(Updates prices, changes comment)
* U.S. dollar dips on expectations Fed holds rates this year
* OPEC output weighs on crude prices
* Major U.S. stock indexes flat; energy shares slide
By Rodrigo Campos
NEW YORK, Oct 12 (Reuters) - Crude futures tumbled on Monday
on profit-taking and a report of higher OPEC production, while
pressure lingered on the U.S. dollar as markets priced the
possibility that the Federal Reserve would not begin a
tightening cycle this year.
U.S. stocks were little changed with commodity-related
stocks amassing the bulk of the losses on the S&P 500.
Federal Reserve vice-chairman Stanley Fischer said on Sunday
policymakers are still likely to raise interest rates this year,
however that is "an expectation, not a commitment," and could
change if the global economy pushes the U.S. economy further off
course. ID:nL1N12B087
Crude oil futures CLc1 fell 5 percent after gaining almost
9 percent last week, with Brent LCOc1 posting its largest
daily drop in six weeks. Secondary sources cited in OPEC's
monthly report said the group pumped 31.57 million barrels per
day in September, up 110,000 bpd from August. ID:nL8N12C22M
The U.S. bond market was closed for the Columbus Day
holiday.
On Wall Street, major stock indexes were little changed but
utility stocks, often traded in lieu of bonds due to their
perceived lower risk and high dividends, outperformed with a 0.9
percent advance by the S&P 500 utilities index .SPLRCU .
Energy .SPNY was the biggest decliner among the major S&P
500 sectors as crude oil prices slid.
Traders are "taking profits on some very nice moves,
particularly on the oil patch," said Jim Paulsen, chief
investment officer at Wells Capital Management in Minneapolis.
He said the gains in utility stocks showed "people are
getting a little defensive."
The Dow Jones industrial average .DJI rose 29.3 points, or
0.17 percent, to 17,113.79, the S&P 500 .SPX gained 0.07
points, or 0 percent, to 2,014.96 and the Nasdaq Composite
.IXIC added 5.74 points, or 0.12 percent, to 4,836.21.
The pan-European FTSEurofirst 300 index .FTEU3 and the
euro zone's blue-chip Euro STOXX 50 index .STOXX50E both fell
slightly after rallying last week. MSCI's all-country world
equity index .MIWD00000PUS was up less than 0.1 percent.
Chinese stocks .SSEC jumped over 3 percent in heavy volume
to end at their highest since Aug. 21. China's central bank took
fresh steps to inject liquidity into the economy and said the
stock market's correction "is almost over." urn:newsml:reuters.com:*:nL3N12C1QI
OIL OFF DESPITE PRESSURE ON GREENBACK
Brent fell 5 percent to $50 a barrel on its biggest
percentage decline since the start of September. U.S. light
crude settled down 5.1 percent to $47.10.
"The OPEC demand forecast for 2016 ... suggests some concern
about the strength of demand next year. We are primarily wary of
this risk," said Richard Hastings, macro strategist at North
Carolina-based Global Hunter Securities.
The dollar slipped to a three-week low versus a basket of
major currencies on doubts whether the Fed would raise interest
rates later this year in the face of a weakening global economy.
The euro EUR= was up 0.1 percent at $1.1364 and the yen
was 0.2 percent stronger at 119.98 to the greenback.
China's yuan CNY= firmed as far as 6.3175 to the dollar,
its strongest since the Aug. 11 devaluation. urn:newsml:reuters.com:*:nL3N12C1ES
Spot gold XAU= rose 0.5 percent after gaining 1.6 percent
last week.
Copper rose following a more than 3-percent gain last week
after production cuts by Glencore GLEN.L boosted base metals,
but analysts warned the shift in output may not be enough to
offset weak demand growth in China.