Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

GLOBAL MARKETS-World stocks slip; euro retreats on debt worries

Published 05/13/2011, 12:06 PM
Updated 05/13/2011, 12:08 PM

* MSCI world equity index slips, Wall Street down

* Oil prices retreat as U.S. dollar strengthens

* Euro reverses gains versus dollar, eyes on Greece (Updates prices, adds details, comments)

By Wanfeng Zhou

NEW YORK, May 13 (Reuters) - Major stock markets fell on Friday after data showed U.S. inflation hit the highest level in 2-1/2 years, while the euro slipped against the dollar as investors refocused on Europe's debt problems ahead of meetings by finance officials next week.

The rise in the dollar dragged down crude oil prices, reversing earlier gains that had been fueled by stronger-than-expected economic growth data from Germany and France.

U.S. consumer prices increased 0.4 percent in April from March after rising 0.5 percent in March. The rise, which was in line with economists' expectations, took the year-on-year inflation reading to 3.2 percent, the highest since October 2008. For details, see [ID:nN13186747]

"CPI was right in line, net benign, but people are concerned we're still going to have to deal with inflation," said Ken Polcari, managing director at ICAP Equities in New York. "People are going to take advantage and reallocate some assets, build a more defensive type portfolio."

World stocks, as measured by the MSCI world equity index <.MIWD00000PUS>, fell 0.6 percent to 344.39 on the day, not far from a three-week low set on Thursday. Thomson Reuters global stock index <.TRXFLDGLPU> dropped 0.6 percent.

The Dow Jones industrial average <.DJI> dipped 74.97 points, or 0.59 percent, to 12,619.14. The Standard & Poor's 500 Index <.SPX> edged down 7.88 points, or 0.60 percent, to 1,340.60. The Nasdaq Composite Index <.IXIC> lost 22.02 points, or 0.76 percent, to 2,841.16.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The pan-European FTSEurofirst 300 <.FTEU3> index of top shares was down 0.4 percent at 1,140.07 points. Emerging stocks <.MSCIEF> lost 0.3 percent.

The euro traded down against the dollar, as investors' anxiety increased ahead of meetings that could provide further direction to the single currency [ID:nLDE66D1JB]. The euro is likely to remain pressured until at least after investors digest any outcome.

The euro fell 0.5 percent to $1.4169

Concerns that Greece won't repay private bondholders in full have contributed to the currency shedding roughly 5 percent from a peak near $1.4940 hit in early May.

A Eurogroup meeting of euro zone finance ministers is due to be held on Monday, followed on Tuesday by a meeting of European Union finance ministers. [ID:nLDE66D1JB]

There are doubts whether a substantial agreement to help Greece manage its debts is likely to emerge from the meetings, keeping uncertainty high over how long the country can avoid a restructuring and making some investors reluctant to load up too much on risky assets, analysts said.

"Ahead of event risk, we're getting some anxiety ahead of the weekend," said Jessica Hoversen, foreign exchange and fixed income analyst at MF Global in New York. "It's risk off, which is unfortunately simplistic but seems to explain the movements of all the markets lately."

In commodities markets, U.S. crude oil was down 1 percent at $97.93, while Brent crude was off 0.39 percent at $112.54 (Editing by Leslie Adler)

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.