NEW YORK (Reuters) – Stocks sank around the world on Wednesday as concerns over rising COVID-19 cases in Europe, the United States, and elsewhere, while the US dollar secured increased economic demand.
Crude oil prices fell by about 5% and gold was under increasing dollar pressure.
On Wall Street, the S & P 500’s energy and technology sectors were the hardest hit.
“Whether you call it a continuation of the epidemic or the third wave of new case discovery – it’s the biggest concern,” said Art Hogan, chief market strategist at National Securities in New York.
“Until and unless we go through this epidemic, it is hard for investors to imagine a better economic time.”
The Dow Jones Industrial Average fell 943.24 points or 3.43% to 26,519.95, the S&P 500 119.65 points or 3.53%, to 3,271.03 and the Nasdaq Composite fell 4268 points or 3.73% to 11,004.87.
Germany and France closed their countries at the lowest level as Germany and France ordered to go back into lockdown, as a large second wave of coronovirus infection threatened to overwhelm Europe before the northern winter.
The pan-European STOXX 600 index dropped 2.95%, touching its lowest level since May. The gauge of MSCI shares worldwide is 2.89% for any day since 11 June.
Emerging market shares declined 1.17%. MSCI’s largest index of Asia-Pacific shares outside Japan closed down 0.61%, while Japan’s Nikkei futures were down 1.37%.
Concerns over the rising wave of COVID-19 infections in the currency and bond markets, with the euro depreciating against the dollar.
The dollar index declined 0.44% to 0.344% to $ 1.1744.
The Japanese yen strengthened 0.10% vs. the greenback at 104.33 per dollar, while sterling was trading at $ 1.2978, down 0.50% on the last day.
Adding to the mood of uncertainty was the November 3 US presidential election.
Former Vice President Joe Biden has gained a steady lead in President Donald Trump’s elections. Investors carefully placed bets on their victory and the likely “Blue Wave” outcome, where Democrats control both chambers of Congress.
UBS strategist Vasily Serebrikov said that a Biden administration would be seen as straining trade tensions with traditional allies such as Europe and Canada as well as China, which should improve market sentiment overall and create a safe haven. The form should weigh in dollars.
The price of the benchmark 10-year notes rose by 0.3243% to a final rate of 0.778% late on Tuesday, up by 1/32.
Esculating coronovirus infections were supplied at oil prices out of fear of glut and weak fuel demand. Also weighing on the market, US raw material stocks increased more than the previous week.
“The increase in oil production led to the unexpected build-up of crude oil and, given the additional lockdown we are seeing in Europe, it is bringing bad news on the oil market,” said Andy Lipo, president of advisor Leo Oil Associates .
US crude recently fell 5.59% to $ 37.36 a barrel and Brent was down $% to $ 39.10, down 5.1% on the day.
Gold spot fell 1.6% to $ 1,875.95 an ounce. Silver fell 4.91% to $ 23.35.
Reporting by Rodrigo Campos; Additional reporting by Medha Singh and Shivani Kumesan in Bengaluru and Kate Dugid, Gertrude Chavez-Dreyfus and Scott DiSavino in New York; Editing by Bernadette Baum and Mark Heinrich