* Wall Street closes lower as oil drags energy sector down
* Euro falls to one-week low on political risk
* Oil prices sink amid ample U.S. supply
* Gold touches November high while dollar pares gains
* Graphic: World FX rates in 2017 tmsnrt.rs/2egbfVh
(Updates with U.S. markets close, quotes)
By Hilary Russ
NEW YORK, Feb 6 U.S. stocks fell on Monday, led
lower by the energy sector as oil prices slumped, following
European shares and the euro downward on global political
Investors are awaiting more details on President Donald
Trump's economic policies, while concern lingers over French
politics ahead of a presidential vote in April.
"There are concerns regarding the backlash against any
protectionist policies that come out of Washington and other
countries and investors are seeking clarity," said Adam Sarhan,
chief executive officer at 50 Park Investments.
The euro fell to a one-week low against the dollar, while
European stocks also dropped.
"Political risk is serving to dampen the euro after last
week's stumble from the $1.08 area," said Shaun Osborne, chief
FX strategist at Scotiabank in Toronto.
In late trading, the euro fell 0.4 percent against the
dollar to $1.0742. It earlier dropped to $1.0705, its
weakest level since Jan. 31.
Investors were largely focused on French politics, as
far-right National Front leader Marine Le Pen launched her
presidential bid, vowing to fight globalization and take France
out of the euro zone.
In the U.S. equity market, key indexes were modestly lower
ahead of a slew of corporate results and lingering uncertainty
over Trump's policy decisions and their potential impact on the
The Dow Jones Industrial Average fell 19.04 points,
or 0.09 percent, to 20,052.42, the S&P 500 lost 4.86
points, or 0.21 percent, to 2,292.56 and the Nasdaq Composite
dropped 3.21 points, or 0.06 percent, to 5,663.55.
Oil slipped as ample U.S. supplies and excess speculation
outweighed OPEC output curbs and rising tensions between the
United States and Iran.
Brent futures fell $1.09, or 1.9 percent, to settle
at $55.72 a barrel, while U.S. West Texas Intermediate crude
lost 82 cents, or 1.5 percent, to close at $53.01. It was
the lowest close for both contracts since Jan. 31.
A stronger dollar also dampened oil prices. The greenback
rose as much as 0.2 percent against a basket of major
currencies before paring gains and trading flat.
The dollar slid to its lowest in more than two months
against the yen, pressured by a drop in U.S. Treasury
yields, analysts said.
European shares closed lower, with a negative note on
carmakers and worries over Italian banks leading those sectors
down. The pan-European STOXX 600 index
fell 0.6 percent.
The risk-off sentiment boosted spot gold, which jumped 1.21
percent to $1,234.86 per ounce at 2100 GMT, the highest since
The mounting political uncertainty in Europe and a dearth of
information on Trump's promised pro-growth policies also boosted
U.S. Treasury prices, with the 5-year yield touching a two-week
low of 1.850 percent.
"The longer Congress and the Trump administration dither on
fiscal stimulus, the less likely in everyone's estimation that
it will come to pass," said Aaron Kohli, an interest rate
strategist at BMO Capital Markets in New York.
(Additional reporting by Lewis Krauskopf, Gertrude
Chavez-Dreyfuss, Scott DiSavino and Sam Forgione in New York;
Editing by Nick Zieminski and Dan Grebler)