* Oil touches 1-month low
* Dovish Rosengren expects earlier Fed hike than does market
* Metals prices fall on China demand concern
* Defensive plays lead European shares higher
* Wall St little changed
(Adds close of European markets)
By Chuck Mikolajczak
NEW YORK, April 4 (Reuters) - The dollar resumed its move
lower on Monday after the impact of comments from a U.S. Federal
Reserve official faded, but oil prices stayed under pressure on
skepticism producers would be able to freeze output.
A usually dovish U.S. central banker, Boston Fed President
Eric Rosengren, said it was "surprising" that futures markets
currently imply one or zero interest-rate hikes this year, a
prediction he said could prove "too pessimistic."
That moved the dollar .DXY up to a session high of 94.829
against a basket of major currencies before fading. The
greenback was last down 0.14 percent at 94.482.
Investors have been trying to reconcile conflicting
statements from U.S. Federal Reserve officials in recent weeks
since the central bank issued its policy statement on March 16.
Federal Reserve Chair Janet Yellen said last week the
central bank would proceed cautiously in raising rates, in
contrast to more hawkish comments from other Fed officials. The
apparent lack of cohesion has left investors uncertain in an
environment of mixed economic data.
"It goes to show how the Fed rate debate remains fluid, but
I think the market has attuned mostly with the Fed Chair," said
Joe Manimbo, senior market analyst at Western Union Business
Solutions in Washington, on the limited impact of Rosengren's
comments.
Federal Reserve Bank of Minneapolis President Neel Kashkari
and Bank of Dallas President Robert Kaplan are scheduled to
speak later on Monday.
New orders for U.S. factory goods fell in February and
business spending on capital goods was much weaker than
initially thought, the latest indications that economic growth
remained sluggish in the first quarter.
The Dow Jones industrial average .DJI fell 26.13 points,
or 0.15 percent, to 17,766.62, the S&P 500 .SPX lost 3.38
points, or 0.16 percent, to 2,069.4 and the Nasdaq Composite
.IXIC dropped 6.47 points, or 0.13 percent, to 4,908.08.
MSCI's index of world shares .MIWD00000PUS , edged up 0.16
percent, buoyed by gains in European stocks. The pan-European
FTSEurofirst 300 share index .FTEU3 closed up 0.46 percent,
led higher by gains in defensive sectors such as utilities and
healthcare.
Brent crude LCOc1 , was down 1.5 percent at $38.11, its
lowest since March 4. U.S. crude CLc1 was off 1.6 percent at
$36.21 as a global glut seemed likely to continue. Iran will
raise its crude output and exports until it reaches pre-sanction
levels, the semi-official Mehr news agency quoted Oil Minister
Bijan Zanganeh as saying.
Prices have fallen from above $100 a barrel since mid-2014
on a supply glut, bottoming at $27.10 in late January. Brent
topped $42.50 last month in anticipation of agreement among
producers to freeze output.
Copper prices CMCU3 hit a one-month low of $4,757.50 a
tonne on concern about Chinese demand for metals and was last
down 1.4 percent at $4,760.50.
Gold XAU= fell for a second successive day, dropping about
0.38 percent to $1,217.41 an ounce.
Benchmark U.S. 10-year notes US10YT=RR were last up 7/32
in price to yield 1.7688 percent, after hitting a one-month low
of 1.753 percent.