Reuters: US Dollar Report: GLOBAL MARKETS-Stocks slip on growth worries, bonds rise

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GLOBAL MARKETS-Stocks slip on growth worries, bonds rise Mar 23rd 2012, 14:43 Fri Mar 23, 2012 10:43am EDT * Decline in U.S. new home sales puts damper on enthusiasm * Euro gains, dollar falls after housing data * U.S. government debt rises for fourth day By Herbert Lash NEW YORK, March 23 (Reuters) - World stocks drifted lower on Friday, pulled down by a decline in U.S. home sales as concerns about global growth cooled enthusiasm. Commodity prices ticked higher on the belief the prior day's sell-off in risk assets was overdone. The Commerce Department said sales of new single-family homes slipped 1.6 percent in February to a seasonally adjusted 313,000-unit annual rate. January's sales pace was revised down to 318,000 units from the previously reported 321,000 units. U.S. government debt prices rose for the fourth day in a row, reversing more of last week's losses, as concerns about the economic picture in China and Europe competed with improved U.S. employment for investors' attention. The benchmark 10-year U.S. Treasury note was up 18/32 in price to yield 2.21 percent. Wall Street opened mixed, but then fell on the U.S. home sales. European and global stock indices were lower. The belief that equity markets have gained to much in too short a time has dampened investor sentiment. The benchmark S&P 500, on track for its first weekly decline in six weeks, has gained more than 10 percent so far this year and almost 30 percent since its October lows. "We are all looking for a correction in the markets and that is what we are getting at the moment," said Frank Lesh, a futures analyst and broker at FuturePath Trading LLC in Chicago. "It's not a deep and serious correction, but we were a bit overbought and we could just move sideways to slightly lower to correct that, and it appears that is what we are doing." The Dow Jones industrial average was down 11.24 points, or 0.09 percent, at 13,034.90. The Standard & Poor's 500 Index was down 1.68 points, or 0.12 percent, at 1,391.10. The Nasdaq Composite Index was down 13.33 points, or 0.44 percent, at 3,049.99. The MSCI world equity index was off 0.1 percent, while a measure of top European stocks lost 0.8 percent and emerging markets fell 0.5 percent. The dollar has been supported by an improving U.S. economic landscape that contrasts with the euro zone, where most economies are either teetering on the brink of or in recession. The euro was up 0.37 percent at $1.3245, and the U.S. Dollar Index down 0.36 percent at 79.448. The relationship between risk appetite and the dollar has become more complicated, according to Chris Fernandes, vice president, senior foreign exchange adviser for the capital markets division at Bank of the West in San Ramon, California. "Whereas in the past the dollar would tend to fall as risk appetite was rising, the dollar is now benefiting from pro-risk developments, as U.S. economic data has generally bested expectations recently," he said. Brent oil was up $1.84 at $124.98 a barrel, underpinned by worries that military conflict with Iran will hit supplies and create an oil price spike. U.S. light sweet crude oil rose $1.30 to $106.65 a barrel. The Reuters/Jefferies CRB Index of leading commodity prices was up 0.6 percent at 314.04. Link this Share this Digg this Email Reprints

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