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GLOBAL MARKETS-Stocks retreat as gains in Europe fade; dollar dips

Published 01/08/2017, 01:24 am
Updated 01/08/2017, 01:30 am
© Reuters.  GLOBAL MARKETS-Stocks retreat as gains in Europe fade; dollar dips
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* Banks, miners lift Europe shares; Wall St flat

* China data helps push copper to two-year high

* Dollar dips to stay near 13-month lows (Updates with U.S. market open, changes byline, dateline; previous LONDON)

By Chuck Mikolajczak

NEW YORK, July 31 (Reuters) - A gauge of world stocks was little changed on Monday, as an advance in European shares faded and U.S. equities dipped, while the U.S. dollar slipping to near 13-month lows against other major currencies.

European shares initially saw a boost from gains in HSBC, as Europe's biggest bank unveiled a 5-percent rise in profits in the first six months of this year and its third share buyback in a year, underlining progress in its turnaround plan. shares HSBA.L 0005.HK gained nearly 4 percent in London trading and were last up 1.7 percent.

On Wall Street, banks were also a bright spot, with the S&P financial index .SPSY up 0.43 percent as the best performing of the 11 major sectors, although equities overall lost some ground.

Mining companies in London received a boost, with an index of their shares .SXPP up 0.42 percent as copper hit a fresh two-year high after Chinese data showed that while manufacturing growth cooled slightly this month, a government infrastructure push kept construction moving. credit markets are actually curtailing issuance and defaults are down," said Jack Ablin, chief investment officer at BMO Private Bank in Chicago.

"So perhaps they are able to execute that reduced reliance on credit and still grow their economy."

Copper CMCU3 rose 0.70 percent to $6,369.50 a tonne, having risen as high as $6,430.

The pan-European FTSEurofirst 300 index .FTEU3 lost 0.08 percent and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.04 percent.

The Dow Jones Industrial Average .DJI rose 60.78 points, or 0.28 percent, to 21,891.09, the S&P 500 .SPX lost 2.35 points, or 0.10 percent, to 2,469.75 and the Nasdaq Composite .IXIC dropped 27.21 points, or 0.43 percent, to 6,347.47.

Shares of tobacco companies continued to weigh, after the U.S. Food and Drug Administration proposed on Friday to cut nicotine in cigarettes to non-addictive levels. American Tobacco BATS.L fell 4.2 percent, after dropping 6.8 percent on Friday, and Imperial Brands IMB.L fell 5.8 percent. In the U.S., Altria Group (NYSE:MO) MO.N , off 3.1 and Philip Morris PM.N , down 1.2 were among the top drags on the S&P 500.

The dollar index .DXY fell 0.14 percent, with the euro EUR= up 0.33 percent to $1.1789.

Benchmark 10-year notes US10YT=RR last fell 2/32 in price to yield 2.2942 percent, from 2.287 percent late on Friday ahead of a heavy week of data, which will culminate in Friday's employment report for July. prices retreated after hitting two-month highs. Oil earlier climbed as news of a producers' meeting next week added to bullish sentiment driven by the threat of U.S. sanctions against OPEC-member Venezuela. crude CLcv1 fell 0.84 percent to $49.29 per barrel and Brent LCOcv1 was last at $51.89, down 0.63 percent on the day.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Global assets in 2017

http://reut.rs/1WAiOSC Global currencies vs. dollar

http://tmsnrt.rs/2egbfVh Global bonds dashboard

http://tmsnrt.rs/2fPTds0 Emerging markets in 2017

http://tmsnrt.rs/2ihRugV

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