* Global stocks slip on U.S. stimulus delays
* Europe shares down 1.4 pct, Japan drops 0.3 pct
* Euro weak versus dollar and yen
By Jeremy Gaunt, European Investment Correspondent
LONDON, Feb 10 (Reuters) - World stocks fell after five days
of gains on Tuesday as investors fretted over U.S. plans to
boost the economy and save its banks.
The euro also wobbled after Russia denied seeking to
restructure as much as $400 billion in companies' foreign debts
after a Japanese newspaper said a local banking lobby group had
asked the government to help negotiate with creditors.
U.S. President Barack Obama has been taking his case
directly to the public to push Congress to act in the coming
week on an $838 billion economic stimulus package.
The U.S. Senate has moved closer to passing the bill,
setting up a vote on it version of the package on Tuesday.
But delays in fashioning compromise legislation, a mix of
government spending and tax breaks, could prevent Congress from
delivering a final bill to Obama by his deadline this weekend.
Questions were also being asked about the future of a U.S.
bailout plan for banks.
"It's starting to seem as if the economic stimulus plan will
be approved one way or another, but the bank bailout is really
important, and this uncertainty is growing," said Takashi Ushio,
head of the investment strategy division at Marusan Securities.
One result has been to make investors cautious.
World stocks as measured by MSCI <.MIWD00000PUS> were down
0.8 percent on Tuesday, although they gained more than 5 percent
over the previous five sessions.
The FTSEurofirst 30 <> lost 1.4 percent, also stirred
by mixed reaction to a roughly $7 billion net fourth quarter
loss from UBS <UBSN.VX>.
Earlier, Japan's Nikkei stock average <> slipped 0.3
percent or 23.09 points to close at 7,945.94. The broader Topix
<> fell 0.1 percent to end at 778.10.
RUSSIA WORRY
The euro fell against the dollar and yen but trimmed some
losses after Russia denied a media report that Russian banks
will ask Moscow to help them restructure its corporate debt
owned to foreign creditors.
But investors were wary of taking large positions ahead of
an eagerly awaited U.S. plan to shore up its banks. U.S.
Treasury Secretary Timothy Geithner is expected to unveil the
outline of the plan later on Tuesday.
The euro was down 0.8 percent at $1.2903, after falling to
$1.2811 <EUR=>, according to Reuters data. Against the yen, the
euro fell 0.6 percent to 118.27 yen <EURJPY=R> after hitting a
low of 116.72 yen.
Euro zone government bonds rose as equities fell.
Two-year Schatz yields <EU2YT=RR> slipped 2.9 basis points
on the day to 1.405 percent, while 10-year Bunds yielded
<EU10YT=RR> 3.362 percent, down 4.4 basis points.
These moves saw the 2-10 year yield curve flatten slightly
to 195 basis points, off Monday's high above 200 basis points --
the steepest since the introduction of the euro in 1999.
(Additional reporting by Elaine Lies)
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http://blogs.reuters.com/globalinvesting; for the MacroScope
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(editing by Mike Peacock)
