Stocks slip, bond yields dip from four-month highs
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FILE PHOTO - A man walks in front of a screen showing today's movements of Nikkei share average outside a brokerage in Tokyo, Japan, June 2, 2016. REUTERS/Issei Kato
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By Dion Rabouin
NEW YORK (Reuters) - Major stock markets around the world fell on Monday and U.S. and European bond yields slipped from four-month highs amid uncertainty over the health of the global economy.
U.S. stocks fell as declining oil prices pushed energy stocks down and consumer discretionary shares stumbled.
Stocks moved lower after comments from Federal Reserve Vice Chairman Stanley Fischer, who said economic stability could be threatened by low interest rates, but it was "not that simple" for the Fed to raise rates.
European stocks closed lower across the board with the pan-European FTSE Eurofirst 300 <.FTEU3> index down 0.69 percent.
A global tracker of emerging market stock indexes <.MSCIEF> fell 0.26 percent.
"We’ve got a bunch of uncertainty coming up. You have first the election, then you have the OPEC meeting where they are finally going to actually say what they are going to do and at some point here you probably have a 25-basis point increase in the Fed funds rate," said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York.
The Dow Jones industrial average <.DJI> fell 51.98 points, or 0.29 percent, to 18,086.4, the S&P 500 <.SPX> lost 6.48 points, or 0.3 percent, to 2,126.5 and the Nasdaq Composite <.IXIC> dropped 14.34 points, or 0.27 percent, to 5,199.82.
A gauge of equity markets around the globe <.MIWD00000PUS> was down 0.34 percent.
Oil prices fell, weighed by oversupply concerns, with a spike in trade volume driving U.S. prices back below $50.
Brent crude futures
U.S. and European government bonds reversed earlier selling and rose in price on bargain-hunting by investors who scooped up government debt that had fallen in price on Friday following remarks by Federal Reserve Chair Janet Yellen, analysts said. Yellen had said the central bank may tolerate inflation above its 2-percent goal.
Benchmark 10-year Treasury note yields earlier hit their highest since June 2 and German and British bonds touched their highest since late June.
Buying in Treasuries increased in afternoon U.S. trading as losses on Wall Street and a surprise drop in a New York Federal Reserve gauge on regional business activity in October also supported demand.
The 10-year U.S. Treasury
British 10-year gilt yields
German 10-year bunds
The U.S. dollar retreated from a seven-month high as some investors took profit following a recent rally that received a boost on Friday by Yellen's comments and solid U.S. data.
(Editing by Nick Zieminski and Bernadette Baum)
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