* * MSCI index dips less than 0.1%
* * German bond yields fall to lowest in seven weeks
* * Focus returns to U.S. fiscal stimulus plans
By David Randall
NEW YORK, Sept 29 (Reuters) - Global equity benchmarks
slipped and government bonds inched higher Tuesday as investors
remained hesitant ahead of the first U.S. presidential debate
and watched for progress in talks for further fiscal stimulus in
Washington.
With time running out to change minds or influence undecided
voters, the stakes are high as the main two White House
candidates take the stage tonight, five weeks before the Nov. 3
election. Former Vice President Joe Biden's campaign has seized on a
fresh line of attack on the eve of the debate with President
Donald Trump - set for after the U.S. market close - accusing
the Republican incumbent of gaming the system to avoid paying
his fair share of taxes.
Many see a Biden victory increasing the chances of further
fiscal stimulus to counter the economic damage from the COVID-19
pandemic, judging such a scenario a boon for stocks.
"What seems clear is that were you to see a blue wave, a
Democratic sweep, you'd see substantial fiscal stimulus," said
Mike Bell, global market strategist at J.P. Morgan Asset
Management. "The risk, I have always thought, to this recovery
is premature fiscal tightening."
"Tonight's debate will be critical, since it represents one
of the last set-piece opportunities for either candidate to
change the contours of the race," Deutsche Bank analysts wrote
in a note.
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
0.03% following broad declines in Europe and Asia. Among the
sectors in negative territory were growth-sensitive banks
.SX7P , automakers .SXAP and travel & leisure .SXTP , all
down 0.8%-1.5%.
In morning trading on Wall Street, the Dow Jones Industrial
Average .DJI fell 25.73 points, or 0.09%, to 27,558.33, the
S&P 500 .SPX lost 3.18 points, or 0.09%, to 3,348.42, and the
Nasdaq Composite .IXIC dropped 14.25 points, or 0.13%, to
11,103.27.
As the global death toll from COVID-19 rose past 1 million,
according to a Reuters tally, investors have remained focused on
prospects for a stimulus package to help the U.S. economy
recover from the damage wrought by the virus. U.S. House of Representatives Speaker Nancy Pelosi said on
Monday that Democratic lawmakers had unveiled a new, $2.2
trillion coronavirus relief bill. Pelosi in recent days has said
she thinks a deal can be reached with the White House on a new
coronavirus relief package and that talks were continuing.
Stimulus packages were also in focus in bond markets, where
Germany's 10-year bond yield DE10YT=RR fell to its lowest in
seven weeks before first-estimate inflation readings for
September. U.S. benchmark 10-year notes US10YT=RR last rose 2/32 in
price to yield 0.6561%, from 0.663% late on Monday.
The dollar index =USD fell 0.05%, with the euro EUR= up
0.27% to $1.1695.
Oil prices slipped as investors remained hesitant to take on
risk. U.S. crude CLc1 dropped 1.38% to $40.04 per barrel and
Brent LCOc1 was at $42.28, down 0.35% on the day.
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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
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