GLOBAL MARKETS-Virus, stimulus angst hit world stocks; dollar shines

(Adds close of U.S. markets)
* Stocks on Wall Street slide for third straight day
* Dollar advances after best day in three weeks
* Oil eases as new lockdowns raise demand concerns

By Koh Gui Qing and Huw Jones
NEW YORK/LONDON, Oct 15 (Reuters) - Global shares closed
lower on Thursday as investors shied from risk and sought safe
havens such as the U.S. dollar on fears that a resurgence in
coronavirus cases and a lack of more U.S. fiscal stimulus would
hobble the world economy.
Although an offer by U.S. President Donald Trump on Thursday
to raise the size of a stimulus package narrowed losses in U.S.
shares as investors hoped a deal could be reached, many still
believe that is unlikely before the Nov. 3 election.
Uncertainty over a stimulus package was compounded by data
that suggested more government aid is needed to shore up growth,
especially in the face of a spike in COVID-19 cases in Europe.
Data on Thursday showed an unexpected rise in U.S. weekly
jobless claims figures. The run of negative news dragged on European shares, which
had their worst day in 3-1/2 weeks.
By late Thursday, all three major U.S. stock indexes had
pared losses, with the Dow industrials closing near break-even.
The Dow Jones Industrial Average .DJI fell 19.8 points, or
0.07%, to close at 28,494.2. The S&P 500 .SPX lost 5.33
points, or 0.15%, to 3,483.34 and the Nasdaq Composite .IXIC
dropped 54.86 points, or 0.47%, to 11,713.87.
"Virus restrictions across Europe continue to sour
sentiment," wrote Win Thin and Ilan Solot, currency strategists
at BBH Global Currency Strategy, adding that a U.S. fiscal
stimulus package is "deader than Elvis."
"Now, the U.S. economy goes into the winter months without
much-needed fiscal stimulus," they wrote in a note.
The pan-European STOXX 600 .STOXX skidded 2.1% to a near
two-week low, marking its biggest one-day fall in almost 3-1/2
weeks.
London's FTSE 100 .FTSE fell 1.7% to a near two-week low
as worries about the pandemic and uncertainty around a Brexit
trade deal spurred investors to book profits.
MSCI's broadest index of Asia-Pacific shares .MIAPJ0000PUS
lost 1.3% with Hong Kong .HSI and India .NSEI both down over
2%, and Japan's Nikkei .N225 closing down 0.5%.
Underlining concerns about the health of the world economy,
data showed on Thursday China's factory gate prices fell at a
faster-than-expected rate in September while consumer inflation
slowed to its weakest pace in 19 months. The move toward safety helped the U.S. dollar, a traditional
safe-haven asset. The greenback =USD jumped 0.4% against a
basket of six major currencies to 93.818.
A firmer dollar dragged on sterling GBP=D3 , already
hammered by concerns about the obstacles that may keep the
European Union and Britain from reaching a trade deal by Dec.
31. The pound slumped 0.9% to $1.2897.
The euro EUR=D3 drooped 0.4% against the dollar to
$1.1702, barely budging on comments by European Central Bank
President Christine Lagarde that the ECB was ready to ease
policy further if needed. Traders' preference for safety helped government bonds.
Germany's government bonds DE10YT=RR rallied to leave their
yields at their lowest level since the March spread of COVID-19
caused a global meltdown in stock markets and other riskier
assets. GVD/EUR
Gold reversed earlier losses to trade in the black, helped
in part by Trump's comments that he was keen on more U.S. fiscal
stimulus before the November election.
U.S. gold futures GCv1 settled up 0.1% at $1,908.90 an
ounce.
Oil prices, however, were weighed by concerns about the
coronavirus and its impact on the world economy, though losses
narrowed compared with earlier in the day.
Brent crude futures LCOc1 dropped 16 cents to settle at
$43.16 a barrel, while U.S. West Texas Intermediate crude
futures CLc1 slipped 8 cents to settle at $40.96 a barrel.

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