GLOBAL MARKETS-Equities sink, bonds edge higher on fears of pandemic wave

(New throughout, updates prices, market activity and comments
through close of U.S. trading.)
By David Randall
NEW YORK, June 24 (Reuters) - Rising concerns about a surge
in coronavirus infections sent global equities and oil prices
lower on Wednesday and pushed investors into perceived safe
havens such U.S. Treasuries and gold, which hovered near its
highest level in eight years.
Several U.S. states are posting record infections and the
death toll in Latin America exceeded 100,000, according to a
Reuters tally. The New York Times reported the European Union was prepared
to bar U.S. travelers, putting it in the same category as Brazil
and Russia. Adding to the gloom, European Central Bank chief economist
Philip Lane warned the euro zone economy would need a long time
to recover despite a string of solid data in recent days.
The United States is considering tariffs on $3.1 billion of
exports from Britain, France, Spain and Germany, Bloomberg news
reported, citing a notice published by the office of the U.S.
Trade Representative. "With rising daily COVID-19 cases in the U.S. remaining
front page news, the headlines are proving to be a weighty
burden to bear this morning," Stephen Innes, chief global market
strategist at AxiCorp, said.
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
2.33% following broad declines in Europe and Asia. The MSCI
index has treaded water in recent weeks after jumping more than
40% from March lows on hopes the worst of the pandemic was over.
On Wall Street, the Dow Jones Industrial Average .DJI fell
708.72 points, or 2.71%, to 25,447.38, the S&P 500 .SPX lost
80.82 points, or 2.58%, to 3,050.47 and the Nasdaq Composite
.IXIC dropped 222.20 points, or 2.19%, to 9,909.17..
The International Monetary Fund said it now expects global
output to shrink 4.9% this year, much sharper than the 3.0%
contraction predicted in April. It also reined in its forecast
for a 2021 recovery, calling for global growth at 5.4% compared
to 5.8% in the April forecast. The dollar index =USD rose 0.52%, with the euro EUR=
down 0.34% to $1.1268. The dollar is approximately 5% below
three-year highs touched in March.
"The dollar and risk sentiment are likely to remain broadly
negatively correlated, barring the U.S. displaying clear and
enduring leadership in the global economic recovery, something
hard to square with the grim U.S. news on COVID," said Ray
Attrill, head of FX strategy at NAB.
Spot gold XAU= dropped 0.2% to $1,762.81 after touching
$1,773, its highest since October 2012, in Asian trading.
U.S. gold futures GCc1 gained 0.23% to $1,776.10
an ounce.
Prices of benchmark 10-year U.S. Treasury notes US10YT=RR
edged higher, dropping their yields to 0.6839% from 0.709% late
on Tuesday.
Concerns about high inventories pushed oil prices broadly
lower.
U.S. crude CLc1 fell 5.85% to $38.01 per barrel and Brent
LCOc1 was at $40.11, down 5.91% 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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