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GLOBAL MARKETS-Stocks, oil fall further on virus, U.S. election angst

Published 30/10/2020, 17:04
© Reuters.
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* USD index little changed, set for sharp weekly gain
* Crude prices set for double-digit weekly percentage loss
* Graphic: Stocks, oil, COVID-19: https://tmsnrt.rs/35Q1ncm

(Updates throughout, changes dateline; previous LONDON)
By Rodrigo Campos
NEW YORK, Oct 30 (Reuters) - Stocks across the globe resumed
their slide on Friday and oil headed for a double-digit weekly
fall on continued concern over the economic impact of a rising
global coronavirus infections and ahead of Tuesday's U.S.
presidential election.
This week has seen global coronavirus cases rise by over
500,000 for the first time, with France and Germany preparing
fresh lockdowns. Underwhelming outlooks and results from some of Wall
Street's largest companies further soured the mood and dragged
U.S. stocks lower. The S&P 500 was on track for its largest
weekly drop since March and its second-consecutive monthly
decline.
"There is a big sell-off in those big tech names because
they didn't live up to the hype and people are really worried
about next week's election," said Kim Forrest, chief investment
officer at Bokeh Capital Partners in Pittsburgh.
Ahead of the last campaign weekend, Republican President
Donald Trump trails Democratic challenger Joe Biden in national
opinion polls, as he has done for months, partly because of
widespread disapproval of Trump's handling of the coronavirus.
Opinion polls in the most competitive states that will decide
the election have shown a closer race, though still favoring
Biden. The Dow Jones Industrial Average .DJI fell 331.45 points,
or 1.24%, to 26,327.66, the S&P 500 .SPX lost 54.12 points, or
1.63%, to 3,255.99 and the Nasdaq Composite .IXIC dropped
303.96 points, or 2.72%, to 10,881.63.
The S&P was on track to fall over 6% this week and more than
3% in October.
The pan-European STOXX 600 index .STOXX % and MSCI's gauge
of stocks across the globe .MIWD00000PUS shed 1.47%. Emerging
market stocks lost 1.64%.
Oil prices fell for the fourth time this week, weighed by
demand concerns as COVID-19 cases swelled globally and fresh
lockdowns were to start in Europe's two largest economies.
U.S. crude CLc1 recently fell 2.49% to $35.27 per barrel
and Brent LCOc1 was at $37.39, down 0.69% on the day. Both
were on track to fall over 10% this week alone.
The oil weakness led to a broad sell-off of commodity-linked
currencies, including the Russian rouble RUB= , Norwegian crown
NOK= and Canadian dollar CAD= . The dollar index, measuring the greenback against a basket
of peers, was little changed on the day and was on track for
only its second weekly gain of over 1% in more than six months
as its safe-haven appeal shone this week.
The dollar index =USD rose 0.113%, with the euro EUR=
down 0.16% to $1.1655.
Societe Generale FX analyst Kit Juckes said that given the
recent imposition of a fresh lockdown in France, the positive
growth data there - an 18.2% quarter-on-quarter jump - was not
enough to outweigh virus concerns.
The Japanese yen strengthened 0.01% versus the greenback at
104.58 per dollar, while the British pound GBP= was last
trading at $1.2937, up 0.09% on the day.
A risk-on revival after the U.S. election could see the
dollar resume its slide from the March highs.
"Our month-end models show a backdrop that would favor a
slightly weaker dollar," said Mazen Issa, senior currency
strategist at TD Securities in New York.

Treasury yields were little changed, with benchmark 10-year
notes US10YT=RR last down 6/32 in price to yield 0.8552%, from
0.836% late on Thursday.
Spot gold XAU= added 0.7% to $1,879.66 an ounce. Silver
XAG= gained 1.18% to $23.55.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
Stocks and oil vs. coronavirus cases https://tmsnrt.rs/35Q1ncm
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

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