© Reuters. In the outbreak of coronavirus disease (COVID-19), a man wearing a protective mask stands outside a securities company in Tokyo in front of an electric board showing the Nikkei Stock Average.
London (Reuters)-European and U.S. equity futures fell on Friday, as the Wall Street battle between hedge funds and retail investors and the European conflict over COVID-19 vaccine supply cooled the risk. A safe dollar appetite that seemed to be set for a weekly rise.
Wall Street has been caught in a collaborative attack by small traders organizing online forums such as Reddit, such as GameStop (NYSE :) and AMC Entertainment (NYSE :).
The attack occurs after central bank and government stimulus measures have pushed the stock market to record highs, encouraging retail investors to buy.
“The GameStop story is over, leaving a sour taste in the mouth of policy makers,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
“This story could trigger actions that could force governments and central banks to modify ultra-loose policies that throw liquidity in the middle rather than towards rational goals.”
Brokers blocked borrowing facilities, restricted some of the most popular name transactions overnight, and pushed prices down.
The boss of popular online broker Robin Hood said the curb was deployed to protect brokerage firms and their clients, but some restrictions will be lifted on Friday.
The profit season got off to a good start, dropping 1.5% and 1.8% more than reversing the profits made on Thursday. ()
The UK fell 1.7% and was set to record the worst week since October. European stocks fell 1.5%.
Delays in the production of the COVID-19 vaccine have snowballed among the UK, the European Union and pharmaceutical companies over how best to guide a limited supply.
The European battle to secure the vaccine intensified on Thursday. The EU has warned pharmaceutical companies that they will use all legal means or block exports unless they agree to give injections as promised.
Former UK vaccine director Kate Bingham said Friday that he does not expect the EU to block exports.
A new variant of the new coronavirus also prolonged the blockade and delayed expectations of economic recovery.
“The pandemic continues to cast a dark shadow, and the timing of economic or social recovery remains unclear,” said Richard Hunter, market director for Interactive Investor.
Click here for an interactive chart of vaccine races http://tmsnrt.rs/2EmTD6j
The US dollar rose to a seven-week high against the yen, rose 0.2% against the currency index, and rose 0.6% weekly. The euro fell 0.12% and the pound fell 0.3%.
Germany’s 10-year Treasury yield rose 1 basis point.
Global stocks fell 0.5% towards the three-week lows set in the previous session.
MSCI’s widest non-Japanese Asia Pacific equity index has fallen 1.1%, with a weekly loss of 4.4%. It fell 1.9%, recording the first weekly loss of the year.
Meanwhile, the People’s Bank of China (PBOC) injected 100 billion yuan into the financial system on Friday, a week after the decline in liquidity that caused concerns that the central bank was actually tightening monetary policy.
Still, additional funding had little effect on loosening money markets, interest rates rose for the fifth straight day, and benchmark overnight repo rates surged to their highest levels in almost six years.
Crude oil prices have been stable, staying within the range seen in the last three weeks, stagnation of vaccine deployments and slowing the rise.
Futures rose 0.1% to $ 55.58 a barrel and futures fell 0.27% to $ 52.20 a barrel.
Stocks fall into long-short battle, Reuters European vaccine line
https://www.investing.com/news/economy/asian-equities-set-to-gain-as-shortsqueeze-subsides-dollar-eases-2402761 Stocks fall into long-short battle, Reuters European vaccine line