GLOBAL MARKETS-Stocks slide, dollar gains as data signals sputtering recovery

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

(Updates to U.S. stocks market close)
By Rodrigo Campos
NEW YORK, Sept 23 (Reuters) - Shares fell on Wednesday and
the dollar hit its strongest level in two months as data cast a
pall on the economic outlook, reaffirming concerns that new
restrictions to counter coronavirus infections will hurt the
recovery.
The speed of recovery in U.S. business activity slowed in
September, with gains at factories more than offset by a retreat
at services industries, suggesting a loss of momentum in the
world's largest economy as the COVID-19 pandemic lingers.
The U.S. economy is leveling off at about 80% of activity
before the lockdowns and won't get back to normal until a
vaccine is in place, said Jason Pride, chief investment officer
of private wealth at Glenmede in Philadelphia. "We're at that
phase where it's harder to get that next bit of the recovery,
that next bit of the reopening in place," he said.
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. The Dow Jones Industrial Average .DJI fell 525.05 points,
or 1.92%, to 26,763.13, the S&P 500 .SPX lost 78.65 points, or
2.37%, to 3,236.92, and the Nasdaq Composite .IXIC dropped
330.65 points, or 3.02%, to 10,632.99.
The pan-European STOXX 600 index .STOXX rose 0.55%, and
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
1.47%.
Emerging market stocks lost 0.48%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.04%
higher, while Japan's Nikkei .N225 lost 0.06%.
Adding to the negative market sentiment, President Donald
Trump said he thinks the 2020 presidential election will end up
at the U.S. Supreme Court, saying that is why it is important to
have nine justices. The death last week of Ruth Bader Ginsburg, a liberal
justice, leaves the court at eight members currently, making a
tie vote on rulings possible. The process to replace Ginsburg
will likely clog the Senate - making it even harder to discuss
stimulus legislation that some economists say is needed to
sustain the economic rebound.
In foreign exchange markets the dollar was the standout
mover, touching its highest level since late July against a
basket of six major currencies =USD .
"The market continues to reevaluate its previously very
optimistic stance on the status of global risks out there," said
Ben Randol, senior FX strategist at BofA Securities in New York.
"The news flow has been negative on the virus and negative
on growth. We've had some crummy data and also we've had the Fed
speakers that have been on balance considerably less dovish than
the market seemed to expect, which puts positions at risk,"
Randol said.
The dollar index =USD rose 0.45%, with the euro EUR=
down 0.44% to $1.1655.
The Japanese yen weakened 0.44% versus the greenback at
105.38 per dollar, while sterling GBP= was last trading at
$1.2713, down 0.14% on the day.
Oil settled a tick higher, but prices continued to fall
post-settling, weighed partly by the stronger dollar and a
starker view of the global economic recovery.
U.S. crude CLc1 recently fell 0.75% to $39.50 per barrel
and Brent LCOc1 was at $41.40, down 0.77% on the day. Brent
had gained over 2% at its session high.
Benchmark 10-year notes US10YT=RR last fell 4/32 in price
to yield 0.6773%, from 0.664% late on Tuesday.
In its largest daily decline in five weeks, spot gold XAU=
dropped 2.1% to $1,859.20 an ounce. Silver XAG= fell 6.77% to
$22.76.
Silver is down nearly 15% just this week.

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Emerging markets http://tmsnrt.rs/2ihRugV
Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
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