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GLOBAL MARKETS-U.S. stocks flat as rally stalls, dollar up

Wed Nov 11, 2009 3:46am IST
 
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* U.S. stocks range-bound after touching 13-month high

* Dollar rises off 15-month low as risk appetite eases

* Sterling drops on Fitch credit-worthiness warning (Updates with U.S. closing prices)

By Manuela Badawy

NEW YORK, Nov 10 (Reuters) - U.S. stocks finished little changed on Tuesday as investors paused after the Dow touched a 13-month high the previous day, while the U.S. dollar edged up from a 15-month low against major currencies.

Prices of U.S. government debt were also steady after the Treasury sold $25 billion of 10-year notes and sterling sank after a rating agency's comment on UK risk.

A day after stocks rallied on expectations that U.S. interest rates will stay near zero well into next year, investors took a breather and the market traded range-bound.

"Monetary and fiscal stimulus has clearly taken hold, and has resulted in an initial growth spurt that has been sharp and fast," noted Bob Doll, chief investment officer for global equities at BlackRock in New York.

"At some point, we believe markets will require clearer evidence that corporate revenue growth is sustainable, and unless or until that occurs, we should see some continued back-and-forth action in the markets."   Continued...