US stock prices fell yesterday, with the Dow Jones industrial average and Standard & Poor’s 500 receding from their record highs, while the dollar fell from its 11-year peak versus a basket of currencies.
Investors are awaiting evidence the global economy is improving before adding to their equity holdings, analysts said.
A stronger-than-expected 2.9 per cent rise in German retail sales in January helped lift European shares near seven-year highs.
“The market is naturally settling in, taking a breather until the scales tip either way to commence the next move to continued to new heights or a consolidated pullback,” said Andre Bakhos, managing director at Janlyn Capital LLC in Bernardsville, New Jersey.
In early trading, the Dow Jones industrial average was down 76.39 points, or 0.42 per cent, at 18,212.24.
The Standard & Poor’s 500 Index was down 10.69 points, or 0.50 per cent, at 2,106.70.
The Nasdaq Composite Index was down 31.00 points, or 0.62 per cent, at 4,977.10.
On Monday, the Nasdaq broke above 5,000 mark for the first time in 15 years, while the Dow and S&P 500 set record closing highs.
The pan-European FTSEurofirst 300 index was off 0.4 per cent at 1,554.87, just off Monday’s seven-year high.
Tokyo’s Nikkei dipped 0.06 per cent as traders booked gains that propelled the index to 15-year highs on Monday.
The MSCI world equity index, which tracks shares in 45 nations, slipped 0.25 per cent, to 432.12.
The dollar retreated from an 11-year high against a group of six currencies as the greenback weakened against the yen after a top Japanese economic official said the dollar could not sustain more gains. The dollar index was last down 0.25 per cent at 95.214, while the greenback was down 0.35 per cent at 119.71 yen.
The euro softened against the dollar and yen as higher US and Japanese yields overshadowed the upbeat German retail sales and upcoming details on the European Central Bank’s €1.1 trillion bond purchase program. It was down 0.03 per cent at $1.1180 and 0.38 per cent lower at 133.79 yen.
With the impending start of the ECB’s effort to jumpstart the region’s economy, peripheral eurozone yields hovered near record lows.
US Treasuries were under pressure from higher-yielding corporate supply, led by a $21 billion deal from Actavis.
Oil rose more than $1 in choppy trading as fighting in Libya and signs of stronger global demand outweighed persistent concerns about a supply glut.
Brent crude was last up $1.61, or 2.7 per cent, at $61.15 a barrel.
US crude was last up 39 cents, or 0.79 per cent, at $49.99 per barrel.
Spot gold prices rose $4.90 to $1,211.55 an ounce.