(Updates prices, comment; adds byline)
* Dollar slips while stocks are on the march
By Herbert Lash and Rodrigo Campos
NEW YORK, Aug 11 (Reuters) - A gauge of global equity
markets ended little changed on Tuesday, hamstrung by a late
sell-off on Wall Street prompted by mounting uncertainty about
more fiscal stimulus.
U.S. stocks retreated from near record highs after Senate
Majority Leader Mitch McConnell, a Republican, said there had
been no talks between the White House and House Democrats after
they stalled last week. Despite the sharp move in stocks, which had seen the S&P 500
brush against its record set in February, Treasury yields
climbed ahead of record 10-year supply and gold and silver
prices tumbled.
The dollar index got a late bid and ended higher for a
fourth straight session. The U.S. currency fell as much as half
a percent earlier on Tuesday but the late stimulus headlines
turned the air out of the euro rally and gave a boost to the
greenback.
The stronger dollar was no help for already battered
precious metals. Spot gold prices fell near 6%, the largest
one-day drop in over seven years and silver XAG= plunged over
15%, its largest daily drop in over a decade.
Spot gold XAU= last dropped 5.6% to $1,914.47 an ounce.
U.S. producer prices increased by the most in more than
1-1/2 years in July, and the Labor Department's producer price
index for final demand rose 0.6%, driven by a surge in portfolio
management fees and rising costs for gasoline. "We're sitting here close to the all-time highs in the S&P
500, so any potential negative headline like that can cause a
hiccup," said Michael O'Rourke, chief market strategist at
JonesTrading in Stamford, Connecticut.
Investors have been hoping Republicans and Democrats will
resolve their differences and agree on another relief program to
support about 30 million unemployed Americans.
MSCI's benchmark for global equity markets .MIWD00000PUS
rose 0% to 564.09, off less than 3% from its record, while
Europe's broad FTSEurofirst 300 index .FTEU3 closed up 1.64%
at 1,436.83.
On Wall Street, the Dow Jones Industrial Average .DJI fell
0.38%, the S&P 500 .SPX lost 0.80% and the Nasdaq Composite
.IXIC dropped 1.69%.
Russian President Vladimir Putin's announcement that Russia
had become the first country to grant regulatory approval to a
COVID-19 vaccine after less than two months of human testing
aided sentiment, some analysts said. Benchmark 10-year notes US10YT=RR last fell 20/32 in price
to yield 0.6382%, from 0.574% late on Monday.
The dollar strengthened after the late stimulus headlines.
The euro EUR= rose 0.03%, to $1.1739. The dollar index
=USD rose 0.037%, and the Japanese yen weakened 0.51% versus
the greenback at 106.50 per dollar.
U.S. crude CLc1 recently fell 0.64% to $41.67 per barrel
and Brent LCOc1 was at $44.63, down 0.8% on the day.
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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
German vs US real yields https://tmsnrt.rs/2PEuXdm
World stocks market cap https://tmsnrt.rs/2XO8NtE
Daily percent change: spot gold, silver https://tmsnrt.rs/31HFji7
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