US stocks slipped from all-time highs yesterday, pulled lower by a sharp drop in crude oil prices, while European shares rallied to fresh seven-year highs on last week's conditional financial rescue for Greece.
Yields on low-rated eurozone government bonds fell on relief an agreement was reached late Friday as it eased concerns that Greece would leave the euro, even though it merely buys time for Athens to seek a long-term deal with Europe.
The Pan-European FTS-Eurofirst 300 index surged to highs last seen in December 2007 and Germany's DAX equity index set a record closing high, pushing gains so far this year to almost 14 per cent.
Britain's FTSE 100 index was the only major index in Europe to close lower, albeit slightly, after HSBC reported a 17 per cent drop in annual profit. The bank's shares fell 4.6 per cent.
Oil weakened on rising inventories, which have pressured crude prices and hit US energy shares, a major component of the US benchmark S&P 500 index.
The S&P 500 and the Dow industrials closed at all-time highs on Friday.
“What investors seem concerned with is that oil isn't finding a base,” said Rick Meckler, president of hedge fund LibertyView Capital Management LLC in Jersey City, New Jersey.
“Investors like stability, orderly rises and declines, and things like oil dropping by the types of moves it's been dropping and the volatility it creates is just a negative for some market participants,” he said.
On Wall Street, the Dow Jones industrial average was down 50.09 points, or 0.28 per cent, at 18,090.35. The Standard & Poor's 500 Index was down 4.80 points, or 0.23 per cent, at 2,105.50.
The Nasdaq Composite Index was down 4.89 points, or 0.10 per cent, at 4,951.07.
MSCI's all-country world index, a measure of stock performance in 46 countries, slipped 0.07 per cent, while the FTSEurofirst 300 index rose closed up 0.65 per cent at 1,535.08.
Brent crude fell $1.09 to $59.13 a barrel. Benchmark U.S. WTI crude for April delivery fell $1.58 to $49.23.
The dollar rose against most currencies as investors await Federal Reserve Chair Janet Yellen's testimony today to a Senate panel for clues on when the US central bank will boost interest rates.
The euro retreated on lingering doubts over whether the Greek accord will lead to a deal to keep Athens solvent.