World shares pare gains on U.S. data, oil rises on China

NEW YORK Mon Dec 3, 2012 10:56pm IST

Traders work on the floor of the New York Stock Exchange, December 3, 2012. REUTERS/Brendan McDermid

Traders work on the floor of the New York Stock Exchange, December 3, 2012.

Credit: Reuters/Brendan McDermid

Related Topics

A statue of Ganesh, the deity of prosperity, is carried in a taxi to a place of worship on the first day of the ten-day-long Ganesh Chaturthi festival in Mumbai August 29, 2014. REUTERS/Danish Siddiqui

Ganesh Chaturthi Festival

During Ganesh Chaturthi idols will be taken through the streets in a procession accompanied by dancing and singing, and will be immersed in a river or the sea in accordance with Hindu faith.  Slideshow 

NEW YORK (Reuters) - Global shares and crude oil pared gains on Monday after U.S. manufacturing activity hit a three-year low in November, offsetting signs of revived growth in China.

Wall Street opened higher, following gains in European equity markets on upbeat factory data from China and a slower contraction in European manufacturing. But U.S. shares subsequently trimmed gains to trade near break-even.

The euro leaped to its highest level against the U.S. dollar in six weeks as concerns abated about debt-burdened Greece and Spain while Chinese data allayed worries about global growth.

But concerns over budget dealings in Washington over the "fiscal cliff" remained the primary focus of investors.

"At this point, all you can say about the data is they are discounting it," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont. "So barring some catastrophe here in terms of the fiscal cliff, we look pretty stable."

In a sign U.S. manufacturing may be struggling to gain traction, the Institute for Supply Management said its index of national factory activity fell to 49.5 from 51.7 in October. The figure was the softest since July 2009, when the U.S. economy was struggling in the aftermath of the financial crisis and may have been affected by superstorm Sandy, which hit the U.S. East Coast in late October.

The Dow Jones industrial average was down 11.71 points, or 0.09 percent, at 13,013.87. The Standard & Poor's 500 Index was up 0.78 points, or 0.06 percent, at 1,416.96. The Nasdaq Composite Index was up 4.66 points, or 0.15 percent, at 3,014.90.

European shares gave up most of their gains after hitting a 17-month high, pulled lower by the U.S. manufacturing data and concerns about the U.S. "fiscal cliff" hurting sentiment.

The FTSEurofirst 300 index of top European shares closed a provisional 0.18 percent higher at 1,121.38, after earlier rising to 1,128.65, its highest level in 17 months.

But world shares as measured by MSCI's all-country world equity index were up 0.1 percent at 333.00.

The euro was up 0.58 percent at $1.3061, while the U.S. dollar index fell 0.37 percent to 79.856.

Copper touched a six-week high on the promising data from China, the world's top metals consumer. But doubts about the soundness of the global economy put a lid on gains.

Benchmark copper on the London Metal Exchange hit $8,045 a tonne, the highest since October 19, before receding to $8,015.50, up 0.26 percent.

U.S. Treasuries prices fell on news that Spain is seeking help for its troubled banks and the Chinese manufacturing data reduced safe-haven demand for less-risky government debt.

"You got the Spain news which was expected but it was still welcomed news for risky assets. You also had some pretty good Chinese data. The (bond) market is a little fatigued," said Jason Rogan, director of Treasuries trading at Guggenheim Partners in New York.

The benchmark 10-year U.S. Treasury note was down 5/32 in price to yield 1.6301 percent.

Oil rose above $112 per barrel, spurred by signs that growth is picking up in China, before trimming gains, with North Sea Brent turning negative.

Brent futures were off 13 cents at $111.10 per barrel. U.S. crude rose 32 cents to $89.23 per barrel.

(Additional reporting by Richard Hubbard; Reporting by Herbert Lash; Editing by Dan Grebler)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Market Eye

REUTERS SHOWCASE

HSBC PMI

HSBC PMI

Factory activity expands at slower clip in August.  Full Article 

Modi in Japan

Modi in Japan

Japan aims to double India investment in 5 years - Nikkei  Full Article 

Market Outlook

Market Outlook

Indian shares headed for correction, but outlook strong - BofA Merrill.  Full Article 

India Infrastructure

India Infrastructure

RBI rule handicaps India's infrastructure hopes  Full Article 

Book Talk

Book Talk

Reema Abbasi and a glimpse of Pakistan’s Hindu past  Full Article 

China Economy

China Economy

Retreat in China's PMIs heightens calls for policy easing.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage