* MSCI world index flat
* Oil prices remain under pressure
* Euro jumps more than 0.5% after ECB meeting
(Updates through midday U.S. trading)
By David Randall
NEW YORK, Sept 10 (Reuters) - Global equity benchmarks
hovered between small gains and losses and U.S. government bonds
fell on Thursday as investors weighed hopes of a sustained
rebound in U.S. technology stocks against the European Central
Bank's decision to leave its stimulus program unchanged.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS snapped its longest losing streak since February
with a 0.7% gain. Japan's Nikkei .N225 rose 0.9% and Chinese
blue chips .CSI300 rose 0.8%.
"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.
MSCI's gauge of stocks across the globe .MIWD00000PUS
gained 0.01%% following modest declines in Europe and gains in
Asia.
In midday trading on Wall Street, the Dow Jones Industrial
Average .DJI fell 157.97 points, or 0.57%, to 27,782.5, the
S&P 500 .SPX lost 18.68 points, or 0.55%, to 3,380.28 and the
Nasdaq Composite .IXIC dropped 33.96 points, or 0.3%, to
11,107.61.
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 fell 0.216%, with the euro EUR= up
0.62% to $1.1875.
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 is set to vote later on Thursday on a
Republican bill that would provide around $300 billion in new
coronavirus aid, far below the $3 trillion Democrats have said
is needed to stimulate an ailing economy and help Americans
struggling through the pandemic. 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.
In a sign of the unsettled day in markets, safe-haven assets
such as U.S. government bonds and risk assets like oil both
slipped.
Benchmark 10-year notes US10YT=RR last fell 3/32 in price
to yield 0.7132%, 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 0.81% to $37.74 per barrel
and Brent LCOc1 was at $40.50, down 0.71% 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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