GLOBAL MARKETS-Stocks slide on 'fragile' mood; oil surges after steep loss

(New throughout, updates prices, market activity and comments
through close of U.S. trading)
By David Randall
NEW YORK, March 24 (Reuters) - Global equities dipped and
the dollar hovered near four-month highs on Wednesday as
concerns about extended economic lockdowns in Europe and the
potential for higher taxes in the United States weighed on
investor sentiment.
European shares closed near two-week lows, while oil prices
surged after steep losses on Tuesday after one of the world's
largest container ships ran aground in the Suez Canal.
Authorities were still trying to clear the ship from the vital
shipping lane on Wednesday afternoon.
"The mood is fairly fragile as all the optimism that
characterized the push higher over the past two or three weeks
in shares is starting to bleed away on talk of a European third
wave and extensions of pandemic lockdowns in Germany and
France," said Michael Hewson, chief market analyst at CMC
Markets.
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
0.94% following steep declines in Asia and modest losses in
Europe.
On Wall Street, the Dow Jones Industrial Average .DJI fell
2.37 points, or 0.01%, to 32,420.78, the S&P 500 .SPX lost
21.37 points, or 0.55%, to 3,889.15 and the Nasdaq Composite
.IXIC dropped 265.81 points, or 2.01%, to 12,961.89.
The Ifo Institute said Germany's extended lockdown is
delaying a recovery. It cut its 2021 growth forecast for
Europe's biggest economy to 3.7% from 4.2% previously.
The IHS Markit euro zone flash composite purchasing
management index rose to 52.5 in March from 48.8 in February in
a surprise return to growth, as factories ramped up production
at the fastest pace in over 23 years.
But April numbers could be hit by surging COVID-19
infections across Europe. Benchmark 10-year notes US10YT=RR last rose 8/32 in price
to yield 1.6102%, from 1.638% late on Tuesday.
U.S. Treasury Secretary Janet Yellen said on Tuesday the
American economy remains in crisis from the pandemic as she
defended developing plans for future tax increases to pay for
new public investments.
Federal Reserve Chair Jerome Powell told U.S. lawmakers that
a coming round of post-pandemic price increases will not fuel a
destructive breakout of inflation. The dollar index =USD rose 0.156%, with the euro EUR=
down 0.27% to $1.1817.
"We are definitely in that mode of a potential further
reduction in risk, which would be supportive for the dollar,"
said Derek Halpenny, head of research for global markets at
MUFG.
"If you were to pick a top concern, then it would be the
COVID situation, with new cases in emerging markets back to
record highs and what's happening in Europe. It does not tally
with global optimism for synchronised global growth," Halpenny
added.
Bitcoin BTC=BTSP rose as much as 5% before paring most of
its as Tesla Inc TSLA.O chief executive Elon Musk said the
company's electric vehicles can now be
bought using bitcoin. U.S. crude CLc1 rose 5.14% to $60.73 per barrel and Brent
LCOc1 was at $64.18, up 5.58% on the day.
Spot gold XAU= added 0.4% to $1,733.76 an ounce.

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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 World Index Market Cap http://tmsnrt.rs/2EmTD6j
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