GLOBAL MARKETS-Stocks wobble on COVID-19, election uncertainty; dollar dips

* MSCI global stock gauge edges lower
* S&P, Dow drop, Nasdaq up; Europe stock indexes lower
* U.S. Treasury yields lower on stimulus deal doubts
* Oil rises on U.S. Gulf shutdowns

(Updates with open of U.S. markets, changes dateline to New
York)
By Lewis Krauskopf
NEW YORK, Oct 27 (Reuters) - A gauge of global stock markets
fell and the U.S. dollar slipped on Tuesday as investors
grappled with a surge in coronavirus cases and uncertainty over
the impending U.S. election.
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
0.22%. The pan-European STOXX 600 index .STOXX lost 0.86%,
while Wall Street's main indexes were mixed in early trade a day
after the S&P 500 .SPX posted its biggest drop in a month.
“The factors that helped drive the selloff yesterday - COVID
trends and the election uncertainty - are likely going to
persist this week,” said Keith Lerner, chief market strategist
at Truist/SunTrust Advisory.
“It's a bit of a low conviction tug-of-war until we move
past the election and see what the impact of these COVID numbers
rising are.”
The United States, Russia, France and other countries have
registered record numbers of infections in recent days, and
European governments moved to set new curbs in motion to try to
rein in a fast-growing surge of cases. Ahead of the Nov. 3 U.S. presidential election, former Vice
President Joe Biden leads President Donald Trump in national
opinion polls, but the race is close in key battleground states,
and investors have pointed to a tightening of the race as a
factor in Monday's volatility. On Wall Street, the Dow Jones Industrial Average .DJI fell
125.1 points, or 0.45%, to 27,560.28 and the S&P 500 .SPX lost
5.57 points, or 0.16%, to 3,395.4 while the Nasdaq Composite
.IXIC added 33.91 points, or 0.3%, to 11,392.84.
Investors also focused on corporate earnings with several
tech leaders due to report later in the week.
In foreign exchange markets, the dollar index =USD , which
measures the greenback against a basket of currencies, fell
0.143%, with the euro EUR= up 0.09% to $1.1819. U.S. Treasury yields fell and the yield curve was flatter as
hopes faded for a stimulus deal in Washington to arrive soon.
Euro zone bond yields also dipped. "The market wants some sort of stimulus. It's not getting it
yet," said Eric Jussaume, director of fixed income for Cambridge
Trust.
Benchmark U.S. 10-year notes US10YT=RR last rose 7/32 in
price to yield 0.781%, from 0.803% late on Monday.
Oil prices rose as oil companies shut down some U.S. Gulf of
Mexico output due to a hurricane, although surging coronavirus
infections and rising Libyan supply limited gains. U.S. crude CLc1 last rose 0.7% to $38.83 per barrel and
Brent LCOc1 was at $40.71, up 0.62% on the day.

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Emerging markets http://tmsnrt.rs/2ihRugV
Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn
Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh
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