(Adds oil settlement prices)
* Crude prices slide further, with U.S. oil below $50
* Dollar underpinned by rising yields as Fed hike looms
* U.S. Treasury yields rise in bond market selloff
* Gold hits five-week low, further losses expected
By Herbert Lash
NEW YORK, March 9 Crude oil extended a slump
amid record U.S. stockpiles on Thursday, helping push down
equity markets as energy stocks slid, while bets the Federal
Reserve will raise interest rates next week weighed on gold and
Rising expectations the Fed will boost rates on March 15
lifted financial shares whose gains led major indices in Europe
to close higher with the exception of the mining- and
energy-rich FTSE 100 in London, which fell 0.27 percent.
The FTSEurofirst 300 index of leading regional
shares in Europe closed up 0.1 percent to 1,470.65.
Expectations of higher rates lifted yields on two- and
five-year U.S. Treasury notes to highs last seen in August 2009
and April 2011, respectively, as a bond market selloff
Oil prices slid to their lowest since late November as
record U.S. crude inventories kept sentiment weak and pointed to
a global glut despite supply cuts by the Organization of the
Petroleum Exporting Companies.
Brent crude oil, the global benchmark, fell 92 cents
a barrel to settle at $52.19, while U.S. light crude
settled down $1.00 to $49.28 a barrel.
Crude oil has traded in a tight range this year of about
$50 to $55 a barrel and looks poised for further declines.
Royal Dutch Shell Plc and BP Plc, along with
miners BHP Billiton and Glencore, pushed stocks
lower in London.
Apple Inc, Microsoft Corp and
International Business Machines weighed on Wall
MSCI's 46-country all-world stock index fell
for a sixth consecutive day, the longest slide since the start
of 2016. The global benchmark fell 0.17 percent, down from an
all-time high set just over a week ago.
The Dow Jones Industrial Average fell 17.42 points,
or 0.08 percent, to 20,838.31. The S&P 500 lost 0.95
points, or 0.04 percent, to 2,362.03 and the Nasdaq Composite
dropped 4.12 points, or 0.07 percent, to 5,833.43.
The outlook for U.S. stocks still remains bright on the
eighth anniversary of the current bull market, said Michael
Arone, chief investment strategist at State Street Global
Advisors in Boston.
Signs the market may turn bearish, such as frequent
corrections of 5 percent or more, a rise in interest rates above
the inflation rate and widening credit spreads are not visible,
"I do think the market could continue to rise, particularly
if the economic data and earnings continue to strengthen," Arone
said. However, "the sand in this particular bull market
hourglass is getting smaller, not greater."
The Dow Jones Industrial Average rose 18.83 points,
or 0.09 percent, to 20,874.56. The S&P 500 gained 3.78
points, or 0.16 percent, to 2,366.76 and the Nasdaq Composite
added 9.78 points, or 0.17 percent, to 5,847.33.
The dollar fell against a basket of major currencies as the
euro gained after European Central Bank chief Mario Draghi
suggested it was less necessary to prop up the market through
ultra-loose monetary policy.
Draghi said the ECB removed a reference to using all
available measures to induce growth and inflation "because the
sense of urgency is not there."
The euro rose above $1.06 during Draghi's remarks,
reversing earlier declines. It was last up 0.48 percent at
The dollar index, which tracks the greenback against
the euro and five other major world currencies, fell 0.21
percent at 101.860.
Gold sank to a five-week low, with analysts expecting
further losses, as investors become increasingly confident that
U.S. interest rates will rise.
U.S. gold futures settled down 0.51 percent to
$1,203.20 an ounce.
(Reporting by Herbert Lash; Editing by Bernadette Baum and Nick