* Graphic: Global property performance tmsnrt.rs/2yaDPgn
* Graphic: Global FX levels tmsnrt.rs/2egbfVh
* MSCI ACWI down 0.1%
* Dollar up, yen up, euro down
* US markets on holidays
LONDON, Jan 18 (Reuters) – Global stock markets plummeted Monday as COVID-19 issues rose above hopes of a quick economic recovery, even after data showed China’s economy boomed faster than expected in the fourth quarter of 2020.
European stocks as measured by the STOXX 600 index traded 0.1% lower as of 1134 GMT, following failed union negotiations between French retailer Carrefour and Alimentation Couche-Tard. The continent’s 50 largest stocks were down 0.3%
The German DAX trading index, the French CAC 40 index fell 0.1% and the Italian FTSE MIB index gained 0.1%. The British FTSE 100 index fell 0.3%.
In Asia, Chinese blue chips gained 1.1% after the economy reported a 6.5% growth in the fourth quarter of last year, surpassing a forecast of 6.1%.
Business output for December also outperformed estimates, although retail sales were disappointing.
“The support in domestic demand continues to receive strong support,” said Lauri Hälikkä, SEB’s fixed-income and strategic FX strategy. “Sporadic viral behavior has reduced risks in the short term.”
China has reported more than 100 new COVID-19 cases for the sixth consecutive day, with diseases rising in the northeast disrupting another wave of hundreds of millions of people travel for the Lunar New Year holidays.
New strict controls in the city of Gongzhuling in Jilin province, which has a population of about 1 million people, bring the total number of detainees to more than 29 million.
Hallika said the impact of the latest regional locks and a major test is likely to be limited and short-lived.
The build-up in China was quite different from the United States and Europe, where the spread of coronavirus has hit consumer spending, exemplified by the false U.S. retail sales reported Friday.
Bad U.S. consumer spending data last week helped Finance off some of its recent steep losses and 10-year yields traded at 1.097%, down from last week’s peak of 1.187%.
The calmer sentiment then led to a rise in the safe US dollar, capturing a very short bearish market. Speculators increased the net short dollar position to its highest level since May 2011 in the week ending January 12th.
There are also doubts about the amount of U.S. President Joe Biden’s stimulus package he will make through Congress because of Republican defiance, and the risk of more violence at his first visit Wednesday.
Elsewhere in Asian markets, Japan’s Nikkei slipped 1% and away from a 30-year high.
The MSCI Rural World Index, which monitors stocks across 49 countries, fell 0.1%, for a second session after hitting high levels just last week.
E-Mini futures are for the S&P 500 trading flat, although Wall Street will be closed Monday for holidays.
BUBBLE?
Investors have considered the question of whether markets are internal or whether they will end up for a bubble.
In a monthly letter to delegates last week, Mark Haefele, chief investment officer at UBS Global Wealth Management, said the pre-orders for bubbles are in place.
“Funding costs are at an all-time low, new entrants are being attracted to markets, and the combination of high accrued savings and low potential return on traditional assets is creating both the way and the desire. engage in speculative activity, ”he said, warning that in the coming months, investors need to pay particular attention to“ risks against currency policy reversal, rise in equity valuation, and recovery rate after a pandemic. ”
However, Haefele said that while he sees pockets of profitability, the equity market is not wider in bubbles.
Bitcoin cryptocurrency traded up 1.2%, gaining $ 36,236.
The dollar index went to 90.908, the strongest level since Dec. 21 ,, and away from the recent 2-1 / 2 year pool at 89.206.
The euro had bounced back to $ 1.2070, to its lowest level since Dec. 2, while the dollar gained 0.1% against the yen at 103.78 and well above the recent low of 102.57.
The Canadian dollar fell to $ 1.2792 per dollar after Reuters reported that Biden intended to revoke the license for the Keystone XL oil pipeline.
Biden’s election for Finance Secretary Janet Yellen is expected to refuse to seek a weaker dollar when he testifies Tuesday, the Wall Street Journal reported.
Gold prices rose 0.4% to $ 1,833 an ounce, compared to its January peak of $ 1,959.
Crude oil prices were heading into a profit on concerns that the spread of increasingly tight global lock-in locks would not drive demand, a fall that would also slow the Russian ruble lower 1.1% .
Brent crude futures fell 0.1% at $ 55.60 a barrel, while U.S. crude gained 0.1% to $ 52.43.
Reciting with Ritvik Carvalho; additional statement by Wayne Cole in Sydney; Edited by Angus MacSwan and Hugh Lawson