* White House failure on healthcare raises worries over tax
* Dollar skids to 4-month low
* Safe havens such as gold, bonds, yen gain
* Oil dips towards $50 on doubts over output cut
(Updates to close of European markets, updates comment)
By Saqib Iqbal Ahmed
NEW YORK, March 27 Stocks, the dollar and U.S.
long-dated Treasury yields slipped on Monday but recovered lost
ground as investors hoped U.S. President Donald Trump will still
be able to bolster the economy despite a defeat over healthcare
Trump's failure to rally enough support from his own
Republican party - which controls both houses of U.S. Congress -
to repeal and replace Obamacare spurred a rush to safe-haven
assets such as gold, the Japanese yen and the
Swiss franc, before nerves steadied.
A dip in risk appetite dominated Asian and European stock
markets, and the MSCI's all-country world equity index
was down 0.17 percent.
The index, which fell to a near two-week low after Wall
Street stocks hit their lowest levels in about six weeks at the
open, recovered ground as major U.S. stock indexes trimmed
losses. The Nasdaq Composite turned positive.
Investors appeared to be trading on the hope that the Trump
administration will still be able to deliver on its promise of
tax reform even though details remain scarce, said Brad
McMillan, chief investment officer for Commonwealth Financial in
"The beauty of it from a market perspective, is without the
details we can all trade on hope. At this point we are still
seeing the benefit of hope on the market side and we will see
what happens on the details," he said.
The Dow Jones Industrial Average fell 61.75 points,
or 0.3 percent, to 20,534.97, the S&P 500 lost 5 points,
or 0.21 percent, to 2,338.98 and the Nasdaq Composite
added 5.29 points, or 0.09 percent, to 5,834.03.
European shares were hit by losses among miners and banks.
Europe's broad FTSEurofirst 300 index closed down 0.37
percent at 1,479.05.
The U.S. dollar slipped, briefly falling to its lowest since
November against a basket of currencies, as investors lost
confidence in prospects for a U.S. fiscal spending boost under
the Trump administration.
The dollar index had risen to a 14-year high near
104.00 in early January when expectations for inflation-boosting
stimulus under the Trump presidency were at their peak. The
index was down 0.45 percent at 99.175.
The weaker dollar helped boost gold. Spot gold was up
0.91 percent at $1,255.13 an ounce, after hitting a 1-month
high of $1,261.03 an ounce, earlier in the session.
U.S. long-dated Treasury yields fell to one-month lows on
Monday, knocked by growing uncertainty about whether the Trump
administration could deliver on its campaign promise to bolster
U.S. 30-year bond prices rose 12/32, yielding
2.9816 percent. Earlier, yields slid to 2.96 percent, their
lowest since Feb. 28.
"This is just follow-through from Friday. There is
disappointment over the inability to pass the reform of
Obamacare," said Gennadiy Goldberg, interest rates strategist at
TD Securities in New York.
Meanwhile, oil resumed its slide as investors remained
uncertain whether producing nations will extend an OPEC-led
output cut beyond the end of June in an effort to reduce a
global glut of crude.
Brent crude was down 21 cents, or 0.41 percent, at
$50.59 a barrel. U.S. crude was down 37 cents, or 0.77
percent, at $47.60 per barrel.
(Additional reporting by Chuck Mikolajczak and Gertrude
Chavez-Dreyfuss in New York and Yashaswini Swamynathan in
Bengaluru; Editing by Nick Zieminski)