Asian Stocks Dip As U.S. Political Concerns Grow

The Dow Jones Industrial Average fell 1.44%, the S&P 500 was 1.63% lower and the Nasdaq Composite settled down 1.65%.

European shares closed lower as surging COVID-19 cases raised investor concerns. Parts of the UK were put into lockdown and France imposed curfews.

In contrast to equity markets, currency markets were less pessimistic about the prospect of a stimulus breakthrough with the safe-haven dollar edging slightly lower amid expectations that U.S. lawmakers might still agree on a fiscal stimulus package at the 11th hour.

Greenback moves, however, were modest with the dollar index 0.015% lower on Tuesday. The dollar rose 0.03% against the yen to 105.46 while the euro was up 0.03% to $1.1772.

The Australian dollar fell 0.2% versus the greenback at $0.7045, hurt by expectations that the central bank would soon cut rates and expand its massive bond buying campaign to lower borrowing costs.

In oil markets, U.S. West Texas Intermediate (WTI) crude futures fell 0.3% to $40.69 a barrel while Brent crude futures dipped 0.6% to $42.36 a barrel.

(Editing by Sam Holmes)

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