Stocks wobble on COVID-19, election uncertainty; dollar dips

In this news, we discuss the Stocks wobble on COVID-19, election uncertainty; dollar dips.

NEW YORK (Reuters) – A gauge of global stock markets fell and the US dollar slipped on Tuesday as investors grappled with a spike in coronavirus cases and uncertainty over the impending US election.

The MSCI indicator of stocks across the world .MIWD00000PUS was down 0.22%. The pan-European STOXX 600 .STOXX index lost 0.86%, while major Wall Street indices were mixed at the start of trading, a day after the S&P 500 .SPX posted its biggest drop in a month.

“The factors that contributed to yesterday’s sale – COVID trends and electoral uncertainty – are likely to persist this week,” said Keith Lerner, chief market strategist at Truist / SunTrust Advisory.

“It’s a bit of a low conviction tug of war until we get past the election and see what the impact of the rising COVID numbers is.”

The United States, Russia, France and other countries have seen a record number of infections in recent days, and European governments have decided to put new brakes in place in an attempt to curb a rapid increase in cases.

Ahead of the November 3 presidential election, former Vice President Joe Biden leads President Donald Trump in national opinion polls, but the race is near in key battlefield states, and investors have pointed out a tightening of the course as a factor in Monday’s volatility. .

On Wall Street, the Dow Jones Industrial Average .DJI fell 125.1 points, or 0.45%, to 27,560.28 and the S&P 500 .SPX fell 5.57 points, or 0.16%, to 3395 , 4 while the Nasdaq Composite .IXIC added 33.91 points, or 0.3%, to 11,392.84.

Investors also focused on corporate earnings, with several tech leaders due to report later in the week.

In forex markets, the dollar = USD index, which measures the greenback against a basket of currencies, fell 0.143%, the euro EUR = was up 0.09% to $ 1.1819.

Yields on US Treasuries have fallen and the yield curve has been flatter as hopes faded for a stimulus deal in Washington to arrive soon. Eurozone bond yields also fell.

“The market wants some kind of stimulus. It’s not yet understood, ”said Eric Jussaume, director of fixed income at Cambridge Trust.

US 10-year benchmarks US10YT = RR last rose 7/32 to yield 0.781%, down from 0.803% on Monday night.

Oil prices have risen as oil companies shut down part of US production in the Gulf of Mexico due to a hurricane, although soaring coronavirus infections and rising Libyan supply limited gains .

U.S. CLc1 crude was last up 0.7% to $ 38.83 a barrel and Brent LCOc1 was at $ 40.71, up 0.62% on the day.

Additional reporting by Ross Kerber in Boston, Elizabeth Howcroft in London; Edited by Mark Potter, David Holmes and Susan Fenton

Original © Thomson Reuters

Originally posted 2020-10-27 21:06:10.

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