebalance of Russell indexes is due on Friday.

The Stoxx Europe 600 Index declined 1.5% as of 9:24 a.m. London time.Futures on the S&P 500 Index dipped 0.8%.Nasdaq 100 Index futures decreased 0.5%.The MSCI Emerging Market Index advanced 0.1%.

The Bloomberg Dollar Spot Index climbed 0.1%.The euro dipped 0.1% to $1.1293.The British pound declined 0.4% to $1.2475.The Japanese yen was little changed at 106.53 per dollar.New Zealand’s dollar declined 0.8% to $0.6436.

Brent crude decreased 0.9% to $42.23 a barrel.Gold strengthened 0.2% to $1,771.89 an ounce.Iron ore advanced 1.8% to $101.19 per metric ton.

Stocks, U.S. Futures Slide as Virus Cases Surge, Bloomberg, Jun 24