GLOBAL MARKETS-Equities slide, bonds rally as tech rebound stalls; oil slips

* MSCI world index gives up earlier gains
* Oil prices remain under pressure
* Euro edges higher after ECB meeting

(Updates through close of U.S. trading)
By David Randall
NEW YORK, Sept 10 (Reuters) - Global equity benchmarks
slipped and U.S. government bonds rallied on Thursday as a
rebound in U.S. technology stocks stalled after the European
Central Bank left its stimulus program unchanged and a stimulus
bill failed in the U.S. Senate.
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
1.06% following modest declines in Europe and gains in Asia.
On Wall Street, the Dow Jones Industrial Average .DJI fell
406.02 points, or 1.45%, to 27,534.45, the S&P 500 .SPX lost
60 points, or 1.77%, to 3,338.96 and the Nasdaq Composite
.IXIC dropped 221.97 points, or 1.99%, to 10,919.59.
The ECB's decision not to ramp up its stimulus program
bolstered the euro, which has gained more than 8% against the
dollar since the spring and more than 4% against a basket of
currencies weighted by the bloc's foreign trade. The dollar index =USD rose 0.159%, with the euro EUR= up
0.1% to $1.1814.
Economists said the ECB will likely have to take more action
to support its economy, possibly in December. "But by resisting calls to cut interest rates deeper into
negative territory, the bank has consolidated the appeal of the
euro to global investors. It is now walking a tightrope of
currency appreciation, as it dare not let the euro rise too high
for fear of hampering the recovery of export-dependent economies
like Germany," said Ulas Akincilar, head of trading at the
online broker Infinox.
In the United States, initial claims for state unemployment
benefits came in slightly higher than expectations and totaled a
seasonally adjusted 884,000 for the week ended Sept. 5. That
matched the number of applications received in the prior week as
layoffs and furloughs persisted across industries. The U.S. Senate on Thursday killed a Republican bill that
would have provided around $300 billion in new coronavirus aid,
as Democrats seeking far more funding prevented it from
advancing. The failure of the measure left the future of any
additional coronavirus aid before the November presidential
election in doubt. Mizuho Bank's head of economics and strategy in Singapore,
Vishnu Varathan, said investors were grappling with whether this
month's steep U.S. tech sell-off was finished, and beyond that
an increasingly uncertain U.S. political outlook and persistent
Sino-U.S. tensions.
"It's too soon to say whether the rout is over, or whether
last night's recovery is simply a pause," ANZ analysts said in a
note on Thursday, referring to Wednesday's equity rebound.
In a sign of the unsettled day in markets, safe-haven assets
such as U.S. government bonds reversed course and rallied into
the U.S. close.
Benchmark 10-year notes US10YT=RR last rose 6/32 in price
to yield 0.6837%, from 0.703% late on Wednesday.
Concerns about demand for fuel also put oil prices under
pressure, an indication of wavering confidence in global growth.
O/R
U.S. crude CLc1 recently fell 2.37% to $37.15 per barrel
and Brent LCOc1 was at $39.79, down 2.45% 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
ECB inflation forecasts https://tmsnrt.rs/3k5dE2o
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