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GLOBAL MARKETS-Wall Street pulls back from rally, oil prices rise

Published 04/11/2015, 03:13 am
Updated 04/11/2015, 03:20 am
© Reuters.  GLOBAL MARKETS-Wall Street pulls back from rally, oil prices rise
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* U.S. shares pull back from Monday's rally

* European shares wobble in and out of positive territory

* Oil rises but dogged by supply/demand worries

* Euro/Dollar wait for Fed, ECB clarity (Updates with U.S. market open, changes byline, dateline, previous dateline London)

By Sinead Carew

NEW YORK, Nov 3 (Reuters) - Wall Street shares pulled back from Monday's rally and the benchmark S&P 500 index flickered in and out of negative territory as a crude oil price rise boosted the energy sector while the healthcare and consumer staples sectors lagged.

European shares were also volatile, held back by engine problems at Volkswagen (DE:VOWG) VOWG_p.DE and Standard Chartered 's STAN.L announcement of a plan to cut jobs and raise $5.1 billion capital.

The Dow Jones Industrial Average .DJI was the strongest of the three major U.S. indexes, led by Visa Inc (N:V) V.N .

"This morning's action is natural, quiet consolidation. It's a digestion of yesterday's strength," said Andre Bakhos, managing director at Janlyn Capital in Bernardsville, New Jersey. The three top U.S. indexes had risen around 1 percent or more on Monday.

Around mid morning Tuesday the Dow Jones industrial average .DJI rose 62.53 points, or 0.35 percent, to 17,891.29, the S&P 500 .SPX gained 0.02 points, or 0 percent, to 2,104.07 and the Nasdaq Composite .IXIC dropped 2.05 points, or 0.04 percent, to 5,125.10.

New orders for U.S. factory goods fell for a second straight month in September as the manufacturing sector continued to struggle under the weight of a strong dollar and deep spending cuts by energy companies. The decline of 1.0 percent was bigger than economist forecasts for a 0.9 percent drop.

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Investors were still seeking clarity on the next move from the Federal Reserve and the European Central Bank. U.S. jobs data due on Friday is expected to be an influencer for the timing of a Fed rate hike.

"Clearly the December FOMC (Federal Open Market Committee)meeting is much more in the balance than we thought it was a couple of weeks ago," said Adam Cole, head of currency strategy at RBC Capital Markets.

Europe's FTSEurofirst .FTEU3 was last up 0.25 percent, but was dogged throughout the trading day by a slump in Standard Chartered shares and a drop in Volkswagen stock after its emissions test cheating scandal widened to include its luxury brands Porsche PSHG_p.DE and Audi.

Investors in Europe were also waiting for an appearance by European Central Bank President Mario Draghi, whose ECB is flagging more stimulus, at a normally low-key evening event in Frankfurt.

After falling Monday, the U.S. dollar .DXY was up 0.5 percent against a basket of major currencies while the euro fell 0.6 percent.

China helped bolster the mood in Asia as its President Xi Jinping was quoted by state media saying growth would be no less than 6.5 percent over the next five years.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS broke a five-day losing streak to rise 1.1 percent. Japan's Nikkei .N225 was closed for a public holiday.

In commodities, oil reversed the previous day's sell off but remained under pressure from a market supply glut and concerns about the demand outlook.

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Internationally traded Brent LCOc1 was up 78 cents at $49.57, while U.S. crude was up 88 cents at $47.03. Gold XAU= nudged down for a fifth straight day to $1,125.6 an ounce, while copper CMCU3 fell to $5,105.5 a tonne but was above the previous day's low.

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