Stocks, oil tumble for the week on virus, U.S. election angst


In this news, we discuss the Stocks, oil tumble for the week on virus, U.S. election angst.

NEW YORK (Reuters) – Stocks around the world resumed their fall on Friday, and oil posted a double-digit weekly drop amid lingering concern over the economic impact of rising coronavirus infections around the world and before the US presidential election on Tuesday.

Global coronavirus cases have increased by more than 500,000 for the first time this week, with France and Germany preparing for new lockdowns as record increase in US cases pushes hospitals to the edge of capacity and kills up to 1000 people per day.

Disappointing outlook and results for some of the biggest companies on Wall Street including Apple and Facebook, weakened mood further and lowered US stocks.

“There is a big sale at these big names in tech because they haven’t lived up to the hype and people are really worried about next week’s election,” said Kim Forrest, director. investments at Bokeh Capital Partners in Pittsburgh.

Ahead of the final campaign weekend, Republican President Donald Trump is following Democratic challenger Joe Biden in national opinion polls, as he has been doing for months, in part because of widespread disapproval of Trump’s handling of the coronavirus.

Opinion polls in the more competitive states that will decide the election have shown a tighter race, still in favor of Biden.

The Dow Jones Industrial Average fell 157.51 points, or 0.59%, to 26,501.6, the S&P 500 lost 40.15 points, or 1.21%, to 3269.96 and the Nasdaq Composite fell from 274.00 points, or 2.45%, to 10,911.59.

The S&P was down 5.6% this week and almost 3% in October.

The pan-European STOXX 600 index rose 0.18% on the day, but also lost 5.6% this week. The MSCI indicator of equities across the world fell 1.16% on Friday and lost 5.3% this week. Emerging market equities posted a weekly decline of 3%.

Oil prices fell for the fourth time this week, weighed down by demand worries as COVID-19 cases swelled globally and new lockdowns were due to start in the two largest economies in the world. ‘Europe.

“Many oil-intensive countries around the world are experiencing levels of infection that they did not even have in the first wave,” said Paola Rodriguez-Masiu, senior oil markets analyst at Rystad Energy.

“These infection levels are intended to reduce demand for oil, as traffic will be kept to a minimum during future lockdowns.”

US crude fell 1.38% to $ 35.67 a barrel and Brent was at $ 37.45, down 0.53% on the day. Both have fallen more than 10% this week alone.

The weakness of oil led to a liquidation of some currencies linked to commodities, including the Russian ruble.

The dollar index, measuring the greenback against a basket of peers, rose for the day and posted its second weekly gain of over 1% in more than six months as its safe haven appeal shone.

On the day, the dollar index rose 0.152%, with the euro down 0.25% to $ 1.1645.

The Japanese yen weakened 0.05% against the greenback to 104.68 per dollar, while the British pound last traded at $ 1.2953, up 0.21% on the day.

A resumption of risk after the US election, however, could see the dollar resume its fall from March highs.

“Our end-of-month models show an environment that would favor a slightly weaker dollar,” said Mazen Issa, senior currency strategist at TD Securities in New York.

Longer-term Treasury debt sold off, steepening the steepest yield curve since June, as investors anticipated the deluge of supply that would come from a post-election stimulus package. [US/]

The price of the 30-year bond last fell 28/32 to a yield of 1.6633%, down from 1.625% on Thursday night.

Yields on benchmark T-bills increased as 10-year notes fell 12/32 to a yield of 0.8754%, compared to 0.836%. The 2 year note changed little that day.

Spot gold added 0.6% to $ 1,877.90 an ounce. Silver gained 1.53% to $ 23.63.

Reporting by Rodrigo Campos; additional reporting by Simon Jessop, Marc Jones and Olga Cotaga in London and Stephanie Kelly, Gertrude Chavez-Dreyfuss, Herbert Lash and Kate Duguid in New York; edited by Jonathan Oatis, Ken Ferris and Tom Brown

Original © Thomson Reuters

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