Stocks dip, dollar up as data warns of sputtering recovery
By Rodrigo Campos NEW YORK (Reuters) - Shares dipped and the dollar ticked up near two-month highs on Wednesday as data reaffirmed lingering concerns that new restrictions to counter coronavirus infections will hurt the economic recovery. The speed of recovery in U.S
By Rodrigo Campos
NEW YORK (Reuters) - Shares dipped and the dollar ticked up near two-month highs on Wednesday as data reaffirmed lingering concerns that new restrictions to counter coronavirus infections will hurt the economic recovery.
The speed of recovery in U.S. business activity slowed down in September, with gains at factories more than offset by a retreat at services industries, suggesting a loss of momentum in the economy as the third quarter draws to a close and the COVID-19 pandemic lingers.
September surveys of private sector activity also painted a gloomy picture in Europe, with rising COVID-19 infections leading to a downturn in services industries.
U.S. stocks had opened higher, tracking Europe, but turned negative after the morning data.
The Dow Jones Industrial Average <.DJI> fell 5.87 points, or 0.02%, to 27,282.31, the S&P 500 <.SPX> lost 11.41 points, or 0.34%, to 3,304.16 and the Nasdaq Composite <.IXIC> dropped 67.08 points, or 0.61%, to 10,896.56.
The pan-European STOXX 600 index <.STOXX> rose 0.83% and MSCI's gauge of stocks across the globe <.MIWD00000PUS> shed 0.16%.
Emerging market stocks lost 0.34%. MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> closed 0.1% higher, while Japan's Nikkei <.N225> lost 0.06%.
In foreign exchange markets, the standout mover was the dollar, which touched its highest level since late July against a basket of six major currencies <=USD>.
"At present, the market is once again dominated by concerns about a second wave of infections, above all in Europe, meaning that the dollar is in demand again," Commerzbank analysts wrote in a morning note.
The dollar index <=USD> rose 0.322%, with the euro
The Japanese yen weakened 0.40% versus the greenback at 105.31 per dollar, while Sterling
Oil edged up supported by a report that U.S. fuel inventories fell, although rising crude supply and concern of stalling demand capped gains.
"Oil prices are still faring comparatively well today given all the headwinds they are facing – a firm U.S. dollar, concerns about demand, rising supply," said Carsten Fritsch of Commerzbank.
Benchmark 10-year notes
(Reporting by Rodrigo Campos; additional reporting by Julien Ponthus and Alex Lawler in London and Lucia Mutikani in Washington; Editing by Nick Zieminski)
This story has not been edited by Firstpost staff and is generated by auto-feed.
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