Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Stocks slide on surging COVID-19 cases, stimulus doubts; dollar rises

10/26/2020 | 03:34pm EST
A man wearing protective face mask walks in front of a stock quotation board outside a brokerage in Tokyo

NEW YORK (Reuters) - Stocks across the globe posted their biggest decline in a month on Monday as surging coronavirus cases in Europe and the United States clouded the world economic outlook, giving the U.S. dollar a safe-haven boost.

The United States, Russia and France set new daily records for coronavirus infections as a resurgence of the virus swelled across parts of the Northern Hemisphere, forcing some countries to impose new curbs.

The spreading pandemic, along with lack of progress on a U.S. stimulus package and caution ahead of the Nov. 3 U.S. presidential election, dragged down the MSCI world equity index.

"It's almost entirely COVID-related. We thought all along that the most important factor for the market, good or bad, is COVID and it's bad (today) because cases are rising," said Christopher Grisanti, chief equity strategist at Mai Capital Management in Cleveland.

"The administration has come out and said it does not want to slow down the economy, yet as cases rise they may not have a choice. So the administration is in a difficult position."

The Dow Jones Industrial Average fell 650.19 points, or 2.29%, to 27,685.38, the S&P 500 lost 64.42 points, or 1.86%, to 3,400.97 and the Nasdaq Composite dropped 189.35 points, or 1.64%, to 11,358.94.

The pan-European STOXX 600 index lost 1.81% and MSCI's gauge of stocks across the globe shed 1.52%.

MSCI's gauge of stocks globally hit a record high in September and brushed against it earlier this month.

Emerging market stocks lost 0.51%. Japan's Nikkei futures fell 0.57%.

Sentiment was also hit by a survey showing German business morale fell in October for the first time in six months.

As markets increasingly price in the likelihood of a Democratic president and Congress which would likely result in a rise in government spending and borrowing, U.S. 10-year Treasury yields hit their highest since early June last week at 0.872%.

"We have raised the probability of a Democratic sweep, already our base case, from 40% to just over 50% and have increased our expectation of (Democratic presidential candidate) Joe Biden to win from 65% to 75%," NatWest Markets analysts said. "We see steeper U.S. yield curves and a weaker USD as likely to prevail in our base case."

Benchmark 10-year notes last rose 11/32 in price to yield 0.8044%, from 0.841% late on Friday.

BlackRock Inc, the world's largest asset manager, on Monday downgraded U.S. Treasuries and upgraded their inflation-linked peers ahead of the U.S. election.

Despite encouraging news about a COVID-19 vaccine out of Oxford, surging coronavirus cases sent investors to the safety of the dollar.

"Skittish investors are scooping up the greenback as virus cases accelerate around the world, stimulus talks in Washington remain in limbo, and trepidation is on the rise ahead of America's presidential election," said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington.

The dollar index rose 0.286%, with the euro down 0.45% to $1.1806.

The Japanese yen weakened 0.09% versus the greenback at 104.84 per dollar, while sterling was last trading at $1.3021, down 0.15% on the day.

In commodity markets, spot gold added 0.1% to $1,902.02 an ounce. Silver fell 1.16% to $24.29.

Oil prices extended last week's losses. OPEC's secretary general said an oil market recovery may take longer than hoped as coronavirus infections rise worldwide, and OPEC and its allies would "stay the course" in balancing the market.

U.S. crude fell 3.21% to $38.57 per barrel and Brent was at $40.46, down 3.14% on the day.

(Reporting by Rodrigo Campos; additional reporting by Lewis Krauskopf and Gertrude Chavez-Dreyfuss in New York, Ross Gerber in Boston, Medha Singh in Bengaluru, and Tom Arnold in London; Editing by Mark Heinrich and Sandra Maler)

By Rodrigo Campos


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
BLACKROCK, INC. 0.62% 703.61 Delayed Quote.39.97%
CURVES HOLDINGS CO., LTD. -0.82% 729 End-of-day quote.0.00%
DJ INDUSTRIAL -0.58% 29872.47 Delayed Quote.4.67%
EURO / US DOLLAR (EUR/USD) 0.11% 1.19239 Delayed Quote.6.23%
LONDON BRENT OIL 0.92% 48.16 Delayed Quote.-26.00%
MSCI WORLD INDEX (STRD, UHD) 0.02% 2590.149 Real-time Quote.9.80%
NASDAQ 100 0.60% 12152.215271 Delayed Quote.39.15%
NASDAQ COMP. 0.48% 12094.402197 Delayed Quote.34.79%
NIKKEI 225 0.40% 26644.71 Real-time Quote.12.18%
S&P 500 -0.16% 3629.65 Delayed Quote.12.35%
SILVER 0.11% 23.203 Delayed Quote.31.05%
STOXX EUROPE 600 0.08% 391.83 Delayed Quote.-5.82%
US DOLLAR / RUSSIAN ROUBLE (USD/RUB) 0.87% 76.231 Delayed Quote.21.88%
WESTERN UNION COMPANY 0.67% 22.58 Delayed Quote.-15.68%
WTI 0.82% 45.355 Delayed Quote.-25.37%
Latest news "Economy & Forex"
07:56aMexico Registers Record Trade Surplus in October
DJ
07:56aEXPERT VIEWS : India's economy shrinks 7.5% in July-Sept quarter
RE
07:53aPolish PM confirms readiness to veto EU budget
RE
07:52aDollar edges down, set for weekly loss; kiwi having best month since 2013
RE
07:51aDollar edges down, set for weekly loss; kiwi having best month since 2013
RE
07:51aPolish PM confirms readiness to veto EU budget
RE
07:49aIndian economy contracts for second quarter in a row, recovery seen next year
RE
07:47aIndian economy contracts for second quarter in a row, recovery seen next year
RE
07:46aPHILIP GREEN : Philip Green's Arcadia working on contingency options after COVID-19 hit
RE
07:45aCommerzbank reshuffle continues with new head of corporate business
RE
Latest news "Economy & Forex"