GLOBAL MARKETS-Stocks retreat as oil price slumps on supply worry


* Oil dives almost 3 percent
    * Dow, S&P 500 retreat from record levels
    * Dudley, Rosengren comments lift U.S. dollar

 (Updates with U.S. market open, changes byline, dateline;
previous LONDON)
    By Chuck MikolajczakNEW YORK, June 20 (Reuters) - World stock markets lost
ground on Tuesday, pressured by a sharp  drop in oil prices to
their lowest in more than a year, while the U.S. dollar
strengthened on hawkish comments from U.S. Federal Reserve
    Brent crude touched its lowest level since April 2016 and
WTI hit its lowest since February 2016 following news of
increases in supply by several key producers. [O/R]
    That slide weighed down energy stocks on Wall Street and in
Europe. The S&P energy index dropped 1.9 percent as the worst
performing of the 11 major S&P sectors and Europe's oil & gas
sector slumped 2.1 percent.
    "What is amazing about this market is that we have been able
to make new all-time highs with energy basically back to what it
was doing in 2014 and 2015," said Marc Chaikin, chief executive
of Chaikin Analytics in Philadelphia.
    The Dow and benchmark S&P 500 had hit fresh records on
Monday, buoyed by a rebound in the tech sector.
    Chaikin sees the 2,450 level on the S&P 500 as a strong
resistance point the market is having difficulty climbing over,
"given that earnings season is over and we are just sort of
wavering between various stimuli."
    The Dow Jones Industrial Average <.DJI> fell 2.1 points, or
0.01 percent, to 21,526.89, the S&P 500 <.SPX> lost 7.26 points,
or 0.30 percent, to 2,446.2 and the Nasdaq Composite <.IXIC>
dropped 13.97 points, or 0.22 percent, to 6,225.05.
    The pan-European FTSEurofirst 300 index <.FTEU3> lost 0.43
percent and MSCI's gauge of stocks across the globe
<.MIWD00000PUS> shed 0.44 percent.
    U.S. crude <CLcv1> fell 2.99 percent to $42.88 per barrel
and Brent <LCOcv1> was last at $45.67, down 2.64 percent.
    The U.S. dollar strengthened for a second day as Federal
Reserve officials maintained a hawkish tone on hiking interest
    On Monday, New York Fed President William Dudley said
halting the rate-hiking cycle now would imperil the economy.
That was followed by Boston Fed President Eric Rosengren, who
said on Tuesday the era of low interest rates in the United
States and elsewhere poses financial stability risks.
    The dollar index <.DXY>, tracking the unit against other key
world currencies, rose 0.31 percent, with the euro <EUR=> down
0.22 percent to $1.1124. The greenback is up nearly 1 percent
for the month.
    Sterling <GBP=> was last trading at $1.261, down 0.96
percent on the day. Bank of England Governor Mark Carney doused
speculation that he might soon back higher interest rates,
telling bankers on Tuesday that he first wanted to see how the
economy coped with Brexit talks in coming months. [nL8N1JH1BB]
    Benchmark 10-year notes <US10YT=RR> last rose 6/32 in price
to yield 2.1687 percent, from 2.188 percent late on Monday.

Global assets in 2017     http://reut.rs/1WAiOSC
Global currencies vs. dollar     http://tmsnrt.rs/2egbfVh
Global bonds dashboard     http://tmsnrt.rs/2fPTds0
 (Editing by Bernadette Baum)
 ((charles.mikolajczak@tr.com; @ChuckMik; +1 646 223 5234;
Reuters Messaging:


This article appears in: Politics , Stocks , World Markets , US Markets

More from Reuters


See Reuters News

Research Brokers before you trade

Want to trade FX?