* Dollar index almost higher since November 2020
* European stocks open lower
* Ten-year German bond yields are lowest since mid-February
* The threat of U.S. car withdrawal shakes Chinese technology
* Oil is falling, but the Suez Canal remains a concern
* Chart: World currency exchange rates tmsnrt.rs/2RBWI5E
LONDON, March 25 (Reuters) – Global equities traded near a two-week low on Thursday as the dollar traded near a four-month high against the euro as investors worried the European response to COVID-19 lagged behind that of the United States. .
European markets were under pressure, with a STOXX index of 600 European shares up 0.8% and a British FTSE index up 1.1%. The mood was not helped by the data that showed the largest increase since January 9 in the newly confirmed cases of coronavirus in Germany. Meanwhile, the number of people with COVID-19 in French intensive care set a maximum for 2021.
Extended blockades and concerns about the pace of vaccinations across Europe slowed the euro, which fell 0.1% against the dollar, to $ 1,1807.
The dollar index had peaked since November 2020 overnight, at 92.697, surpassing its 200-day moving average.
“The dollar is absolutely critical,” said James Athey, chief investment officer of Aberdeen Standard Investments.
“While the‘ reflation trade ’has been driven largely by the U.S. fiscal stimulus and therefore by growth and inflation expectations, it has also been driven by rising consumer prices. tickets from higher commodity prices.
“If the dollar starts to rise, that becomes a problem. It means commodity weakness and emerging market weakness and is beginning to provide a disinflationary compensatory narrative. “
The value of MSCI’s global shares was 0.2% lower, down for a second day and at its lowest level in more than two weeks.
Its broader Asia-Pacific stock index outside of Japan fell 0.2%, bringing it close to ending all the gains it has made this year.
Weighing sentiment led to a disagreement over Chinese technology stocks amid concerns that it will withdraw from US stock markets and concerns about the shortage of semiconductors.
In Hong Kong, companies listed in the United States caused declines. JD.com lost 3.57% and Alibaba fell 3.91%.
China’s blue chip CSI300 index fell 0.05% to its lowest close since Dec. 11, weighed down by concerns about tightening policies and rising tensions between China and Western countries for allegations of human rights abuses in Xinjiang.
US futures on equities pointed to a more steady start on Wall Street after Wednesday’s fall, with an E-minis 0.4% firmer.
The U.S. securities regulator is introducing measures that would expel foreign companies from U.S. stock exchanges if they do not comply with U.S. audit standards and require them to disclose any government affiliations, measures that are expected to affect Chinese companies.
In addition to concerns about the widening economic blockades in Europe, disruptions in the distribution of COVID-19 vaccines and possible tax hikes in the United States also dampened investor sentiment.
“Rising interest rates, the uncertainty of fiscal policy and the concern about inflation remain the first to think of investors. Still, none of these issues speak of growing appetite for risk, ”said Peter Kenny of Kenny’s Commentary LLC and Strategic Board Solutions LLC in Denver.
U.S. crude fell 2.9% to $ 59.41 a barrel, and Brent fell 2.7% to $ 62.67, returning some gains the day before. that one of the largest container ships in the world ran aground in the Suez Canal, blocking the vital lane.
The 10-year US Treasury benchmark yields fell to 1.6015%. Investors have focused on 10-year Treasury profitability, thinking about whether there is room for long-term interest rates to run, said David Kelly, chief global strategist at JPMorgan Asset Management.
“We know the economy is poised to really start accelerating in the second quarter,” Kelly said. “But we haven’t seen that acceleration yet, so that’s what we’re hoping for.”
Germany’s ten-year bond yield fell two basis points to 0.376%, the lowest level since mid-February.
Additional reports by Stanley White in Tokyo and Katanga Johnson in Washington; edited by Catherine Evans, Larry King