* Wall Street closes little changed, Boeing drags on Dow
* US dollar drops on speculation Fed to stay mum on rates
* Weaker U.S. housing data helps spur safe-haven bonds
* Oil gains on weak dollar, supply disruptions in Nigeria
(Adds close of U.S. markets)
By Herbert Lash
NEW YORK, June 23 (Reuters) - Global stocks were flat on
Tuesday as U.S. housing data reinforced the view of a sluggish
recovery, while the U.S. dollar fell on speculation the
Federal Reserve may lower expectations of a rate increase.
Oil prices rebounded more than 2 percent as the dollar
eased and disruptions from Nigeria, a member of the
Organization of the Petroleum Exporting Countries, stoked
supply concerns.
Renewed dollar losses supported commodities denominated in
the greenback, pushing the benchmark Reuters-Jefferies CRB
Index of 19 commodity futures <.CRB> up 1.5 percent.
Investors awaited what Fed policy-makers say after their
two-day meeting ends on Wednesday. With no move on interest
rates expected, investors will focus on what the Fed says
about the economic outlook and its debt-buying program.
U.S. Treasury debt prices rose as exceptionally strong
demand for $40 billion of two-year notes came on top of the
housing data, which bolstered the view the economy's recovery
from its longest recession since the 1930s would be tepid.
Demand for the notes, as measured by the bid-to-cover
ratio, hit its highest in nearly two years, while a key gauge
of interest by foreigners and large institutional investors
was nearly twice its usual average.
"It's a recognition of a stagnating economy," said Jessica
Hoversen, fixed-income market analyst at MF Global Research in
Chicago.
"It's naive to wish a swift recovery, given this
unprecedented downturn. The consumer is still highly
deleveraged and companies are reluctant to hire," she said.
The National Association of Realtors said existing home
sales rose 2.4 percent in May to an annual rate of 4.77
million units. But NAR's chief economist said sales in some
areas appeared to be slowing and warned of the danger of a
"delayed" housing market recovery.
Banks, energy and materials helped the benchmark Standard
& Poor's 500 Index eke out a gain on Wall Street after the
three sectors led stocks sharply lower on Monday.
Another delay by Boeing Co <BA.N> for the first test
flight of its Dreamliner aircraft weighed on U.S. stocks and
made the company's stock the biggest drag on the Dow.
Boeing said the inaugural flight of its long-delayed 787
Dreamliner will be postponed so it can reinforce a section of
the aircraft. Boeing slid 6.5 percent. [])
The Dow Jones industrial average <> slipped 16.10
points, or 0.19 percent, to close at 8,322.91. The Standard &
Poor's 500 Index <.SPX> was up 2.06 points, or 0.23 percent,
at 895.10. The Nasdaq Composite Index <> was down 1.27
points, or 0.07 percent, at 1,764.92.
'MEDIOCRE' RECOVERY SEEN
European shares fell to their lowest close in nearly six
weeks, with financials suffering most, on renewed pessimism
about the economy.
The FTSEurofirst 300 <> index of top European shares
fell 0.4 percent to 833.67 points, the lowest close since May
13.
"Markets were discounting too sharp an economic recovery.
The pace of the recovery is going to be mediocre," said Bob
Parker, vice chairman of asset management at Credit Suisse.
Euro-zone government bond futures were little changed as
investors also awaited the results of a European Central Bank
tender of one-year funds.
Italian oil firm ENI declared force majeure on shipments
of Brass River crude oil from Nigeria. []
Persistent militant attacks over the past three years have
cut oil output in Nigeria, the world's eighth-biggest crude
exporter, to less than two-thirds of its installed capacity of
3 million barrels per day.
U.S. crude <CLc1> for August settled up $1.74 at $69.24 a
barrel. London Brent crude <LCOc1> gained $1.82 to settle at
$68.80 a barrel.
Gold futures rose after slipping to a six-week low earlier
in the session.
U.S. August gold futures <GCQ9> gained $3.30 to settle at
$924.30 an ounce in New York.
The benchmark 10-year U.S. Treasury note <US10YT=RR> was
up 15/32 in price to yield 3.63 percent. The 2-year U.S.
Treasury note <US2YT=RR> was up 2/32 in price to yield 1.11
percent.
The dollar fell against a basket of major currencies, with
the U.S. Dollar Index <.DXY> down 1.23 percent at 79.853.
The euro <EUR=> was up 1.55 percent at $1.4075, and
against the yen, the dollar <JPY=> was down 0.75 percent at
95.21.
Asian stocks tumbled overnight as confidence in the
recovery ebbed. Japan's Nikkei share average <> fell 2.8
percent to 9,549.61, and the MSCI index of Asia Pacific shares
outside Japan <.MIAPJ0000PUS> dropped 2.8 percent.
(Reporting by Leah Schnurr, Wanfeng Zhou, Burton Frierson in
New York; Naomi Tajitsu, Joe Brock, Brian Gorman, Rebekah
Curtis and Pratima Desai; writing by Herbert Lash; Editing by
Jan Paschal)
