UPDATE 2-European stocks slip after recent surge, all eyes on Trump-Biden debate

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* Banks lead decline after Monday's strong surge
* All eyes on first Trump-Biden debate
* Global coronavirus deaths rise above 1 mln

(Updates to market close)
By Sruthi Shankar
Sept 29 (Reuters) - European stocks slipped on Tuesday after
solid gains in the previous session, with banks, energy and
insurance sectors sliding as coronavirus cases mounted globally.
Investors were mostly in a wait-and-see mode as U.S.
Democratic presidential nominee Joe Biden and President Donald
Trump prepared for their first debate, five weeks before the
presidential election. The 90-minute showdown will begin at 0100 GMT on Wednesday,
with investors seeking hints on policy outlook.
The pan-European STOXX 600 .STOXX closed down 0.5%, in
line with tepid moves across global markets also watching for
progress in talks on more U.S. fiscal stimulus.
Banks .SX7P handed back some of the previous session's
5.6% gain, while other economically sensitive sectors like
insurers .SXIP and energy .SXEP fell more than 1.5% as the
global COVID-19 death toll crossed 1 million, a Reuters tally
showed. Still, many investors counted on continued stimulus from
central banks and governments to prop up the global economy
reeling from the health crisis.
"Our stance on equities is still constructive in the
medium-term, even if it's bumpy ride due to risks including
Brexit, U.S.-China trade friction and uncertainty around the
U.S. election," said Michele Morganti, equity strategist at
Generali Insurance Asset Management.
"We feel that recovery is still in place and cyclicals will
continue to find favour, and that will help the undervalued
regions like Europe versus U.S."
Solid gains for European markets on Monday helped the STOXX
600 turn positive for the third quarter, while the benchmark is
on course to end September with a more than 1% drop, its biggest
since a near 15% decline in March, when pandemic fears hit a
peak.
Sensor specialist AMS AMS.S jumped 6.6% to the top of
STOXX 600, with traders pointing to supportive news about
lighting group Osram OSRn.DE , which it recently took over.
British plumbing parts distributor Ferguson FERG.L gained
6.0% as it restored its dividend after a series of
cost-reduction measures and resilience in its main U.S. business
helped it report a 4.1% rise in annual profit. British baker Greggs GRG.L slid 8.1% as it cautioned that
the outlook was uncertain because of the pandemic and it would
have to cut staff jobs and hours. Finnish valves maker Neles NELES.HE gained 2.2% after
Valmet VALMT.HE approached the company with a merger proposal,
challenging a $2 billion bid that Neles' board recommended from
Swedish engineering group Alfa Laval ALFA.ST . Valmet shares
dropped 4.9%.