The US dollar rose on Monday, to head for its second gain in 3 days, as demand increased due to investors' risk-aversion after the sharp spike of coronavirus infections in Europe and the US, in addition to doubts about the US passing the new Covid-19 aid package before the presidential election next week.

The dollar index rose 0.3% to 93.07 points, after opening at 92.76, and hit an intraday low at 92.74.

The index lost 0.2% on Friday, after rising by 0.3% on Thursday, within recovery attempts from a 7-week low of 92.47 points.

The dollar index lost more than 1% during the past week and posted its third weekly loss in a month, and the largest weekly loss since July.

This came due to strong market sentiment, which propelled demand for high-risk currencies, after progress was made in the ongoing political talks about the US second fiscal stimulus package.

France reported a record rise of new Covid-19 cases on Sunday, which rose to over 50,000 cases per day, and Italy ordered restaurants and bars to be closed early, while the Spanish government declared a nationwide curfew.

The US reported on Friday that Covid cases rose more than 83,000 cases, the highest number so far since mid-July.

These developments are indicators of the second wave spread, which threatens any economic recovery that happened after the first wave.

US House of Representatives Speaker Nancy Pelosi said on Sunday that she will have some answers from the White House on Monday regarding a coronavirus stimulus deal.

These statements alongside few signs of progress in the political talks about the stimulus package indicate that the deal will not be launched before the US presidential election.

European stocks fell in early trading on Monday, to drop near a 4-week low, and resume losses after hitting a pause on Friday, due to investors' risk-aversion after the sharp spike of coronavirus infections in Europe and the US.

The Stoxx Europe 600 index fell 1.8% as of 11:45 GMT, after it closed higher by 0.6% on Friday, and posted the first gain 5 days within recovery attempts from a 4-week low of 356.43 points.

The index lost 1.5% during the past week, posting the second straight weekly loss, on risk aversion due to concerns about the European economic recovery and doubts about the US stimulus package.

The pan European index opened lower today, to drop near a 4-week low, with most of the major European markets and sectors seeing red today.

The tech sector saw the largest losses in Europe today, dropping nearly 5.0%, after the German company SAP cut its full-year business outlook, and warned of a slower-than-expected recovery from the coronavirus impact, which pushed its sharer to lose more than 16%.

France reported a record rise of new Covid-19 cases on Sunday, which rose to over 50,000 cases per day, and Italy ordered restaurants and bars to be closed early, while the Spanish government declared a nationwide curfew.

The US reported on Friday that Covid cases rose more than 83,000 cases, the highest number so far since mid-July.

S&P 500 futures fell over 1.1%, after closing higher by 0.3% on Friday at Wall Street, posting the second straight daily gain.

Back to Europe, the Euro Stoxx 50 index fell more than 1.8%, France's CAC 40 fell 0.8%, Germany's DAX fell 2.5%, and the UK's FTSE 100 lost 0.3%.

Oil prices fell on Monday, for the second straight day, and hit a 3-week low, amid demand concerns due to the second wave of the coronavirus, in addition to rising Libyan output, and the US increase of its drilling and exploration activities.

US crude fell 3.2% to the lowest level since October 5 at $38.44 a barrel, after opening at $39.72, and hit a session-high of $39.72, and Brent fell 2.75% to the lowest since October 5 at $40.38, after opening at $41.52, and hit a high $41.60. 

US crude lost 2.1% on Friday, and Brent futures lost 1.75%, the second daily loss in 3 due to global demand concerns.

Oil prices lost 2.5% during the last week, posting the first weekly loss in 3 weeks, as the global demand concerns offset OPEC-Plus' pledge to support the market.

The US reported the highest number so far of new Covid-19 infections in two days on Saturday, and new cases in France rose to over 50,000 cases per day on Sunday.

The Spanish government declared a new state of emergency, and Italy ordered restaurants and bars to be closed by 6 pm.

These developments are indicators of the second wave spread, which threatens any fuel demand recovery.

The National Oil Corporation in Libya ended the oil port blockade, and said that production will reach 1 million barrels per day within a month, which is faster than expected.

Daily production in Libya jumped to about 500 thousand barrels per day, and expectations indicate that production will double by the end of the year, after the receding of the armed military conflict in the country.

Baker Hughes revealed on Friday that the US oil drilling rigs count rose 6 rigs, marking the fifth straight weekly increase.

The total operating rigs in shale oil fields rose to 211, the highest level since the week ending May 29.

The US production jumped over 47% to its all-time high at 13.1 million barrels per day since mid-2016, but following the coronavirus pandemic it stabilized around 11 bpd, which makes the US the world's largest oil producer.

Euro fell in European trade against dollar as a second wave of the coronavirus spreads, threatening to damage the global economy's hesitant recovery. 

EUR/USD fell 0.35% to 1.1813, after closing up 0.3% on Friday, closing near a five-week high at 1.1880. 

The common currency rose 1.2% last week, the third weekly profit in a row and the largest since July. 

Back then, investors hoped for progress in US Covid relief talks before the November elections. 

France and the US marked fresh record highs in Covid 19 daily infections for two subsequent days, while Spain announced a new emergency state. 

US House President Nancy Pelosi said she expects a response from the White House on Monday in regards to the financial relief package. 

Investors now don't expect the new rescue bill to be passed before the US Presidential elections, damaging sentiment further.