GLOBAL MARKETS-Stocks slide on surging COVID-19 cases, stimulus doubts; dollar rises

* Oil market recovery may take longer than hoped -OPEC
official
* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn

(Updates prices, changes comment)
By Rodrigo Campos
NEW YORK, Oct 26 (Reuters) - Shares fell across the globe on
Monday as surging coronavirus cases in Europe and the United
States clouded the world economic outlook, giving the U.S.
dollar a safe-haven boost.
The United States, Russia and France set new daily records
for coronavirus infections as a resurgence of the virus swelled
across parts of the Northern Hemisphere, forcing some countries
to impose new curbs. The spreading pandemic, along with lack of progress on a
U.S. stimulus package and caution ahead of the Nov. 3 U.S.
presidential election, dragged down the MSCI world equity index
.MIWD00000PUS .
"It's almost entirely COVID-related. We thought all along
that the most important factor for the market, good or bad, is
COVID and it's bad (today) because cases are rising," said
Christopher Grisanti, chief equity strategist at Mai Capital
Management in Cleveland.
"The administration has come out and said it does not want
to slow down the economy, yet as cases rise they may not have a
choice. So the administration is in a difficult position."
The Dow Jones Industrial Average .DJI fell 767.56 points,
or 2.71%, to 27,568.01, the S&P 500 .SPX lost 77.75 points, or
2.24%, to 3,387.64 and the Nasdaq Composite .IXIC dropped
250.24 points, or 2.17%, to 11,298.04.
The pan-European STOXX 600 index .STOXX lost 1.81% and
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
1.78%.
MSCI's gauge of stocks globally hit a record high in
September and brushed against it earlier this month.
Emerging market stocks lost 0.70%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.39%
lower, while Japan's Nikkei .N225 fell 0.09%.
Europe became the second region after Latin America to
surpass 250,000 COVID-19 deaths on Saturday, according to a
Reuters tally, as many European countries reported their highest
number of infections in a single day. Sentiment was also hit by a survey showing German business
morale fell in October for the first time in six months.
Reports of progress in a COVID-19 vaccine being developed by
the University of Oxford and manufactured by drugmaker
AstraZeneca helped limit some of the market sell-off, analysts
said. As markets increasingly price in the likelihood of a
Democratic president and Congress which would likely result in a
rise in government spending and borrowing, U.S. 10-year Treasury
yields hit their highest since early June last week at 0.872%.
"We have raised the probability of a Democratic sweep,
already our base case, from 40% to just over 50% and have
increased our expectation of (Democratic presidential candidate)
Joe Biden to win from 65% to 75%," NatWest Markets analysts
said. "We see steeper U.S. yield curves and a weaker USD as
likely to prevail in our base case."
Benchmark 10-year notes US10YT=RR last rose 13/32 in price
to yield 0.7993%, from 0.841% late on Friday.
BlackRock Inc BLK , the world's largest asset manager, on
Monday downgraded U.S. Treasuries and upgraded their
inflation-linked peers ahead of the U.S. election. Despite encouraging news about a COVID-19 vaccine out of
Oxford, surging coronavirus cases sent investors to the safety
of the dollar. "Skittish investors are scooping up the greenback as virus
cases accelerate around the world, stimulus talks in Washington
remain in limbo, and trepidation is on the rise ahead of
America's presidential election," said Joe Manimbo, senior
market analyst at Western Union Business Solutions in
Washington.
The dollar index =USD rose 0.26%, with the euro EUR=
down 0.39% to $1.1813.
The Japanese yen weakened 0.09% versus the greenback at
104.85 per dollar, while sterling GBP= was last trading at
$1.3025, down 0.12% on the day.
In commodity markets, spot gold XAU= added 0.1% to
$1,903.00 an ounce. Silver XAG= fell 1.17% to $24.29.
Oil prices extended last week's losses. OPEC's secretary
general said an oil market recovery may take longer than hoped
as coronavirus infections rise worldwide, and OPEC and its
allies would "stay the course" in balancing the market.
U.S. crude CLc1 fell 3.56% to $38.43 per barrel and Brent
LCOc1 was at $40.32, down 3.47% 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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