* European shares fall, UBS results disappoint
* Wall Street lower after holiday weekend
* IMF downgrades world growth forecasts again (Updates with close of European markets)
By Chuck Mikolajczak
NEW YORK, Jan 22 (Reuters) - A gauge of world stock markets fell on Tuesday as concerns over global growth spurred investors to look towards safe-haven assets such as the Japanese yen and government bonds, with equities extending losses on additional trade worries.
Investors shunned risk assets like equities as the International Monetary Fund warned of a dimmer outlook on Monday, China confirmed its slowest growth rate in nearly 30 years, and as Brexit uncertainty continued to drag on sentiment. Wall Street, stocks took another step lower in the wake of a report from the Financial Times that the U.S. had turned down an offer of preparatory trade talks from China. The benchmark S&P 500 index fell to a session low and tested a technical support level at its 50-day moving average. a risk-off trade today and a lot has to do with just concerns over global growth," said Ryan Nauman, market strategist at Informa Financial Intelligence in Zephyr Cove, Nevada.
The Dow Jones Industrial Average .DJI fell 379.25 points, or 1.54 percent, to 24,327.1, the S&P 500 .SPX lost 42.66 points, or 1.60 percent, to 2,628.05 and the Nasdaq Composite .IXIC dropped 135.21 points, or 1.89 percent, to 7,022.02.
The decline put the benchmark S&P index on track for its biggest daily percentage fall since Jan 3.
European shares fell for a second straight session, with Swiss bank UBS UBSG.S sinking over 3 percent on disappointing earnings, spelling continued trouble for European banks .SX7E which lost nearly 30 percent last year. its World Economic Outlook report, the IMF predicted the global economy would grow at 3.5 percent in 2019 and 3.6 percent in 2020, down 0.2 and 0.1 percentage point respectively from estimates in October. downgrade mainly reflected weakness in Europe, with Germany hurt by new car-emission rules, Italy under market pressure due to Rome's recent budget standoff with the European Union, and Britain's planned exit from the EU hanging over the bloc as well.
MSCI's gauge of stocks across the globe .MIWD00000PUS shed 1.15 percent, after climbing 2.7 percent in the prior four sessions. The pan-European STOXX 600 index .STOXX lost 0.36 percent.
The Japanese yen strengthened 0.41 percent versus the greenback to 109.24 per dollar JPY= . dollar index .DXY , which rose to its highest since Jan. 4 helped by safe-haven demand, erased gains after data showed U.S. home sales tumbled to their lowest in three years in December and house price increases slowed sharply, suggesting a further loss of momentum in the housing market. dollar index .DXY , tracking the greenback against six major currencies, fell 0.08 percent.
The slowdown concerns also pushed U.S. Treasury yields lower as investors shifted some cash back into the bond market. Benchmark 10-year notes US10YT=RR last rose 14/32 in price to yield 2.732 percent, from 2.782 percent late on Friday. crude CLcv1 fell 2.79 percent to $52.53 per barrel and Brent LCOcv1 was last at $60.91, down 2.92 percent on the day. Global assets in 2018
http://tmsnrt.rs/2jvdmXl Global currencies vs. dollar
http://tmsnrt.rs/2egbfVh Bouncebackability
https://tmsnrt.rs/2RYxKky
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