WASHINGTON/LONDON – Global shares fell Monday, driven by a rapid Taliban takeover in Afghanistan.
All three major US indices opened Monday sharply lower, after posting fresh record highs last week. The Dow Jones Industrial Average fell 134.63 points, or 0.38 percent, in early trading, while the S&P 500 lost 0.30 percent and the Nasdaq Composite dropped 0.32 percent.
The pan-European STOXX 600 index was down 0.5 percent past midday in London, easing from record levels last week.
The MSCI world equity index, which tracks shares in 45 nations, was down 0.57 percent.
Meanwhile, US Treasury yields slipped as demand for less risky US bonds ticked up. Benchmark 10-year yields fell to 1.235 percent. The yield curve between two-year and 10-year notes flattened 4 basis points to 103 bps.
Adding to dour investor sentiment was the sudden collapse of the Afghan government and what it may mean for political stability in the region.
That overall risk off mood also helped boost the dollar, sending it back to 92.589, up 0.1 percent on the day against a basket of currencies.
Investors this week will also be looking for fresh indications from the US Federal Reserve as to when the central bank might consider easing off on its massive stimulus. Minutes from the Fed's last policy meeting are due out on Wednesday, while Fed chair Jerome Powell is speaking Tuesday.
In commodity markets, gold ticked up to US$1,784, shaking off losses posted last week. US gold futures were up 0.46 percent at US$1,786.40.
Oil prices slid on concerns coronavirus travel restrictions would hurt demand.
Brent crude was last down 2.89 percent at US$68.58 per barrel, while US crude was last down 3.29 percent.