* European stocks choppy, e-mini S&P 500 futures rise 1%
* Oil falls again, dollar grinds higher
* Volatility gauges elevated as U.S. election looms
* ECB meeting expected to signal support coming
* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh
By Marc Jones
LONDON, Oct 29 (Reuters) - European stocks and commodity
markets fell again on Thursday, after a return to national
lockdowns in some of the region's biggest economies triggered
the worst global selloff in months.
Hopes that the European Central Bank will signal later it
has more support to offer and a bounce in Wall Street futures
had initially stemmed the rout that had wiped nearly 3% off
world stocks on Wednesday, but it didn't last.
The pan-European STOXX 600 .STOXX gave up early gains to
fall 0.3% back into negative territory. Frankfurt's DAX .GDAX
was headed for an 8% weekly drop, which will be the steepest
since the initial COVID panic of March. .EU
Concerns hit commodities, too, with oil falling 4% to its
lowest since June at under $38 a barrel and down nearly 10% for
the week.
"What I think has changed in the last few days is the
significant spikes in the virus in Europe and the U.S.,
especially the U.S." said Nikesh Patel, Kempen Capital
Management's head of investment strategy.
French President Emmanuel Macron and German Chancellor
Angela Merkel have ordered their countries back into coronavirus
lockdowns, while cases are rising in 47 U.S. states with
patients overwhelming hospitals in parts of the country.
Economic data and the ECB meeting were the day's other main
focus. Uncertainty about Tuesday's U.S. election also kept
investors on edge.
The Bank of Japan had made no changes to monetary policy
settings overnight, as expected, though it trimmed its growth
forecasts to reflect sluggish services spending during summer.
Investors expect the ECB to hold off on new measures as
well, but to hint at action in December, which is likely to keep
a lid on the euro. The common currency EUR= fell to a 10-day low against the
dollar and a hundred-day low against the yen EURJPY= . It last
bought $1.17 compared with $1.20 at the start of last month.
/FRX
German government bonds, Europe's principal safe-haven
assets, were still in demand, with their yields, which move
inversely to price, near seven-month lows. Benchmark U.S.
10-year yields US10YT=RR had ticked up overnight to 0.787% but
drifted back down to 0.774% in Europe.
"Given what is happening in France and Germany, I think the
ECB will talk about more stimulus even if they don't deliver it
today," added Kempen's Patel, referring to new COVID-19
restrictions announced this week.
The ECB will release its policy statement at 1245 GMT and
hold a virtual news conference at 1330 GMT. OCTOBER RUMBLES ON
Global stock markets lost nearly $2 trillion on Wednesday,
with volumes on the New York Stock Exchange up almost 40% to
their highest level since September.
Having given up earlier gains, Dow, S&P and Nasdaq futures
markets pointed to another bumpy start, though there were also
results from some of the big COVID winners such as Apple, Amazon
and Facebook (NASDAQ:FB) to look forward to. .N
Overnight, MSCI's broadest index of Asia-Pacific shares
outside Japan .MIAPJ0000PUS fell 0.6%, led by Australia,
.AXJO down 1.6%, and South Korea .KS11 , down 1%.
Japan's Nikkei .N225 fell just 0.3%, while Chinese blue
chips .CSI300 rose 0.5% and the yuan led gains by Asian
currencies against the dollar. FRX/
"Asia is not really partaking in this second or third wave
story because it's got its COVID largely under control," said
Rob Carnell, chief economist in Asia at Dutch bank ING.
Taiwan, which boasts Asia's best-performing currency, marked
its 200th straight day without a local coronavirus transmission
on Thursday.
Wall Street's "fear gauge", the Cboe Volatility Index .VIX
surged on Wednesday to its highest level since June and implied
currency volatility indicates that a wild ride is expected.
In the currency markets, the U.S. dollar edged up and
riskier currencies remained subdued.
The dollar, which hit a nine-day high in the previous
session, was up 0.3% against a basket of six currencies =USD .
The euro was near a three-month low. Japan's yen was steady
after the Bank of Japan's subdued message on the economy.
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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
COVID-19 daily cases https://tmsnrt.rs/37Vr7a3
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