(Fresh throughout, updating prices, market activity and feedback through close US trade)
NEW YORK, March 24 (Reuters) – Global averages fell and the dollar approached four-month highs on Wednesday as there were concerns about expanded economic locks in Europe and the potential for higher U.S. taxes emphasis on investor sentiment.
European shares closed near a two-week low, with oil prices soaring after a sharp loss Tuesday after one of the world’s largest cruise ships landed in the Suez Canal. Authorities were still trying to clear the vessel from the critical shipping line on Wednesday afternoon.
“The feeling is very precarious as all the hopes that have been expressed in the higher pressure over the last two or three weeks in sections are starting to pour out about talk about a European third wave and the expansion of loose locks in Germany and France, ”said Michael Hewson, chief market analyst at CMC Markets.
The global MSCI stock volume is peaking at 0.94% after a sharp decline in Asia and a small loss in Europe.
On Wall Street, the Dow Jones industrial average fell 2.37 points, or 0.01%, to 32,420.78, the S&P 500 lost 21.37 points, or 0.55%, to 3,889.15 and the Nasdaq Composite fell 265.81 points, or 2.01%, to 12,961.89.
The Ifo Institute said Germany’s extended lockout is delaying its recovery. It cut the 2021 growth forecast for Europe’s largest economy to 3.7% from 4.2% previously.
IHS Markit’s euro zone buying control index rose to 52.5 in March from 48.8 in February in a dramatic return to growth, as factories picked up production at the fastest pace in more than 23 years.
But April numbers could be hit by COVID-19 disease outbreaks across Europe.
The last 8/32 benchmark 10-year pound rose in price to yield 1.6102%, from 1.638% late Tuesday.
U.S. Treasury Secretary Janet Yellen said Tuesday that the American economy remains in crisis from the pandemic as it defends plans for future tax increases to pay for new public investments.
Federal Reserve Chairman Jerome Powell has told U.S. lawmakers that a round of post-pandemic fuel price increases will not fuel a devastating breakdown of inflation.
The dollar index rose 0.156%, with the euro down 0.27% to $ 1.1817.
“We are certainly in that mode of further risk reduction, which would support the dollar,” said Derek Halpenny, head of research for global markets at MUFG.
“If you were to raise a major concern, it would be the COVID situation, with new market conditions coming back to record high rates and what is happening in Europe. It does not live up to the global prospects for parallel global growth, ”said Halpenny.
Bitcoin rose as much as 5% before parking most of what Tesla Inc. chief executive Elon Musk said the company’s electric vehicles can now be bought using bitcoin.
US crude rose 5.14% to $ 60.73 per barrel and Brent was at $ 64.18, up 5.58% on the day.
Spot gold added 0.4% to $ 1,733.76 an ounce.
Reporting by David Randall; Edited by Jonathan Oatis, Paul Simao, Sonya Hepinstall and David Gregorio