NEW YORK – Global equities dipped and the dollar inched to a four-month high 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 hovered near two-week lows, while oil prices bounced back from steep losses Tuesday after a ship ran aground in the Suez Canal, though traffic was expected to resume soon.

“The mood is fairly fragile as all the optimism that characterised 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 shed 0.19 percent following steep declines in Asia and modest losses in Europe.

In morning trading on Wall Street, the Dow Jones Industrial Average rose 187.54 points, or 0.58 percent, to 32,610.69, the S&P 500 gained 17.15 points, or 0.44 percent, to 3,927.67 and the Nasdaq Composite added 32.25 points, or 0.24 percent, to 13,259.95.

The Ifo Institute said Germany’s extended lockdown is delaying recovery. It cut its 2021 growth forecast for Europe’s biggest economy to 3.7 percent from 4.2 percent 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 this month, as factories ramped up production at its fastest pace in over 23 years.

But the April numbers could be hit by the gathering pace of COVID-19 infections across Europe.

Benchmark 10-year notes last fell 3/32 in price to yield 1.6471 percent, up from 1.638 percent late on Tuesday.

US 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 US lawmakers that a coming round of post-pandemic price increases will not fuel a destructive breakout of persistent inflation. He meets with US lawmakers again on Wednesday.

The dollar index rose 0.181 percent, with the euro down 0.28 percent to US$1.1816.

“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-19 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 gained nearly 5 percent as Tesla Incchief Elon Musk said the company’s electric vehicles can now bebought using bitcoin.

US crude rose 3.27 percent to US$59.65 per barrel and Brent was at US$62.67, up 3.09 percent on the day.

Spot gold added 0.2 percent to US$1,730.20 an ounce.