GLOBAL MARKETS-Stocks slide on surging virus cases, stimulus doubts; dollar rises

* Market recovery may take longer than hoped - OPEC
official
* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn

(Updates prices, changes comment, dateline; previous
LONDON/SYDNEY)
By Rodrigo Campos
NEW YORK, Oct 26 (Reuters) - Shares fell across the globe on
Monday as surging coronavirus cases in Europe and the United
States clouded the world economic outlook, giving the dollar a
safe-haven boost.
The United States, Russia and France set new daily records
for coronavirus infections as a resurgence of the virus swelled
across parts of the Northern Hemisphere, forcing some countries
to impose new curbs. The spreading pandemic, along with no clear progress on a
U.S. stimulus package and caution ahead of the Nov. 3 U.S.
presidential election dragged the MSCI world equity index
.MIWD00000PUS down.
"The market is vulnerable to these 'bad headlines,' because
investors are generally so optimistic right now," said Willie
Delwiche, investment strategist at Baird in Milwaukee.
MSCI's gauge of stocks globally hit a record high in
September and brushed against it earlier this month.
"The market is set up for disappointment at this point,"
Delwiche said.
The Dow Jones Industrial Average .DJI fell 712.83 points,
or 2.52%, to 27,622.74, the S&P 500 .SPX lost 73.34 points, or
2.12%, to 3,392.05 and the Nasdaq Composite .IXIC dropped
189.90 points, or 1.64%, to 11,358.38.
The pan-European STOXX 600 index .STOXX lost 1.72% and
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
1.69%.
Emerging market stocks lost 0.66%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.41%
lower, while Japan's Nikkei .N225 fell 0.09%.
Europe became the second region after Latin America to
surpass 250,000 deaths on Saturday, according to a Reuters
tally, as many European countries reported their highest number
of COVID-19 cases in a single day. Sentiment was also hit by a survey showing German business
morale fell in October for the first time in six months.
Reports of progress in a COVID-19 vaccine being developed by
the University of Oxford and manufactured by drugmaker
AstraZeneca Plc AZN.L helped limit some of the market
sell-off, analysts said. As markets increasingly price in the likelihood of a
Democratic president and Congress which would likely result in a
rise in government spending and borrowing, U.S. 10-year Treasury
yields hit their highest since early June last week at 0.872%
US10YT=RR .
"We have raised the probability of a Democratic sweep,
already our base case, from 40% to just over 50% and have
increased our expectation of (Democratic presidential
candidate)Biden to win from 65% to 75%," NatWest Markets
analysts said. "We see steeper U.S. yield curves and a weaker
USD as likely to prevail in our base case."
Benchmark 10-year notes US10YT=RR last rose 13/32 in price
to yield 0.7977%, from 0.841% late on Friday.
BlackRock Inc BLK , the world's largest asset manager, on
Monday downgraded U.S. Treasuries and upgraded their
inflation-linked peers ahead of the U.S. election. Despite encouraging news about a COVID-19 vaccine out of
Oxford, surging coronavirus cases sent investors to the safety
of the dollar. "Skittish investors are scooping up the greenback as virus
cases accelerate around the world, stimulus talks in Washington
remain in limbo, and trepidation is on the rise ahead of
America's presidential election," said Joe Manimbo, senior
market analyst, at Western Union Business Solutions in
Washington.
The dollar index =USD rose 0.316%, with the euro EUR=
down 0.43% to $1.1808.
The Japanese yen weakened 0.15% versus the greenback at
104.90 per dollar, while sterling GBP= was last trading at
$1.3007, down 0.25% on the day.
In commodity markets, spot gold XAU= added 0.2% to
$1,904.46 an ounce. Silver XAG= fell 1.02% to $24.33.
Oil prices extended last week's losses. OPEC's secretary
general said an oil market recovery may take longer than hoped
as coronavirus inflections rise around the world, and OPEC and
its allies would "stay the course" in balancing the market.
U.S. crude CLc1 was down 3.64% at $38.40 per barrel and
Brent LCOc1 was at $40.37, down 3.35% on the day.

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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
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