Investors opted for safety on Tuesday, driving world stocks lower and

propelling bids for government bonds and the US dollar on poor results from UBS and a shake-up of UK banks Lloyds and Royal Bank of Scotland .

World stocks as measured by MSCI fell 0.44 percent. The

index rallied by 75 percent between early March and late October on growing

optimism over the global economy, but fell 4 percent last week.

The Dow Jones industrial average was off 17.53 points, or 0.18

percent, at 9,771.91, but the Standard&Poor's 500 Index was up 2.53

points, or 0.24 percent, at 1,045.41.

Gold, which typically benefits during periods of uncertainty for economic

growth and financial markets, jumped to a record, but not on risk-aversion

trades. Spot gold prices hit a record $1088 following news that India's

central bank bought 200 metric tons of the metal from the International

Monetary Fund, heightening speculation there may be more official purchases.

To read more, double-click on the square brackets below:

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MARKET REPORTS:

> GLOBAL MARKETS-Bank troubles hit stocks, US dollar jumps

> MONEY MARKETS-US dollar funding costs ease, 3-months at low

> EMERGING MARKETS-Bank fears rattle, S.African rand bounces

> COMMODITIES-Gold, commodities rally with US dollar

ECONOMIC AND FINANCIAL NEWS MOVING GLOBAL MARKETS

> GM opts to keep Opel, scraps sale to Magna

> GM sees Oct sales bounce, Chrysler sales plunge

> US factory orders rise, bolstering recovery

> Warren Buffett buying Burlington Northern for $26 bln

> UK banks get 31 bln pounds more aid, agree sell offs

> G20 to work on global rebalancing timeline - US official

> IMF says debt high but too early to adjust fiscal policies

> Spain's unemployment jumps on end of stimulus

> India fiscal stimulus to stay, summer crop seen down

> India buys half of IMF's gold for sale

ANALYSES ON GLOBAL ECONOMIC AND MARKETS

> Central banks lead subtle shift away from US dollar

> G20 to launch drive to rebalance world economy

> Data discrepancies make Bank of England hard to predict

> What the Fed is considering at its Nov meeting this week

> Mexico faces possible credit downgrade after tax bill

> Jobs the mising link in global rebound

> Central banks to test investors next week

> Will US Q3 GDP be as good as it gets ?

> Wall Street stocks seen near correction

FACTBOXES

> G20 progress on financial regulation

> Largest US bankruptcies

> US legislation on financial systemic risk

> TEXT-Bank of Canada monetary policy report

> Which central banks will raise rates next ?

> Major US financial regulation reform proposals

> TEXT-G7 communique at Istanbul meeting on Oct 3

> TEXT-Final G20 communique on financial regulation

> TEXT-Final G20 communique on framework for economic growth

> FSB progress report on G20 financial rules reform

> TEXT-Federal Reserve statement after policy meeting Sept 23

> Potential Fed exit strategy tools

(Americas Economics and Markets Desk +1-646-223-6300)

Keywords: FINANCIAL/MARKETS LOOK

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