Global Markets: Stocks wobble on COVID-19, US election uncertainty; dollar slips

By Lewis Krauskopf NEW YORK (Reuters) - A gauge of world stock markets edged lower and the U.S. dollar fell on Tuesday as investors grappled with a surge in coronavirus cases and uncertainty over the impending U.S

Reuters October 28, 2020 00:06:36 IST
Global Markets: Stocks wobble on COVID-19, US election uncertainty; dollar slips

COVID-19 , US election uncertainty; dollar slips" src="https://images.firstpost.com/wp-content/uploads/reuters/10-2020/28/2020-10-27T015545Z_1_LYNXMPEG9Q03B_RTROPTP_2_JAPAN-STOCKS-TSE.jpg" alt="Global Markets Stocks wobble on COVID19 US election uncertainty dollar slips" width="300" height="225" />

By Lewis Krauskopf

NEW YORK (Reuters) - A gauge of world stock markets edged lower and the U.S. dollar fell on Tuesday as investors grappled with a surge in coronavirus cases and uncertainty over the impending U.S. election.

MSCI's gauge of stocks across the globe shed 0.14%, as the pan-European STOXX 600 index lost 0.95%. Wall Street's main indexes were mixed in afternoon trading a day after the S&P 500 posted its biggest drop in a month, with the S&P 500 and the Dow industrials in negative territory but the tech-heavy Nasdaq gaining.

“The factors that helped drive the selloff yesterday - COVID trends and the election uncertainty - are likely going 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 move past the election and see what the impact of these COVID numbers rising are.”

The United States, Russia, France and other countries have registered record numbers of infections in recent days, and European governments moved to set new curbs in motion to try to rein in a fast-growing surge of cases.

Ahead of the Nov. 3 U.S. presidential election, former Vice President Joe Biden leads President Donald Trump in national opinion polls. But the race is close in key battleground states that could decide the outcome, and investors had pointed to a tightening of the election as a factor in Monday's volatility.

On Wall Street, the Dow Jones Industrial Average fell 143.36 points, or 0.52%, to 27,542.02 the S&P 500 lost 3.04 points, or 0.09%, to 3,397.93 while the Nasdaq Composite added 67.26 points, or 0.59%, to 11,426.20.

Investors also focused on a busy week of corporate earnings. Caterpillar shares fell 3.7% and 3M dropped 1.8% after the two industrial companies' respective earnings reports.

In foreign exchange markets, the dollar index, which measures the greenback against a basket of currencies, fell 0.272%, with the euro up 0.17% to $1.1828.

U.S. Treasury yields fell and the yield curve was flatter as hopes faded for a stimulus deal in Washington to arrive soon. Euro zone bond yields also dipped.

"The market wants some sort of stimulus. It's not getting it yet," said Eric Jussaume, director of fixed income for Cambridge Trust.

Benchmark U.S. 10-year notes last rose 7/32 in price to yield 0.7793%, from 0.803% late on Monday.

Crude rebounded as companies shut down some U.S. Gulf of Mexico oil production ahead of an approaching storm, although surging coronavirus infections and rising Libyan supply limited gains.

U.S. crude last rose 2.28% to $39.44 per barrel and Brent was at $41.15, up 1.71% on the day.

(Additional reporting by Ross Kerber in Boston, Elizabeth Howcroft in London; Editing by Bernadette Baum)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Global Markets: Stocks ascend to record on economic recovery, vaccine outlook
Business

Global Markets: Stocks ascend to record on economic recovery, vaccine outlook

By Chuck Mikolajczak NEW YORK (Reuters) - A gauge of global stocks hit a record and oil prices jumped on Monday as the newest positive data for a potential COVID-19 vaccine and signs of economic recovery in Asia boosted sentiment. U.S. stocks advanced, with the Dow Industrials setting a record as it neared the 30,000 mark for the first time, after pharma company Moderna said its prospective vaccine was 94.5% effective in preventing the illness, which has crushed economies across the globe

Airbnb IPO filing shows third-quarter earnings beating virus with cost cuts, new focus
Business

Airbnb IPO filing shows third-quarter earnings beating virus with cost cuts, new focus

By Anirban Sen and Joshua Franklin (Reuters) - Airbnb Inc's initial public offering (IPO) registration showed on Monday that the home rental startup turned a profit in the third quarter despite the COVID-19 pandemic, as it gears up for one of the most anticipated stock market debuts in recent years. The filing, published ahead of Airbnb's anticipated stock market debut in December, showed a dramatic recovery in its fortunes, after the coronavirus outbreak dragged down its core home rental business during the first half of the year. The slump forced it to lay off 25% of its workforce in May, suspend marketing activities for the year and seek $2 billion (£1.5 billion) emergency funding from investors, including Silver Lake and Sixth Street Partners, at a valuation of $18 billion

Biden says U.S., allies need to set global trade rules to counter China's influence
Business

Biden says U.S., allies need to set global trade rules to counter China's influence

By David Lawder WASHINGTON (Reuters) - U.S. President-elect Joe Biden said on Monday the United States needed to negotiate with allies to set global trading rules to counter China's growing influence but declined to say whether he would join a new China-backed Asian trade pact signed on Sunday.