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GLOBAL MARKETS-Stocks weak on China data, oil bounces after selloff

Published 14/10/2015, 02:57 am
© Reuters.  GLOBAL MARKETS-Stocks weak on China data, oil bounces after selloff
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* AB InBev wins over SABMiller after more than $100 bln offer

* Oil recovers from 5 pct slide; Treasuries rise

* Shares set to snap longest winning streak since February (Updates prices, changes comment, dateline from previous LONDON)

By Rodrigo Campos

NEW YORK, Oct 13 (Reuters) - A gauge of stocks in major markets fell on Tuesday for the first session in 10 after Chinese trade data reinforced views that the world's second-largest economy continues to lose momentum, but healthcare stocks kept Wall Street afloat.

U.S. crude and Brent futures rose after falling more than 5 percent in the previous session. Treasury prices rose.

China's exports fell less than expected in September but a sharper fall in imports left economists divided over whether the country's ailing trade sector is showing signs of turning around. The data was not enough to suggest a greater risk of a hard landing, but it did feed expectations that Beijing will cut interest rates again soon and announce other measures to avert a sharper economic slowdown. urn:newsml:reuters.com:*:nL3N12D1DA

In a sign there is still value to be found in equities, the world's two biggest brewers agreed to create a single company after AB InBev ABI.BR won over SABMiller SAB.L at its fifth attempt. The cash and share package is worth more than $100 billion. urn:newsml:reuters.com:*:nL8N12D0N7

Wall Street opened lower but quickly turned flat, led by healthcare as insurers advanced.

"There's no hawkish tone to monetary policy, you get a firmer commodity complex, that's helping markets stabilize and not follow the move in global markets overnight," said Art Hogan, chief market strategist at Wunderlich Securities in New York. "The other dynamic in place is you are catching a bid in healthcare."

St. Louis Federal Reserve President James Bullard, who opposed the decision to delay a rate hike when the Fed met in September, said on Tuesday the economic data since released is unlikely to convince other policymakers to increase rates when the Fed meets in two weeks. urn:newsml:reuters.com:*:nL1N12D10N

The Dow Jones industrial average .DJI rose 10.09 points, or 0.06 percent, to 17,141.95, the S&P 500 .SPX gained 0.61 points, or 0.03 percent, to 2,018.07 and the Nasdaq Composite .IXIC added 4.44 points, or 0.09 percent, to 4,843.08.

The MSCI world share index .MIWD00000PUS fell 0.5 percent, on track to end its longest winning streak since February.

The FTSEurofirst 300 index .FTEU3 was down 1 percent and MSCI's index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 1 percent overnight. Japan's Nikkei .N225 fell 1.1 percent. Emerging market stocks .MSCIEF fell 1.2 percent.

OIL BOUNCEBACK

Crude prices recovered some of the ground lost on Monday, when both Brent LCOc1 and WTI CLc1 fell 5 percent. U.S. crude added 1.4 percent to $47.78 per barrel while Brent rose 0.4 percent to $50.05 per barrel.

Safe-haven U.S. Treasuries prices rose after the Chinese data, while continued expectations for a later Fed rate liftoff also supported prices. urn:newsml:reuters.com:*:nL1N12D0ZX

"It's all a global growth fear trade," said Priya Misra, head of global rates strategy at TD Securities in New York. She said the Chinese data was the main catalyst behind the demand for safe-haven U.S. government debt.

U.S. 30-year Treasury bonds US30YT=RR were last up 16/32 in price to yield 2.9024 percent, from a yield of 2.928 percent late on Friday. Benchmark 10-year notes US10YT=RR were last up 9/32 to yield 2.0669 percent, from a yield of 2.099 percent late on Friday.

The U.S. bond market was closed on Monday.

The dollar's value against a basket of six major currencies .DXY dipped less than 0.1 percent after earlier touching its lowest in nearly a month. urn:newsml:reuters.com:*:nL8N12D2WY

The euro EUR= added 0.2 percent against the greenback at $1.1376 and the yen JPY= also strengthened 0.2 percent at 119.76 per dollar.

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