The S&P 500 is down about 7% this week and Europe’s benchmark is more than 5% lower as virus cases surge and after American lawmakers failed to agree on an economic aid package before the Nov. 3 election. Analysts are also warning about increased volatility ahead of the presidential vote and in its aftermath, with some saying that a contested outcome is still a worrisome possibility.

“We’ve obviously got the election hanging over our heads. Then obviously Covid accelerating to the degree that it has both here in the U.S. as well as in Europe,” said Lori Heinel, deputy global chief investment officer at State Street Global Advisors. “And then you’ve got the lack of stimulus, which in our estimation is still necessary to get us through this period until we get an ultimate medical solution. It’s the triple whammy right now.”

The Stoxx Europe 600 Index fell to a five-month low, losing 3% as German Chancellor Angela Merkel reached a deal for a one-month partial lockdown to curb the spread of the virus. Auto and financial shares saw some of the steepest declines.

Elsewhere, oil fell sharply on concern lockdowns will sap demand. The dollar jumped and gold slumped. An exchange-traded fund tracking junk-rated corporate bonds fell to a one-month low. Bitcoin headed to its biggest drop in a month.

In Asia, stocks fared better. The MSCI Asia Pacific Index edged lower, and markets in South Korea and Shanghai posted modest gains. In China, indicators tracked by Bloomberg showed the recovery continued to display mixed signals while remaining broadly steady in October.

These are some events to watch this week:

• Bank of Japan and the European Central Bank have monetary policy decisions Thursday, followed by briefings from Governor Haruhiko Kuroda and President Christine Lagarde.
• The Chinese Communist Party’s Central Committee holds its plenum through Friday, where it’s expected to chart the course for the economy’s development for the next 15 years.
• Brexit negotiating teams have started intense daily talks, and these are likely to continue as both sides push to finalize a deal by the middle of November.
• The first reading of U.S. third-quarter GDP Thursday is anticipated to be the strongest on record following a record dive in the prior quarter as many businesses were shuttered by the pandemic.

Here are the main moves in markets:

Stocks

• The S&P 500 Index dropped 3% as of 2:52 p.m. New York time.
• The Stoxx Europe 600 Index decreased 3%.
• The MSCI Asia Pacific Index fell 0.5%.

Currencies

• The Bloomberg Dollar Spot Index increased 0.5%.
• The British pound declined 0.4% to $1.2994.
• The Japanese yen gained 0.1% to 104.3 per dollar.

Bonds

• The yield on 10-year Treasuries rose one basis point to 0.78%.
• Germany’s 10-year yield fell one basis point to -0.63%.
• Britain’s 10-year yield decreased two basis points to 0.21%.

Commodities

• West Texas Intermediate crude sank 5.3% to $37.46 a barrel.
• Gold weakened 1.6% to $1,878.36 an ounce.