GLOBAL MARKETS-Shares slip as U.S. presidential debate looms

* Euro STOXX 600 loses 0.4%
* Wall Street futures gauges point to losses
* Dollar flat
* Trump-Biden debate in focus
* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh

By Tom Wilson
LONDON, Sept 29 (Reuters) - European shares slipped on
Tuesday as investors awaited the first U.S. presidential debate
and eyed progress of a fiscal stimulus package in Washington.
The broader Euro STOXX 600 .STOXX fell 0.4%, eroding hefty
gains from a day earlier, with indexes in Frankfurt .GDAXI ,
Paris .FCHI and London .FTSE each losing between 0.4%-0.5%.
Among the sectors in negative territory: growth-sensitive
banks .SX7P , automakers .SXAP and travel & leisure .SXTP ,
all down between 0.7% and 0.9%.
Investors are weighing the potential impact on the U.S.
economy of either the re-election of President Donald Trump or a
victory for Democratic presidential nominee Joe Biden.
Many see a Biden victory increasing the chances of further
fiscal stimulus to counter the economic damage from the
coronavirus pandemic, judging such a scenario would be a boon
for stocks.
"What seems clear is that were you to see a blue wave, a
Democratic sweep, you'd see substantial fiscal stimulus," said
Mike Bell, global market strategist at J.P. Morgan Asset
Management. "The risk, I have always thought, to this recovery
is premature fiscal tightening."
Biden's campaign has seized on a fresh line of attack on the
eve of the debate with Trump - set for after the U.S. market
close - accusing the Republican incumbent of gaming the system
to avoid paying his fair share of taxes.
"Tonight's debate will be critical, since it represents one
of the last set-piece opportunities for either candidate to
change the contours of the race," Deutsche Bank analysts wrote
in a note.
U.S shares were set to open lower, with futures for the S&P
500 EScv1 and Nasdaq NQc1 giving up earlier gains to slip
into negative territory. Hard-hit sectors like hotels, banks and
airlines had made strong gains on Monday.
The MSCI world equity index .MIWD00000PUS , which tracks
shares in nearly 50 countries, was flat.
As the global death toll from COVID-19 rose past 1 million,
according to a Reuters tally, investors have remained focused on
prospects for a stimulus package to help the U.S. economy
recover from the damage wrought by the virus. U.S. House of Representatives Speaker Nancy Pelosi said on
Monday that Democratic lawmakers unveiled a new, $2.2 trillion
coronavirus relief bill. Pelosi in recent days has said she
thinks a deal can be reached with the White House on a new
coronavirus relief package and that talks were continuing.
CONSUMERS?
Also in focus was economic data due later in the day that is
set to shed light on the U.S. economy's progress, with consumer
confidence and home price data on the agenda.
The dollar held steady against a basket of currencies at
94.185 =USD , drifting away from a two-month high of 94.745
reached last week.
Earlier, MSCI's broadest index of Asia-Pacific shares
outside Japan .MIAPJ0000PUS was flat, shedding earlier gains.
China's blue-chip CSI 300 index .CSI300 climbed 0.2%, though
Hong Kong's Hang Seng index .HSI lost 0.9%, wiping out morning
gains.
Asian markets have been buoyed by positive signs around
China's economic recovery, although the continuing havoc caused
by the coronavirus pandemic has raised concern about high
valuations.
Elsewhere, sterling extended its overnight gains on optimism
about a Brexit trade deal as the European Union and Britain
kicked off a decisive week of talks.
The pound gained 0.2%, fetching $1.2863 GBP=D3 , just below
the $1.2930 mark touched overnight. Against the euro, sterling
changed hands at 90.775 pence.
"The surge of the pound yesterday was a reflection of the
more positive mood-music as the talks kicked off," MUFG analysts
wrote, adding that the pound could extend gains this week.
For Reuters Live Markets blog on European and UK stock
markets, please click on: LIVE/

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(
Reporting by Tom Wilson, Editing by William Maclean)