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GLOBAL MARKETS-Corporate results weigh on shares, dollar cuts losses

Published 24/07/2015, 01:56 am
© Reuters.  GLOBAL MARKETS-Corporate results weigh on shares, dollar cuts losses
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(Adds U.S. trading, latest prices, and changes byline and dateline; previous LONDON)

* Record-low U.S. jobless claims narrow dollar losses

* Treasury yields rise

* Gold lifted by softer dollar

By Michael Connor

NEW YORK, July 23 (Reuters) - Disappointing earnings results from corporate bellwethers weighed on equity prices in Europe and on Wall Street on Thursday, while strong U.S. labor market data helped the dollar narrow losses.

Gold got a lift from the softer dollar and backed away from five-year lows to briefly trade above $1,100 an ounce, while oil prices held steady.

Coming off a two-day dip, U.S. stock indexes were mixed. The Dow Jones industrial average .DJI fell 38.28 points, or 0.21 percent, to 17,812.76, the S&P 500 .SPX declined 1.81 points, or 0.09 percent, to 2,112.34 and the Nasdaq Composite .IXIC added 17.03 points, or 0.33 percent, to 5,188.80. ID:nL3N10355P

Caterpillar shares CAT.N fell as much as 3.4 percent to a four-year low of $77.03 after the world's largest construction and mining equipment maker reported sales declines in key markets in a sluggish global economy. ID:nL1N1030X9

American Express AXP.N fell 2.8 percent to $77.75 as revenue missed expectations, while 3M MMM.N was down 2.5 percent at $151.44 after the diversified manufacturer cut its full-year forecast.

"Companies such as Caterpillar are a litmus test for the global economy, especially when the market is concerned about China's economy," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.

European equities fell .FTEU3 in late trading after disappointing updates from companies including Aberdeen Asset Management ADN.L and British energy supplier SSE SSE.L . ID:nL5N1033ZW

In currency markets, the euro briefly traded above $1.10 for the first time in a week, as the Greek parliament signed off on reforms needed to start negotiations with lenders in a bid to avert bankruptcy.

The dollar index .DXY pared earlier losses on news that U.S. weekly jobless claims fell to their lowest level in more than four decades. It was last off 0.40 percent. The data made rate hikes by the Federal Reserve appear more likely. ID:nL1N10317J

The euro EUR= was last up 0.4 percent against the dollar at $1.0976 and 0.55 percent against the yen at 136.12 yen EURJPY= . ID:nL5N1033I7

U.S. Treasury debt yields were higher, as prices eased after the weekly jobless claims report. Benchmark 10-year Treasury notes US10YT=RR were down 2/32 in price to yield 2.329 percent, from a yield of 2.325 percent late Wednesday. ID:nL1N1031IN

Worries over demand for commodities from markets such as China and the impact of an expected U.S. interest rate hike on emerging market capital flows have taken the shine off global markets even as fears over Greece recede.

Commodities markets were steady, with U.S. oil CLc1 off 20 cents to $49.01 per barrel and Brent crude LCOc1 flat at $56.20. Rising U.S. stockpiles and a strong dollar have been a drag on oil prices. ID:nL5N103478

In metals, gold edged up from a five-year low, though bearish investors were still hovering. Gold XAU= was last near flat at $1094.30 an ounce. ID:nL3N10336T

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