GLOBAL MARKETS-Stocks fall despite Wall St stimulus hope; dollar flat

(Updates prices, adds comment)
* Reallocation, new stimulus bill give traders hope
* MSCI world stocks down, touch 2-month low
* U.S. labor market slowing as fiscal stimulus fades
* COVID-19 Global Tracker: https://tmsnrt.rs/2FkV6wq

By Rodrigo Campos
NEW YORK, Sept 24 (Reuters) - Wall Street rose on hopes of
more economic stimulus but the gains were not enough to lift an
index of stocks across the globe on Thursday, while the dollar
was little changed.
The Federal Reserve this week has talked up the importance
of more fiscal stimulus amid investor fears of another economic
hit from the coronavirus pandemic. Weak labor market data on
Thursday underscored that need. A Wall Street Journal report that House of Representatives
Democrats were readying a $2.4 trillion stimulus package added
to hopes after Federal Reserve Chair Jerome Powell and Treasury
Secretary Steven Mnuchin said hundreds of billions of dollars in
unused coronavirus aid funds could be reallocated to help U.S.
households and businesses. Even so, Wall Street's largest companies, some of which have
outperformed at a time of increased economic uncertainty, took
the lead in pushing indexes higher. The tech sector was the S&P
500's strongest performer.
"Investors are going to be needing stocks that can weather a
lower growth path because if we don't get another round of
fiscal stimulus, there's not going to be a lot more we can do to
continue boosting the economic recovery," said Max Gokhman,
capital markets strategist at Pacific Life Fund Advisors.
The Dow Jones Industrial Average .DJI rose 52.57 points,
or 0.2%, to 26,815.7, the S&P 500 .SPX gained 8.84 points, or
0.27%, to 3,245.76, and the Nasdaq Composite .IXIC added 43.86
points, or 0.41%, to 10,676.84.
The pan-European STOXX 600 index .STOXX lost 1.02%, and
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
0.36%.
Emerging market stocks lost 1.69%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 2.06%
lower, while Japan's Nikkei .N225 lost 1.11%.
The dollar index =USD ticked down but remained near
two-month highs as economic concerns boost its safe-haven
allure. The dollar index =USD fell 0.057%, with the euro
EUR= up 0.09% to $1.167.
The Japanese yen weakened 0.04% versus the greenback at
105.41 per dollar, while Sterling GBP= was last trading at
$1.2743, up 0.17%.
Oil prices turned higher as the dollar weakened, but the
prospect of slowing demand kept prices wobbly.
U.S. crude CLc1 recently rose 0.48% to $40.12 per barrel
and Brent LCOc1 was at $41.74, down 0.07% on the day.
U.S. Treasury yields dipped, caught between the downbeat
economic data, U.S. election uncertainty and the rise in stocks.
"People want to sell the market because of what is going to
take place in the election, then there are those who need to buy
yield and any time the market backs up they are right in there,"
said Tom di Galoma, managing director at Seaport Global Holdings
in New York. "That is why we are in a very tight trading range
at this point."
Benchmark 10-year notes US10YT=RR last rose 3/32 in price
to yield 0.6675%, from 0.676% late on Wednesday.
In emerging markets, Turkey surprised traders with a hike in
its policy rate by 200 basis points to 10.25%, sending the lira
and bonds higher. Spot gold XAU= added 0.1% to $1,865.37 an ounce. Silver
XAG= gained 0.62% to $23.01.

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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
COVID-19 Global Tracker https://tmsnrt.rs/2FkV6wq
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