# Global shares fall on pandemic fears ahead of jobs report Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-06-30 Category: INVESTING Category URL: https://financedigest.com/category/investing Meta Title: Global shares retreat as markets jittery over COVID-19 and Meta Description: Get the latest update on global shares as markets grow jittery about COVID-19 resurgence and economic recovery prospects. Stay informed with Reuters. URL: https://financedigest.com/global-shares-fall-on-pandemic-fears-ahead-of-jobs-reporthtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2021-06-30t102756z1lynxnpeh5t0ljrtroptp4europe-stocks-1736838255427-compressed.jpg) By Carolyn Cohn and Elizabeth Dilts Marshall NEW YORK (Reuters) – Global shares retreated from recent highs on Wednesday, as Asian markets grew jittery about a resurgence of COVID-19 cases and Western markets awaited Friday’s U.S. jobs report and what it might mean for [monetary policy](https://www.financedigest.com/uks-ftse-100-dips-on-scope-of-tighter-monetary-policy-informa-jumps.html "UK’s FTSE 100 dips on scope of tighter monetary policy; Informa jumps"). Asset markets have been buoyed over the past year by trillions of [dollars of monetary and fiscal stimulus by central banks and governments around the world](https://www.financedigest.com/world-stocks-cling-to-upbeat-mood-dollar-stalls.html "World stocks cling to upbeat mood, dollar stalls") in response to the pandemic. The success of vaccination rollouts in some places has fueled an economic recovery, and [consumer confidence](https://www.financedigest.com/ikea-reports-record-sales-as-price-hikes-offset-weakening-consumer-confidence.html "IKEA reports record sales as price hikes offset weakening consumer confidence") in June surged to 21-year-highs in Europe and 1-1/2-year-highs in the United States. But fears over a sudden [rise in inflation](https://www.financedigest.com/shares-rise-but-concern-mounts-over-inflation-flare-up.html "Shares rise, but concern mounts over inflation flare-up") and the highly contagious Delta variant combined with investors taking gains as the first half of the year ended on Wednesday. The [search for yield is a very powerful](https://www.financedigest.com/analysis-nickel-meltdown-puts-spotlight-on-lmes-search-powers.html "Analysis-Nickel meltdown puts spotlight on LME’s search powers") force. It doesn’t have (a) narrative right now to stop,” said Sebastien Galy, [senior macro strategist at Nordea Asset Management](https://www.financedigest.com/the-senior-management-regime-takes-shape.html "The Senior Management Regime takes shape"). MSCI’s all-country world index, which tracks [shares across 50 countries](https://www.financedigest.com/netflix-cuts-prices-in-some-countries-to-boost-subscriptions-shares-drop.html "Netflix cuts prices in some countries to boost subscriptions, shares drop"), shed 0.28%. It was still [set for a fifth straight month of gains](https://www.financedigest.com/londons-ftse-100-edges-higher-set-for-fourth-weekly-gain.html "London’s FTSE 100 edges higher, set for fourth weekly gain"), and for a rise of more than 11% in the first half. The Dow Jones Industrial Average rose 134.39 points, or 0.39%, the S&P 500 gained 3.06 points, or 0.07%, and the Nasdaq Composite dropped 13.63 points, or 0.09%. \[.N\] The pan-European STOXX 600 index lost 0.77%. The German DAX fell 159.55, or 1.02%, and London’s FTSE 100 fell 50.08, or 0.71%. EYES ON PAYROLLS Data released on Wednesday showed that U.S. private payrolls increased 692,000 [jobs in June](https://www.financedigest.com/u-s-job-growth-picks-up-in-june-unemployment-rate-rises-to-5-9.html "U.S. job growth picks up in June; unemployment rate rises to 5.9%"), more than expected but less than the 886,000 jobs added in May. That figure pushed the S&P 500 to [near record](https://www.financedigest.com/demand-for-hydrocracker-is-forecast-to-record-a-volume-cagr-of-nearly-7-through-2028.html "Demand for Hydrocracker Is Forecast to Record a Volume CAGR of Nearly 7% through 2028") highs on Wednesday. But [markets are still focused on the more comprehensive](https://www.financedigest.com/robotic-rehabilitation-and-assistive-technologies-market-to-witness-comprehensive-growth-by-2019-2027.html "Robotic Rehabilitation and Assistive Technologies Market to Witness Comprehensive Growth by 2019 – 2027") U.S. [nonfarm payrolls](https://www.financedigest.com/dollar-tumbles-as-u-s-nonfarm-payrolls-show-mixed-picture.html "Dollar tumbles as U.S. nonfarm payrolls show mixed picture") figures to come on Friday. Economists polled by Reuters were expecting a [gain of 690,000 jobs](https://www.financedigest.com/stocks-mixed-dollar-gains-after-robust-inflation-jobs-data.html "Stocks mixed, dollar gains after robust inflation, jobs data") for June, up from 559,000 in May. But the variation among the 63 estimates was large, ranging from 400,000 to more than a million. The benchmark 10-year yield rose to yield 1.4426%, from 1.48% The dollar rose 0.357%, headed for its [biggest monthly rise since](https://www.financedigest.com/uk-firms-plan-biggest-pay-rises-since-2012-to-fill-staff-gaps.html "UK firms plan biggest pay rises since 2012 to fill staff gaps") November 2016. The [dollar has gained](https://www.financedigest.com/shares-steady-dollar-gains-ahead-of-u-s-inflation-data.html "Shares steady, dollar gains ahead of U.S. inflation data") about 2.6% against a basket of currencies this month, partly in the wake of the U.S. Federal Reserve’s hawkish tilt. A “very optimistic” [Fed Governor Christopher Waller on Tuesday said it may need to start dialing down its massive asset purchase program as soon as this year to allow the option of raising interest rates](https://www.financedigest.com/shares-fall-with-oil-prices-amid-concerns-about-u-s-fed-rate-hikes.html "Shares fall with oil prices amid concerns about U.S. Fed rate hikes") by late 2022. The euro was down 0.37% to $1.1851, while Britain’s pound was last trading at $1.3807, down 0.20% on the day. The Japanese yen weakened 0.45% [versus the greenback to 111.03 per dollar](https://www.financedigest.com/russian-rouble-nears-4-week-high-versus-dollar.html "Russian rouble nears 4-week high versus dollar"). MSCI’s broadest index of Asia-Pacific [shares outside Japan closed 0.11% lower](https://www.financedigest.com/ford-posts-lower-profit-issues-downbeat-outlook-shares-drop.html "Ford posts lower profit, issues downbeat outlook; shares drop"), while Japan’s Nikkei lost 0.07%. Chinese blue chips added 0.65%. Indonesia, Malaysia, Thailand and [Australia are all battling outbreaks of COVID-19](https://www.financedigest.com/freedom-day-sydney-reopens-as-australia-looks-to-live-with-covid-19.html "‘Freedom Day’: Sydney reopens as Australia looks to live with COVID-19") and tightening restrictions, and Spain and Portugal announced restrictions for unvaccinated British tourists. [Oil prices were heading for monthly and quarterly gains](https://www.financedigest.com/oil-prices-stable-heading-for-weekly-gain.html "Oil prices stable, heading for weekly gain") after some data suggested U.S. crude stockpiles were shrinking. \[O/R\] U.S. crude rose 0.36% to $73.24 per barrel and Brent was at $75.08, up 0.43% on the day. Gold headed for its [largest monthly decline since](https://www.financedigest.com/first-quarter-dash-for-cash-largest-since-early-2020-bofa.html "First quarter ‘dash for cash’ largest since early 2020 -BofA") November 2016. Spot gold added 0.2% to $1,765.16 an ounce. U.S. gold [futures gained](https://www.financedigest.com/dollar-gains-as-wall-street-retreats-on-future-fed-hikes.html "Dollar gains as Wall Street retreats on future Fed hikes") 0.13% to $1,765.10 an ounce. \[GOL/\] (Reporting by Carolyn Cohn in [London and Elizabeth Dilts Marshall in New York; editing by Jonathan Oatis, Kirsten Donovan)](https://www.financedigest.com/new-york-catches-up-with-london-to-head-citys-global-centres-survey.html "New York catches up with London to head City’s global centres survey") --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---