Sept 29 (Reuters) - A look at the day ahead in European

and global markets from Wayne Cole.

Treasury yields and the dollar are down and most stocks a

shade higher in Asia as investors wait to see if last gasp talks

will prevent the U.S. government shutting from Wednesday.

Expectations don't seem high for a deal when President Trump

meets with the top Democratic and Republican leaders in

Congress later on Monday, with both sides seeing political

capital in letting the government close.

Analysts at BofA estimate a closure would cost 0.1% of GDP

per week, but would be made up when it re-opens. Historically,

such shutdowns have had little impact on financial markets,

perhaps because investors assume public pressure will ultimately

force a deal.

The timing is awkward for markets given that a closure would

delay the September payrolls report due on Friday, and a

protracted shutdown could leave the Federal Reserve flying blind

when it meets on October 29. So far, markets assume that would

not stop the Fed from easing, pricing in an 89% chance of a cut.

Wednesday is also when Trump's new tariffs on big trucks,

patented drugs and other items are due to go into place, though

there remains much confusion about what exactly will be covered

or whether existing country deals will take precedent.

Reuters reported the Trump administration is considering

imposing tariffs on foreign electronic devices based on the

number of chips in each one, though again how that would work in

practice is anyone's guess.

Trade partners must be wondering what's the point of doing

deals with Trump when he can just slap new levies on anything

out of the blue.

It's a busy week for Trump who on Tuesday is reportedly

attending the meeting of top U.S. military brass suddenly called

by Defense Secretary Hegseth last week.

"I want to tell the generals that we love them, they're

cherished leaders, to be strong, be tough and be smart and be

compassionate," Trump told Reuters in an interview, making the

point of the meeting no clearer.

Social media is abuzz with theories, ranging from Hegseth

wanting to extol the generals to follow a "warrior" culture, to

him asking the military leaders to swear an oath to Trump

personally. There's even talk the White House has decided to

pull the U.S. military back from Europe and Asia to concentrate

on the Americas alone.

Investors will be hoping nothing drastic happens this week

to cloud the fourth quarter, which historically is a bullish one

for equities. The Nasdaq, for instance, has on average returned

gains of more than 6% in the December quarter. World stocks are

already up 17% for the year, worth a cool $15 trillion. Gold and

Chinese tech are the biggest winners, both up almost 40%.

Key developments that could influence markets on Monday:

- EU consumer and business sentiment surveys, various EU

countries report CPI for September

- ECB speakers include Madis Muller, Martins Kazaks, Piero

Cipollone, Isabel Schnabel and Philip Lane.

- Fed speakers include Christopher Waller, Beth Hammack,

John Williams, Alberto Musalem and Raphael Bostic