GLOBAL MARKETS-Stocks slide as coronavirus angst lingers, U.S. stimulus underwhelms

* Euro STOXX 600 rebounds, U.S. stocks lag
* Sterling, euro fall on new COVID-19 variant
* Dollar index rises but faces 3rd straight quarterly loss
* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh

By April Joyner
NEW YORK, Dec 22 (Reuters) - Lingering concerns over a new
variant of COVID-19 in the United Kingdom weighed on a gauge of
global equities on Tuesday and sent the euro, British pound and
U.S. Treasury yields lower.
The benchmark U.S. S&P 500 .SPX stock index ended lower in
choppy trade, despite the U.S. Congress' passage of an $892
billion aid package, as investors weighed the possibility of
further economic disruption from the coronavirus.
"The unfortunate truth is we've been struck with this
mutated virus from Great Britain, and now you're left with a
void as the market looks forward on a short-term basis," said
Robert Pavlik, senior portfolio manager at Dakota Wealth.
Some investors said the fiscal stimulus had already been
priced into U.S. equities, while other observers considered the
package underwhelming. "There were probably hopes that there would be something
bigger," said Michael Purves, chief executive of Tallbacken
Capital Advisors. "There's a good chance the economy will need
another package."
Weak U.S. economic data, including existing home sales and
an index of consumer confidence, also stymied stocks while
lending a boost to the dollar.
The sluggishness in U.S. stocks offset a rebound in European
stocks, which had been pummeled on Monday as fresh coronavirus
concerns mounted. Progress toward a trade deal between the
European Union and the UK helped lift the pan-European STOXX
index .STOXX , which ended 1.18% higher. The STOXX logged its
biggest one-day percentage gain in more than five weeks.
As a result of the performance in U.S. stocks, MSCI's index
of global stocks .MIWD00000PUS slipped. It fell 0.14%.
On Wall Street, the Dow Jones Industrial Average .DJI fell
200.94 points, or 0.67%, to 30,015.51, the S&P 500 .SPX lost
7.66 points, or 0.21%, at 3,687.26, and the Nasdaq Composite
.IXIC added 65.40 points, or 0.51%, at 12,807.92.
U.S. Treasury yields also fell as investors weighed the
likelihood of increased lockdowns in response to the new
COVID-19 variant. Benchmark 10-year Treasury notes US10YT=RR
last rose 6/32 in price to yield 0.9213%, versus 0.941% late on
Monday. Among currencies, the euro EUR=EBS and the pound GBP=D3
dropped, in part on expectations that such restrictions could
weaken Europe's economic outlook. On Monday, countries across
the world shut their borders to Britain because of fears over
the new variant. The euro was last down 0.69% to $1.2163, while the pound
fell 0.85% to $1.3357.
The risk-off sentiment in currency markets propped up the
dollar index =USD , which rose 0.55%. Even so, the index was
still on course for a third consecutive quarterly loss.
Oil markets also reflected sustained worries over the new
coronavirus variant. Brent LCOc1 settled 1.6% lower to $50.08
a barrel, while U.S. crude CLc1 dropped nearly 2% to $47.02 a
barrel. Still, some investors maintained hope for a strong economic
recovery in 2021, given expectations that vaccines would be
effective against the new variant of COVID-19.
The new mutation "is a bump in the road, but that road is
still leading to a much stronger recovery in the second half of
next year," said Hugh Gimber, global market strategist at J.P.
Morgan Asset Management.