GLOBAL-MARKETS-U.S. stocks gain, dollar falls as stimulus hopes grow

* Stimulus hopes boost US stocks
* Dow Jones Industrial Average up 0.2%; S&P500 up 0.4%
* European indexes hit by coronavirus spikes
* Dollar touches lowest level in a week

By Matt Scuffham
NEW YORK, Oct 20 (Reuters) - Wall Street opened higher and
the dollar hit a one-week low on Tuesday as investors were
hopeful of more relief from Washington with U.S. Senate
Republicans preparing to vote on a bill to help small businesses
hammered by the COVID-19 pandemic.
House of Representatives Speaker Nancy Pelosi and Treasury
Secretary Steve Mnuchin will talk again on Tuesday, after a
53-minute telephone conversation on Monday "continued to narrow
their differences" about the coronavirus aid package, a Pelosi
spokesman said on Twitter. Pelosi has set the end of Tuesday as a self-imposed deadline
for reaching a deal on a package.
The Dow Jones Industrial Average .DJI rose 50.43 points,
or 0.18%, at the open to 28,245.85.
The S&P 500 .SPX opened higher by 12.46 points, or 0.36%,
at 3,439.38, while the Nasdaq Composite .IXIC gained 52.95
points, or 0.46%, to 11,531.83 at the opening bell.
"The stimulus package seems to be the major fixation for
investors right now — the idea of Republicans and Democrats
agreeing on the next payments going forward," said Rick Meckler,
a partner at Cherry Lane Investments in New Vernon, New Jersey.
European stocks had lacked direction with record COVID-19
cases across the region and fears about the economic impact of
new lockdown restrictions offsetting some strong company
earnings.
Ireland announced some of Europe's strictest curbs on
Monday, telling people not to travel more than 5 km (three
miles) from home. New restrictions were also approved in Italy's
Lombardy region. France reported a large increase in the number of people
hospitalized with the coronavirus. Europe's STOXX 600 .STOXX was down 0.1% while MSCI's main
European Index was up 0.2% .MSER The MSCI world equity index, which tracks shares in 49
countries, was down 0.2% .MIWD00000PUS .
Overnight, MSCI's broadest index of Asia-Pacific shares
outside Japan .MIAPJ0000PUS dropped 0.2%, while Australian
.AXJO and Japanese .N225 markets dipped.
The dollar fell against a basket of currencies, touching its
lowest levels in a week. The dollar index .DXY fell with the
euro EUR= , rising 0.4%.
The pound edged down versus the euro, as Brexit negotiations
appeared stuck in limbo. The British government has said it sees
no basis to restart the talks with the European Union unless
there is a fundamental change in approach.
Euro zone government bond yields rose, with the benchmark
10-year German yield retreating from recent seven-month lows at
-0.13% DE10YT=RR .
Oil prices fell on fears that a resurgence of COVID-19
infections would stifle the recovery in fuel demand.
Brent crude LCOc1 futures were trading down 0.9% at $42.27
a barrel, recovering ground after falling as low as $42.19
earlier in the session. U.S. West Texas Intermediate (WTI) crude
CLc1 futures fell 0.8% to $42.27 a barrel.
Spot gold prices XAU= fell 0.1% to $1,903.31 an ounce.

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