(Adds close of U.S. markets)
* Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
By Herbert Lash
NEW YORK, March 30 (Reuters) - The dollar rose and a gauge
of global equity markets slipped on Tuesday as rising U.S.
Treasury yields dampened the appeal of big U.S. tech stocks and
led investors on both sides of the Atlantic to shares that stand
to benefit as economies re-open.
The stronger dollar and rising yields, along with
expectations of a strong recovery, sapped demand for safe-haven
bullion and pushed gold prices lower.
European shares advanced to near-record highs on hopes of a
vaccine-driven recovery as investors looked past the fallout of
U.S. hedge fund Archegos' default, which slammed Credit Suisse
and Nomura shares hard on Monday.
The STOXX 600 index .STOXX gained 0.7%, putting the
pan-European index less than 1% from its pre-pandemic peak,
while bank and mining stocks pushed the blue-chip FTSE 100 index
.FTSE in London to close 0.5% higher.
Microsoft Corp MSFT.O , Apple Inc AAPL.O , Amazon.com Inc
AMZN.O and Facebook Inc FB.O led the S&P lower, while Tesla
Inc TSLA.O , JPMorgan & Co. JPM.N , Bank of America BAC.N
and Wells Fargo & Co. WFC.N were the top advancing stocks.
The playbook of the past month was for the most part evident
in Tuesday's session, said Michael James, managing director of
equity trading at Wedbush Securities in Los Angeles.
"When rates are higher you tend to see financials act better
and the large-cap tech stocks tend to be for sale. They have a
problem making headway," James said.
"Look at Apple, Facebook, Amazon, Microsoft, they're all
lagging in a meaningful way today," he said.
Microsoft fell 1.44%, with Apple down 1.23%, 0.97% and
0.66%.
The Nasdaq tried to edge higher shortly before the market
close as the yield on the benchmark 10-year Treasury note shed 6
basis points from 14-month highs to end slightly lower at
1.714%.
While the major U.S. equity indexes fell, advancing shares
outnumbered declining issues by more than 1.4:1, a sign of the
impact big tech has on Wall Street and MSCI's benchmark for
global equity markets.
The MSCI all-country world index .MIWD00000PUS fell 0.11%
to 672.08, while its index for emerging markets stocks .MSCIEF
rose 0.71% as travel-related stocks lifted Brazil's Bovespa
index.
The Dow Jones Industrial Average .DJI fell 0.31%. The S&P
500 .SPX slid 0.32% and the Nasdaq Composite .IXIC slipped
0.11%.
Bets on a speedy economic recovery driven by the vaccine
rollout and unprecedented stimulus lifted the S&P 500 and the
Dow to record closing highs last week.
The dollar climbed to a one-year high against the yen and
rose against major currencies on the increasing distribution of
U.S. vaccines and President Joe Biden's plans to spend up to $4
trillion on infrastructure. Biden is expected to announce his plan on Wednesday in
Pittsburgh, details of which spurred yields higher on concerns
the spending could push up the government deficit.
The 10-year Treasury yielding 1.7% is not the harbinger of a
bad economy, said Jason Pride, chief investment office for
private wealth at Glenmede in Philadelphia. But there are
concerns that inflation may be on the horizon, he said.
"Now we're starting to see the concerns of what comes after
you have an economy recovering and you're injecting all this
fiscal stimulus," he said. "Does that mean the Fed has to raise
rates to slow things down? The answer to that is 'kind of.'"
The dollar index =USD rose 0.423%, with the euro EUR=
down 0.4% to $1.1715. The Japanese yen JPY= weakened 0.49%
versus the greenback at 110.34 per dollar.
The rally in European shares and signs of a pick-up in
inflation in big euro zone economies weighed on euro-area bonds,
pushing 10-year yields up 4 to 5 basis points across the board.
U.S. gold futures GCv1 settled down 1.7% at $1,686 an
ounce. Spot gold XAU= fell 1.72% to $1,682.58.
Oil prices slid as the Suez Canal reopened to traffic, while
focus turned to an OPEC+ meeting this week that analysts expect
will approve an extension to supply curbs amid disappointing
demand prospects.
Brent crude futures LCOc1 slid 84 cents to settle at
$64.14 a barrel, while U.S. crude futures CLc1 settled down
$1.01 at $60.55 a barrel.
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Emerging markets http://tmsnrt.rs/2ihRugV
Global asset performance http://tmsnrt.rs/2yaDPgn
Global asset performance https://tmsnrt.rs/3cAPkVi
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