* Dollar eases slightly from 14-year highs
* Oil prices jump
* European shares set 11-month high
* U.S. stocks mostly down slightly in early U.S. trading
(Updates with early U.S. market activity; changes byline,
dateline, previous LONDON)
By Caroline Valetkevitch
NEW YORK, Dec 16 The dollar and U.S. stocks
dipped on Friday, taking a breather after this week's big moves
on the Federal Reserve's signal for a faster pace of U.S.
interest rate increases next year.
U.S. Treasury debt yields inched higher, continuing a
weeks-long trend. Markets appeared to be adjusting for what is
expected to be a quiet holiday period for economic data.
"We took direction from the Fed but over the next couple of
weeks we'll see some more cleaning up of positions heading into
the year-end," said Tom Simons, money market economist at
Jefferies & Co in New York.
Bond yields have surged and the dollar has rallied since
the Fed on Wednesday raised rates for the first time in a year
and its forecasts showed three more rate increases in 2017. The
dollar has since strengthened to almost parity with the euro.
U.S. stocks, which fell on Wednesday following the Fed
meeting but bounced back on Thursday, were mostly down slightly
The Dow, though, continued to march toward 20,000, a level
it has never breached.
The Dow Jones industrial average was up 19.77 points,
or 0.1 percent, to 19,872.01, the S&P 500 had lost 2.5
points, or 0.2 percent, to 2,258.31 and the Nasdaq Composite
had dropped 7.40 points, or 0.14 percent, to 5,449.46.
World stocks as measured by the MSCI world equity index
, which tracks shares in 46 countries, was barely
European shares were last up 0.2 percent. Merger
and acquisition speculation around drug maker Actelion
and insurer Generali helped the benchmark index to set
an 11-month high earlier in the session.
In the foreign exchange market, the dollar index,
which measures the greenback against a basket of six major
rivals, was last at 102.84, down 0.2 percent. It hit a 14-year
high of 103.560 on Thursday.
In mid-morning U.S. trading, 10-year Treasury prices
were down 4/32, yielding 2.593 percent, up from
Thursday's 2.578 percent. On the week, 10-year yields have
gained nearly 13 basis points.
In commodities, a strong dollar and signs of mounting supply
in London Metal Exchange warehouses dragged copper prices lower.
Other industrial metals also slipped.
Benchmark LME copper was down 1.7 percent at $5,633
Oil prices jumped as producers showed signs of adhering to a
global deal to reduce output. Brent crude futures were
trading at $55.09 per barrel, up 2 percent, while U.S. crude
was up 1.9 percent at $51.84.
For Reuters new Live Markets blog on European and UK stock
markets see reuters://realtime/verb=Opener=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets
(Additional reporting by Gertrude Chavez-Dreyfuss in New York;
Atul Prakash and Abhinav Ramnarayan in London and Shinichi
Saoshiro in Tokyo; Editing by Larry King and James Dalgleish)