Commodities rise as dollar slips; global stocks end flat
Visitors looks at an electronic board showing the Japan's Nikkei average at the Tokyo Stock Exchange (TSE) in Tokyo, Japan, February 9, 2016. REUTERS/Issei Kato/Files
By Rodrigo Campos
NEW YORK (Reuters) - The U.S. dollar touched its lowest level in nearly eight months on Monday, lifting metals prices and commodity sector stocks, and U.S. crude reversed losses to settle above $40 a barrel.
Safe-haven gold hit a three-week high while the yen hit its highest against the dollar in almost a year and a half, as investors remained anxious about the strength of the global economy. The yen's strength pushed Tokyo to warn it could again intervene against its currency's rally.
On Wall Street stocks gave up gains in late trading to end lower, with miners and banks the only gainers ahead of the unofficial start to quarterly reporting season.
Earnings at S&P 500 companies are expected to have fallen 7.7 percent in the first quarter from a year ago. Excluding the energy sector, reeling from the slide in crude prices since mid 2014, the S&P earnings decline estimate improves to minus 2.6 percent according to Thomson Reuters I/B/E/S data.
"This is just all jitters and anticipation of the beginning of earnings season," said Jonathan Corpina, senior managing partner with Meridian Equity Partners in New York. "The expectations aren’t that high for earnings this quarter, so I think investors are starting to feel a little uneasy about that."
The Dow Jones industrial average <.DJI> fell 20.55 points, or 0.12 percent, to 17,556.41, the S&P 500 <.SPX> lost 5.61 points, or 0.27 percent, to 2,041.99 and the Nasdaq Composite <.IXIC> dropped 17.29 points, or 0.36 percent, to 4,833.40.
Volume on U.S. exchanges was 7.6 percent below the average in the past 10 days.
Europe's FTSEuroFirst 300 index of leading shares <.FTEU3> ended up 0.3 percent, helped by miners and a rally in Italian bank shares. European stocks have fallen for the last four weeks, and another down week would mark their worst run since mid-2013.
MSCI's gauge of shares across the globe <.MIWD00000PUS> rose 0.1 percent and Nikkei futures
YEN IN FOCUS
The U.S. dollar was last down less than 0.1 percent against the yen at 107.96 yen
The greenback's slide against Japanese currency prompted a warning from Japan's Chief Cabinet Secretary Yoshihide Suga, who said recent yen moves were one-sided and speculative and that the government would take steps as needed.
"The market is not afraid of intervention at these levels," said Vassili Serebriakov, currency strategist at BNP Paribas in New York. "Most people would look at 100 yen as the more realistic level in which Japan could intervene."
The euro
The dollar index <.DXY> hit its lowest level since late August.
The weaker dollar helped lift gold to its highest in three weeks. Spot gold
Peru's select stock index <.SPBLPGPT> rose 8.6 percent, the most for any session since late 2008, while the sol
In bond markets, the benchmark Treasury 10-year note
Brent crude prices rose to a four-month high as a rally in wider commodities markets encouraged buying ahead of a meeting of oil producers in Doha next Sunday, aimed at freezing current output levels.
Brent crude futures
(Reporting by Rodrigo Campos, additional reporting by Lewis Krauskopf and Gertrude Chavez-Dreyfuss; Editing by Chizu Nomiyama and Cynthia Osterman)
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