(Updates to U.S. market close)
* OPEC output weighs on crude prices
* Gold at 3-month high on Fed bets
* Major U.S. stock indexes little changed; energy shares
fall
By Rodrigo Campos
NEW YORK, Oct 12 (Reuters) - Crude oil 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 edged up, led by utilities, while
commodity-related stocks accounted for the bulk of the losses on
the S&P 500.
Federal Reserve Vice-Chairman Stanley Fischer said on Sunday
that 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. urn:newsml:reuters.com:*:nL1N12B087
Crude oil futures CLc1 settled 5.1 percent lower after
gaining almost 9 percent last week, with Brent LCOc1 posting
its largest daily drop in six weeks, down 5.3 percent.
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. urn:newsml:reuters.com:*:nL8N12C22M
The U.S. bond market was closed for the Columbus Day
holiday.
On Wall Street, stocks ended slightly higher. 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 47.37 points,
or 0.28 percent, to 17,131.86, the S&P 500 .SPX gained 2.57
points, or 0.13 percent, to 2,017.46 and the Nasdaq Composite
.IXIC added 8.17 points, or 0.17 percent, to 4,838.64.
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 0.1 percent.
Overnight, Chinese stocks .SSEC jumped more than 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
Nikkei futures NKc1 were up less than 0.1 percent.
OIL OFF DESPITE PRESSURE ON GREENBACK
Brent settled below $50 a barrel on its biggest daily
percentage decline since the start of September. U.S. light
crude settled down 5.1 percent at $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 .DXY 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 120 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 hit its highest since early July on bets the Fed
will delay its expected rate hike beyond the end of the year.
Gold XAU= rose 0.5 percent after gaining 1.7 percent last
week.
Copper rose 0.4 percent following a near 4 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.