GLOBAL MARKETS-Stocks fall as virus uncertainty lingers; dollar set for weekly loss

* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh

(Updates prices, changes comment, byline, dateline; previous
LONDON)
By Rodrigo Campos
NEW YORK, March 27 (Reuters) - Stocks across the globe fell
on Friday after a historic three-day run-up, with indexes poised
to close the month and quarter with starkly negative
performances.
The volatility of the erratic markets is expected to
continue as the coronavirus pandemic that triggered closures in
economies worldwide remains very much a threat.
The United States surpassed two grim milestones on Thursday
as virus-related deaths soared past 1,000 and it become the
world leader in confirmed cases. The uncertainty over the overall human and economic toll was
reflected in financial markets, with MSCI's gauge of global
stocks on track to post both its largest weekly percentage gain
since 2008 and its largest monthly and quarterly drops since
2008.
The infection rate for the coronavirus is driving much of
the market at a time of great uncertainty, said Yousef Abbasi,
global market strategist at INTL FCStone Financial Inc in New
York.
"My big hang-up here is when the curve does start to
flatten, that doesn't mean we can return to normal human and
economic behavior. If we do return to normal human and economic
behavior, we risk the chance the curve goes parabolic again.
Just from the perspective of how long this potentially can last,
there's still a great deal of uncertainty," he said.
The Dow Jones Industrial Average .DJI fell 827.25 points,
or 3.67%, to 21,724.92, the S&P 500 .SPX lost 87.31 points, or
3.32%, to 2,542.76 and the Nasdaq Composite .IXIC dropped
255.69 points, or 3.28%, to 7,541.85.
The pan-European STOXX 600 index .STOXX lost 3.22% and
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
2.41%.
Emerging market stocks lost 1.07%.
Stock markets have rallied over the past week on trillions
of dollars of enacted and pledged economic stimulus by
policymakers worldwide, from central banks to governments.
Policymakers may need to offer more stimulus as the virus
slams the brakes on economic activity and increases healthcare
spending.
"Next week, markets will likely continue to focus on the
spread of COVID-19 - whether European cases are reaching a peak,
how much of the U.S. will be put in lockdown, and whether China
can avoid a second wave," said Gaétan Peroux, strategist at UBS
Global Wealth Management.
The U.S. House of Representatives is expected to pass a $2.2
trillion stimulus package that will flood the world's largest
economy with money to stem the economic damage caused by the
pandemic. Amid the avalanche of stimulus, the U.S. dollar was little
changed for the day and remained on track for its biggest weekly
decline since May 2009.
The dollar index =USD fell 0.393% on Friday.
The euro EUR= was up 0.24% to $1.1055, the Japanese yen
strengthened 1.57% versus the greenback at 107.92 per dollar,
while Sterling GBP= was last trading at $1.2367, up 1.36% on
the day.
The U.S. currency's fall after two weeks of steep gains
suggests the Federal Reserve's efforts to relieve a crunch in
the dollar funding market are working, some analysts said.
"What we are seeing is abating stress in the money markets.
Action by central banks has been successful so far and a
shortage of dollars has been taken off the table," said Ulrich
Leuchtmann, head of FX and EM research at Commerzbank.
U.S. Treasury yields were headed for a weekly decline,
though the range of trading was far less volatile than in the
previous two sessions.
Benchmark 10-year notes US10YT=RR last rose 22/32 in price
to yield 0.7377%, from 0.808% late on Thursday. The 30-year bond
US30YT=RR last rose 1-26/32 in price to yield 1.3267%, from
1.395%.
Oil prices continued their fall on demand concerns as the
virus slowed economies to a crawl, which outweighed the stimulus
efforts.
U.S. crude CLc1 recently fell 5.44% to $21.37 per barrel
and Brent LCOc1 was recently at $24.54, down 6.83% on the day.
Gold market participants remained concerned about a supply
squeeze after a sharp divergence between prices in London and
New York. The virus has grounded planes used to transport gold
and closed precious metal refineries. Spot gold XAU= dropped 0.3% to $1,623.82 an ounce. The
metal was on track to post its largest weekly advance since
2008.

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World stocks vs. COVID-19 confirmed cases https://reut.rs/2UEjBrT
Global assets in 2020 http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
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