GLOBAL MARKETS-World stocks dip after new highs, dollar falls

(Adds close of U.S. markets)
* S&P 500, Dow, MSCI ACWI hit fresh highs
* Bond yields near three-week lows
* Bitcoin hits record high, dollar weakens

By Herbert Lash and Tom Arnold
NEW YORK/LONDON, April 14 (Reuters) - Major global stock
indexes scaled new peaks on Wednesday before shedding gains that
anticipated a strong recovery from the coronavirus pandemic,
while the dollar dipped to three-week lows as Treasury yields
held below recent highs.
High-flying growth stocks declined on Wall Street, sending
the benchmark S&P 500 .SPX and Nasdaq .IXIC lower, while
underpriced value stocks rose, lifting the Dow .DJI to a new
record.
U.S. import prices increased more than expected in March,
fueled by higher costs for petroleum products and tight supply
chains in the latest data to show inflation heating up as
economies reopen. U.S. Treasury yields ticked up in early trade on the import
data after tumbling on Tuesday when the U.S. consumer price
index showed that while underlying inflation jumped in March, it
was not surging as some had feared, allowing risk assets to
rise.
Results from JPMorgan Chase & Co JPM.N and Goldman Sachs
Group Inc GS.N also suggest high cash reserves and a lack of
strong loan demand will not spur inflation, giving equities
further room to run, said Jack Janasiewicz, a portfolio
strategist at Natixis Advisors in Boston.
"What's the corporate use of that money? Well, it's loan
demand. We're simply not seeing that," Janasiewicz said. "If
you're going to be in that inflation camp you want to see people
using money and we're certainly not seeing that right now."
High corporate debt issuance and accommodative government
policies will push money into risk assets and lift prices, he
said. U.S. companies have more cash on hand than they did before
the pandemic, according to S&P Dow Jones Indices.
In Europe, upbeat earnings from German software firm SAP
SAPG.DE and French luxury goods maker LVMH LVMH.PA helped
the pan-regional STOXX 600 index .STOXX close up slightly to
just below a record high set last week.
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
0.02% after hitting a new peak, as did the benchmark S&P 500
.SPX before it retreated, closing down 0.41%. The tech-heavy
Nasdaq Composite .IXIC dropped 0.99% and the Dow Jones
Industrial Average .DJI added 0.16%.
The Russell 1000 Value index .RLV rose 0.3% as the Russell
1000 Growth index .RLG fell 1.1%, led by the big technology
companies whose large weight on the MSCI benchmark pulled it
lower.
"It's a day for cyclicals. That's where the strength is. The
little bit of selling we're seeing is in tech plus," said Tim
Ghriskey, chief investment strategist at Inverness Counsel.
Germany's DAX index .GDAXI ended down 0.2%. Economic
institutes will cut their joint 2021 growth forecast for
Europe's largest economy to 3.7% from 4.7%, sources said, due to
a longer-than-expected COVID-19 lockdown. Overnight most Asia-Pacific share indexes also climbed, led
by Hong Kong's Hang Seng .HSI . The Nikkei .N225 fell 0.4% as
rising coronavirus cases raised doubts about Japan's economic
recovery with 100 days to go before Tokyo hosts the Olympics.
The New Zealand dollar rose to a three-week high of $0.7122
NZD=D3 after the country's central bank, as expected, held its
official interest rate and asset purchase program steady.
Bitcoin touched a record high of $64,895 BTC=BTSP ahead of
the listing of cryptocurrency platform Coinbase Global Inc
COIN.O on Nasdaq. Coinbase was valued at almost $100 billion
in a Nasdaq debut that marked another milestone in the
development of bitcoin and other digital assets. U.S. Federal Reserve Chairman Jerome Powell said in remarks
at the Economic Club of Washington it was highly unlikely the
central bank would raise interest rates before the end of 2022.
The U.S. recovery accelerated to a moderate pace from late
February to early April as consumers, buoyed by increased
COVID-19 vaccinations and strong fiscal support, spent more on
travel and other items, the Fed said in its latest "Beige Book"
collection of anecdotes about the economy. Benchmark 10-year notes US10YT=RR rose 1.3 basis points to
yield 1.6359%. A spate of strong auction results this week has
also helped to tame yields. US/
Euro zone bond yields, which had been rising in line with
U.S. Treasury yields on hopes for a strong economic recovery
later this year and increased inflation, on Wednesday dropped 1
to 3 basis points. The dollar index =USD fell 0.162%, with the euro EUR= up
0.27% at $1.1978. The Japanese yen strengthened 0.15% versus the
greenback at 108.90 per dollar.
Oil prices surged almost 5% after a report from the
International Energy Agency followed by U.S. inventory data
boosted optimism about a rebound in demand.
U.S. crude futures CLc1 rose $2.97 to settle at $63.15 a
barrel, while Brent crude futures LCOc1 settled up $2.91 at
$66.58 a barrel.
U.S. gold futures GCv1 settled down 0.6% at $1,736.30 an
ounce.

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