* Possible U.S. government shutdown, lack of Fed clarity
* World shares hold near one-week low
* German consumer confidence hits six-year high
* Oil above $109 as little thaw seen in U.S./Iran relations
NEW YORK, Sept 25 The dollar fell and world
share indexes remained near a one-week low on Wednesday as
concerns over a potential government shutdown in Washington and
mixed signals on U.S. monetary policy kept investors cautious.
A vote is due in the U.S. Senate on a motion that will allow
the government to keep running beyond the end of the month when
budgets are due to expire, though lawmakers have yet to find
enough common ground to ensure its passage.
A temporary spending measure would keep the government
running after the Oct. 1 start of the new budget year.
Investors, wrong-footed by last week's surprise decision by
the Federal Reserve not to begin trimming its bond-buying
stimulus, are still debating the central bank's next steps and
what mixed signals from policymakers say about the economy's
"Investors are not willing to sell the market only to see
some kind of agreement reached that would give it support, nor
jump in knowing it could get a lot uglier before it is
resolved," said Rick Meckler, president of investment firm
LibertyView Capital Management in Jersey City, New Jersey.
Meckler said there was confidence an agreement would
eventually be reached, but "it seems we can't get out of the way
of the political games that surround funding and operating the
The Dow Jones industrial average was down 14.54
points, or 0.09 percent, at 15,320.05. The Standard & Poor's 500
Index was down 1.65 points, or 0.10 percent, at 1,695.77.
The Nasdaq Composite Index was down 8.15 points, or 0.22
percent, at 3,760.11.
The dollar was flat at 98.72 yen from late U.S.
levels on Tuesday and down 0.1 percent against a basket of six
The euro was firmer against the dollar at around the $1.35
level, supported by data showing German consumer
confidence was running at a six-year high heading into October.
The MSCI world equity index, which tracks
shares in 45 countries, was down 0.1 percent on the day.