* Wall St dragged lower after disappointing Dell results
* Oil falls under $77 barrel on dollar rise, equity slide
* U.S. dollar advances as traders trim risk exposure
* Bonds slip slightly on safe-haven flows
(Updates with U.S. markets, changes byline, dateline
previously LONDON)
By Herbert Lash
NEW YORK, Nov 20 (Reuters) - Global stocks fell and the
dollar rose for a second straight session on Friday as
investors cut their exposure to risky assets amid concerns
about the economic outlook worldwide.
Investors turned to safe havens ahead of a
holiday-shortened week in the United States and in anticipation
of an often volatile year-end period.
Oil fell below $77, weighed by the stronger dollar, and
falling stock prices raised concern about the economy and the
outlook for energy demand. For details: []
Short-dated U.S. Treasury debt prices rallied earlier in
the session, before trimming gains, and investors in Europe
sold higher-yielding euro zone government bonds as they sought
the safety of benchmark German Bunds. []
Equity markets around the world fell as investors took
profits as the end of the year approaches.
"It's been a very good year for a lot of people, and it
makes sense that players are going to square up positions today
ahead of the U.S. holiday and month-end," said Michael
Woolfolk, strategist at BNY Mellon in New York.
U.S. markets will be shut next Thursday for the
Thanksgiving holiday, while Monday marks a national holiday in
Japan.
Worse-than-expected quarterly results from computer maker
Dell Inc <DELL.O> and homebuilder D.R. Horton <DHI.N> helped
push U.S. stocks lower in the third straight negative session
for Wall Street. []
A decline in technology shares is problematic, and "not a
sign of a healthy market," said Quincy Krosby, market
strategist at Prudential Financial in Shelton, Connecticut.
"We're not writing the obituary for this market, but it is
consolidating, getting far more careful. It is prudent to take
some money and some risk off the table," Krosby said.
At 1 p.m., the Dow Jones industrial average <> was down
48.51 points, or 0.47 percent, at 10,283.93. The Standard &
Poor's 500 Index <.SPX> was down 7.19 points, or 0.66 percent,
at 1,087.71. The Nasdaq Composite Index <> was down 18.45
points, or 0.86 percent, at 2,138.37.
An absence of fresh economic news made many markets choppy.
Investors reacted to a wave of speculation about the risk of a
default on Ukraine's sovereign and sovereign-guaranteed debt,
despite no new development to trigger the sudden fright.
[]
European equities slipped for a fourth session to a
two-week closing low as financials lost ground on concerns over
some banks' exposure to Ukrainian debt, while weaker crude oil
prices hurt energy shares. []
The FTSEurofirst 300 <> index of top European shares
ended down 0.8 percent at 1,002.95 points.
Gold slipped in Europe as the dollar firmed, dampening
momentum that has lifted prices more than 9 percent this month
after reports of central bank purchases of gold, including 200
tonnes by India. []
Spot gold prices <XAU=> fell 60 cents to $1143.10 after
earlier in the week touching a record $1,152.75 an ounce.
The dollar was up against a basket of major currencies,
with the U.S. Dollar Index <.DXY> up 0.53 percent at 75.692.
The euro <EUR=> was down 0.49 percent at $1.4845. Against
the yen, the dollar <JPY=> was down 0.07 percent at 88.97.
The dollar is down some 14 percent since mid-March as signs
of a global recovery prompted investors to favor higher-yield
currencies and assets. Expectations for record low U.S.
interest rates well into 2010 have also hurt the greenback.
Commodity prices also fell as investors have scoured
economic data for signs of a recovery that would boost global
energy demand.
"Oil is clearly still tied to broader financial markets and
seeing losses due to a stronger dollar and a drop in stock
prices," said Gene McGillian, analyst at Tradition Energy in
Stamford, Connecticut.
U.S. light sweet crude oil <CLc1> fell 69 cents, or 0.89
percent, to $76.77 per barrel, and spot gold prices <XAU=>
fell 60 cents, or 0.05 percent, to $1143.10.
The 2-year U.S. Treasury note <US2YT=RR> was down 1/32 in
price to yield 0.71 percent. The benchmark 10-year U.S.
Treasury note <US10YT=RR> was down 2/32 in price to yield 3.35
percent.
The MSCI index of Asia Pacific stocks traded outside Japan
<.MIAPJ0000PUS> fell 0.7 percent, and Japan's Nikkei index
<> slid 0.5 percent.
(Reporting by Rodrigo Campos, Steven C. Johnson, Edward
McAllister and Emily Flitter in New York; Ian Chua, Jan Harvey
and Atul Prakash in London; writing by Herbert Lash; Editing by
Leslie Adler)
