(Adds U.S. market open, byline, dateline; previous LONDON)
* U.S., European, Asian stocks decline
* Fed pledges low rates until 2023 but no new stimulus
* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh
By Herbert Lash
NEW YORK, Sept 17 (Reuters) - Global equity markets and gold
slumped, while the dollar eased on Thursday after the Federal
Reserve reminded investors of the long slog ahead for a full
recovery that was reinforced by data showing persistently high
claims for U.S. unemployment benefits.
U.S. Treasury yields dropped and the yield curve flattened
as investors expressed disappointment that after its
policy-setting meeting on Wednesday the Fed did not unveil more
measures to stimulate the economy.
Wall Street's main indexes tumbled as the technology sector
and related stocks slid further, with Apple Inc AAPL.O and
Amazon.com Inc AMZN.O among the biggest drags on the Nasdaq.
The number of Americans filing new claims for unemployment
benefits fell less than expected last week and applications for
the prior period were revised up, suggesting the labor market
recovery had shifted into low gear amid fading fiscal stimulus.
[nL1N2GD24N}
The Fed is doing all it can without appearing to be in panic
mode, said Rick Meckler, a partner at Cherry Lane Investments, a
family investment office in New Vernon, New Jersey.
Investors face few alternatives other than stocks so some
are taking profits ahead of the U.S. presidential election in
November from this year's unexpected gains after the impact of
the coronavirus pandemic, he said.
"The Fed has been the most predictable part of the U.S.
government. They did exactly what they told you they were going
to do, they've been doing exactly what they said they were going
to do for now well over a year," Meckler said.
"If there's more stimulation to come it's going to have to
come from Congress and the president, and on that front we seem
probably stymied until the election."
Fed Chair Jerome Powell indicated a long road to "maximum
employment" but some investors were disappointed by the lack of
further stimulus plans even as policy-makers pledged to keep
interest rates near zero for a prolonged period. MSCI's global benchmark for equity markets .MIWD00000PUS
fell 0.66% to 571.19, while its emerging markets index .MSCIEF
fell 1.04%.
In Europe, the broad FTSEurofirst 300 index .FTEU3 dropped
0.40% to 1,440.42.
On Wall Street, the Dow Jones Industrial Average .DJI fell
0.16%, the S&P 500 .SPX lost 0.51% and the Nasdaq Composite
.IXIC dropped 0.98%.
Traders were also taking in Bank of Japan and Bank of
England meetings and plenty of emerging market action, but the
tone was set by the events overnight at the Fed and in the
trenches of the tech war.
The dollar rebounded for its best daily gain in more than a
week against a basket of other top currencies =USD and the
euro EUR= dipped back under $1.18 /FRX .
The dollar index =USD fell 0.097%, with the euro EUR=
down 0.02% to $1.1812.
The Japanese yen JPY= strengthened 0.30% versus the
greenback at 104.62 per dollar.
In Europe, banks .SX7P , automakers .SXAP and miners
.SXPP were the biggest sector decliners. Volkswagen
VOWG_p.DE , Renault RENA.PA and PSA Group PEUP.PA fell
between 2.5% and 3% after industry data showed European car
sales fell by 17.6% in August. The stronger dollar inflicted some damage in emerging
markets too. Turkey's battered lira hit its latest record low
TRY= , Argentina announced new capital controls just weeks
after its ninth debt restructuring and there was a
third straight day of falls for eastern European currencies.
CEE/
Overnight in Asia, MSCI's broadest index of Asia-Pacific
shares outside Japan .MIAPJ0000PUS lost 1% after five straight
days of gains while the Nikkei in Japan .N225 and KOPSI in
South Korea .KS11 shed 0.6%. and 1.2%, respectively. .T
SUB-ZERO CHILL
News the Bank of England had done more work on a possible
shift to negative interest rates dunked sterling back under
$1.29 again after it lost 3.5% this month following a fresh bout
of Brexit chaos. The Australian dollar lost as much as 0.4% to $0.7278
AUD=D4 , having erased earlier gains made after
stronger-than-expected local jobs data.
The Chinese yuan also dropped about 0.35% to 6.7686 per
dollar CNH=D4 , stepping back from a 16-month high hit on
Wednesday.
The yen hit a 1-1/2-month high of 104.62 to the dollar
JPY= after the Bank of Japan made no changes to its rates or
stimulus.
With focus on new Prime Minister Yoshihide Suga, who is seen
by some as a strong opponent of a higher yen, some traders said
the market may be tempted to test his resolve on the currency.
"One interesting speculative trade in the near-term will be
to long the yen ahead of the coming long weekend in Japan," said
a senior trading manager at a major Japanese bank.
BOJ chief Haruhiko Kuroda had said it would work closely
with the Suga government to support the economy. Brent crude futures LCOc1 rose $0.86, to $43.08 a barrel.
U.S. crude futures CLc1 gained $0.68, to $40.84 a barrel.
Spot gold prices XAU= fell 0.79% to $1,943.90 an ounce.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Fed "dot plots" https://tmsnrt.rs/2FEvjyV
MSCI world stocks index sector weightings since 1994 MSCI world
stocks index sector weightings since 1994 https://tmsnrt.rs/3mtUK7h
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>