Global equity markets eased yesterday after a cut in Chinese interest rates initially kept shares near record highs, but a lack in progress in resolving Greece’s financial woes weighed on stocks and weakened the euro against the dollar.
Gains by mining stocks helped to support some European equities after the rate cut in China, the world’s biggest consumer of copper and other metals.
But signs that US shale oil production was recovering sent oil prices lower and made energy the biggest losing sector on the benchmark S&P 500.
A strong jobs report on Friday that showed the US economy was picking up steam and helped boost Wall Street by more than one per cent was old news by Monday, with investors again looking at the potential implications of a Greek exit from the eurozone.
Greek bond yields edged up as eurozone finance ministers met in Brussels to discuss a cash-for-reforms deal with Athens, which faces the first in a series of large debt repayments this week.
MSCI’s all-country world index of stock performance in 46 countries fell 0.03 per cent, while key UK, German and French national stock indexes were lower. The pan-European FTSEurofirst 300 index rose 0.38 per cent to 1,596.79 points, lifted by financial stocks.
On Wall Street, the Dow Jones industrial average fell 35.16 points, or 0.19 per cent, to 18,155.95.
The S&P 500 slid 3.76 points, or 0.18 per cent, to 2,112.34 and the Nasdaq Composite lost 3.43 points, or 0.07 per cent, to 5,000.12.
The US dollar rose against the euro on renewed worries over a Greek exit from the eurozone.
The euro fell 0.35 per cent to $1.1164, while the dollar rose 0.15 per cent to 94.944 against a basket of six currencies. Against the yen, the greenback gained 0.13 per cent to 119.94.
Benchmark 10-year Treasuries were last down 17/32 in price to yield 2.2109 per cent. German 10-year note yields rose eight basis points to 0.598 per cent.
Oil slipped towards $65 a barrel on signs that US shale oil production was recovering after a recent price rally renewed concerns of a growing global supply glut.
Brent crude for June was down 64 cents at $64.75 a barrel. US light crude for June delivery fell 25 cents to $59.14 a barrel.