* Dollar hits month low as Fed move seen as dovish
* Wall Street little changed after big post-Fed gains
* Sterling jumps after BoE rate-setter votes for hike
* Euro gains as Dutch election soothes EU breakup fears
(Updates with open of U.S. markets, changes byline, dateline
By Lewis Krauskopf
NEW YORK, March 16 A key index of world stocks
climbed to record highs while the U.S. dollar sank to a month
low on Thursday as investors digested the recent U.S. interest
rate increase and indications there would be no pick-up in the
pace of monetary tightening.
European stock markets gained after the Dutch election
victory by Prime Minister Mark Rutte which fought off a
challenge by anti-immigration, anti-European Union rival Geert
On Wall Street, major U.S. equity indexes were modestly
lower in late morning trading after gaining sharply in the wake
of the U.S. Federal Reserve's rate decision on Wednesday.
Fed Chair Janet Yellen pointed to growing faith in the
economy's trajectory as the U.S. central bank raised rates for
the second time in three months.
"Certainly, the Fed was dovish in their approach," said
Bruce Bittles, chief investment strategist at Robert W. Baird in
Sarasota, Florida. "The fact that the Fed raised rates, but not
aggressively, but yet indicated that she had confidence in the
economy certainly was a big help."
MSCI's all-country world stock index gained
0.7 percent, and hit an all-time high.
The Dow Jones Industrial Average fell 42.26 points,
or 0.2 percent, to 20,907.84, the S&P 500 lost 6.12
points, or 0.26 percent, to 2,379.14 and the Nasdaq Composite
dropped 8.82 points, or 0.15 percent, to 5,891.23.
The pan-European STOXX 600 index rose 0.6 percent
and touched its highest level since December 2015, helped by the
Fed's dovish tone and the Dutch election results.
Amsterdam's AEX index rose 0.5 percent and hit its
highest in more than nine years.
"Some of that fear around Brexit, Trump, and then Wilders
and (France's) Le Pen, may now be seeping out of the markets -
you see some of that fear dissipating," said Arne Petimezas,
analyst at AFS Group in Amsterdam, referring to far-right French
presidential Marine Le Pen.
The dollar fell 0.3 percent against a basket of key
currencies, adding to Wednesday's steep slide after the
Fed's decision and touching a one-month low.
The euro edged up against the dollar, also buoyed by
the Dutch election, after a big jump on Wednesday.
Sterling jumped after outgoing Bank of England policymaker
Kristen Forbes unexpectedly voted for a rise in interest rates
at the bank's March meeting.
U.S. Treasury yields rose from more than one-week lows on
the view that they had fallen too sharply in the prior session
after the Fed maintained its outlook for only a gradual pace of
interest rate increases this year.
Prices on benchmark 10-year Treasuries US10YT-RR fell 6/32
to yield 2.524 percent, from 2.504 percent late on Wednesday.
Oil prices eased as support from a weaker dollar was offset
by a stubbornly high level of U.S. inventories.
Brent crude was 6 cents lower at $51.75 a barrel.
U.S. light crude was down 16 cents at $48.07 a barrel.
(Additional reporting by Jemima Kelly in London; Editing by