* European and U.S. shares dip
* Euro falls to one-week low on political risk
* Oil lower on stronger dollar and ample U.S. supply
* Graphic: World FX rates in 2017 tmsnrt.rs/2egbfVh
By Hilary Russ
NEW YORK, Feb 6 The euro fell to a one-week low
against the dollar on Monday on uncertainty ahead of several
impending European elections, while European and U.S. stock
markets dipped ahead of a heavy week of corporate results.
Concerns over French politics ahead of the presidential vote
in April, as well as other elections in Europe later in the
year, dented the euro.
"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.
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 mid-morning trading, the euro fell 0.4 percent against
the dollar to $1.0737. It dropped to $1.0705, its weakest
level since Jan. 31.
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.
But the greenback rose 0.2 percent against a basket
of major currencies.
In the U.S. equity market, key indexes were modestly lower
ahead of a slew of results and lingering uncertainty over the
policy decisions of President Donald Trump and the potential
impact of these on the economy.
The Dow Jones Industrial Average rose 4.83 points, or
0.02 percent, to 20,076.29, the S&P 500 lost 2.68 points,
or 0.12 percent, to 2,294.74 and the Nasdaq Composite
dropped 0.31 points, or 0.01 percent, to 5,666.46..
Oil slipped as the strong dollar and ample U.S. supplies
outweighed OPEC output curbs and rising tensions between the
United States and Iran.
Brent crude was trading at $56 a barrel, or 1.4
percent, having touched an intra-day high of $57.13. U.S. crude
was down 40 cents, or 1.1 percent, at $53.24.
There was no overarching theme to Monday's market moves,
highlighting how correlations between financial market assets
have broken down in recent months as investors sense the era of
ultra-loose monetary policy may be winding up.
"There is a sense of general uncertainty and I'm not sure if
you can pin-point it to anything in particular," said Orlando
Green, European fixed income strategist at Credit Agricole.
"You could say markets are a bit edgy about the political
scene in Europe, the political scene in the U.S. and there's a
bit of uncertainty about when the Fed will hike rates next."
The pan-European STOXX 600 index was 0.57 percent
lower, with banking stocks, particularly in Italy
, weighing on the index.
MSCI's broadest index of Asia-Pacific shares outside Japan
rose 0.65 percent.
Japan's Nikkei rose 0.3 percent, with banks rising
after U.S. President Donald Trump signed an executive order to
scale back regulations in the U.S. financial industry that were
implemented after the financial crisis nearly a decade ago.
Trump meets Japanese Prime Minister Shinzo Abe on Feb. 10
and 11, with trade and currencies likely to be on the agenda.
For Reuters Live Markets blog on European and UK stock
markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets
(Additional reporting by Gertrude Chavez-Dreyfuss in New York;
Nigel Stephenson and Alex Lawler in London; Editing by