* World shares fall slightly
* European shares down 1.2% after positive session in Asia
* Nasdaq futures fall 2.5% as New York trading resumes
* Dollar inches up before ECB, pound under Brexit pressure
* Oil falls below $41 on demand fears
By Danilo Masoni
MILAN, Sept 8 (Reuters) - World shares struggled on Tuesday
as doubts about a recovery in tech stocks lingered after last
week's rout, while the dollar awaited policy signals from the
European Central Bank and the pound remained hostage to Brexit
jitters.
Fresh tensions between Washington and Beijing after U.S.
President Donald Trump again raised the idea of decoupling the
U.S. and Chinese economies also came into focus but appeared to
have little impact.
"I think the market will shrug this off as electioneering
but may find the lining up of technology stock sellers harder to
process as the U.S. market returns from a holiday yesterday,"
said Chris Bailey, European Strategist at Raymond James.
World shares .MIWD00000PUS fell 0.2% by 1126 GMT following
gains in Asia overnight and a negative session in Europe, where
fresh pressure on tech stocks dragged the STOXX 600 .STOXX
benchmark down 1.2% following strong gains on Monday.
Futures on the tech-heavy Nasdaq NQcv1 fell 2.5% after
having lost more than 6% late last week, as trading in New York
resumed after the Labor Day holiday break. They remained,
however, above Friday's intraday lows.
Futures on the broader S&P 500 EScv1 index also fell, by
0.7%, reversing gains made in Asian hours.
While many market players were unable to pinpoint a single
trigger for the Nasdaq's sudden plunge, valuations have been
stretched given its 75% gain from a bottom hit in March with big
bets on the option market possibly creating extra turbulence.
"Whatever the reason... tech and growth investors have to
decide whether this is a chance to buy on the dips - yet again -
or a call to lock in what could be substantial profits," said AJ
Bell Investment Director Russ Mould.
Trading in Europe and indications from U.S. futures marked a
stark contrast to activity earlier in Asia.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rose 0.4% and Japan's Nikkei advanced 0.8%
.N225 . China's blue-chip index .CSI300 and Hong Kong's Hang
Seng .HSI meanwhile rose 0.5% and 0.2% respectively, both
erasing early losses made after Trump's remarks. The newly launched Hang Seng tech index .HSTECH , however,
fell 1.4%, underscoring the ongoing fragility of global tech.
Trump's remarks followed the possible U.S. blacklisting of
China's largest chip maker, Semiconductor Manufacturing
International Corp (SMIC), which has hit many Chinese tech firms
listed onshore and offshore. EDGES UP, POUND SINKS
In foreign exchange markets, the dollar rose slightly
against a basket of currencies =USD at 93.291 and stood up
against the euro EUR=EBS at $1.1800 with the main focus on
Thursday's ECB policy meeting.
Most analysts do not expect a change in the central bank's
policy stance but are looking at its inflation forecasts and
whether an accommodative tone could help cool down the surge in
the bloc's single currency.
"I think the ECB's message will be clearly dovish, given the
latest numbers on inflation and the recent rally in the euro,"
said Pasquale Diana, Senior Macro Economist at investment
manager AcomeA SGR.
Sterling was a big mover. It fell to a four-week low against
the dollar on ongoing concerns that Britain was preparing to
override the Brexit divorce deal it signed in January, as EU
talks started.
Concerns mounted on Tuesday after the Financial Times
reported that the head of the British government's legal
department had quit over the suggestions that Prime Minister
Boris Johnson was threatening to override the divorce deal.
The pound slipped 0.9% to $1.3048 GBP= while against the
euro EURGBP= it touched 0.90 pence, its lowest since Aug. 20.
Gold prices softened on Tuesday, weighed on by a stronger
dollar, although doubts over the economic recovery from the
COVID-19 slump limited losses. Spot gold XAU= fell 0.6% to
$1,916.40 per ounce.
Oil fell below $41 a barrel, its fifth session of decline,
pressured by concerns that a recovery in demand could weaken as
coronavirus infections flare up around the world.
Brent crude LCOc1 fell 3.2% to $40.60 a barrel, while U.S.
West Texas Intermediate (WTI) crude CLc1 dropped 5.4% to
$37.62.
The 10-year U.S. Treasury yield stood at 0.6902%
US10YT=RR , off a five-month low of 0.504% touched in August.
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