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GLOBAL MARKETS-Oil tumbles on supply concern, euro up ahead of French vote

Published 2017-05-04, 12:07 p/m
© Reuters.  GLOBAL MARKETS-Oil tumbles on supply concern, euro up ahead of French vote
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(Updates trading, changes comment, dateline; previous LONDON)

* European shares at 20-month high after upbeat data, earnings

* Copper hits four-month low

By Rodrigo Campos

NEW YORK, May 4 (Reuters) - Crude oil prices continued to fall on Thursday, erasing the gains made since a production cut deal last November, while the euro strengthened against the U.S. dollar as a pro-European Union centrist looked set to win the French presidency.

Corporate results boosted European stocks to fresh 20-month highs, while losses in energy shares and gains in consumer stocks kept Wall Street little changed.

Bets on the U.S. Federal Reserve raising rates next month rose to a 74 percent chance from 71 percent Wednesday, with help from data showing new applications for jobless benefits fell last week and the number of Americans on unemployment rolls hit a 17-year low.

In a statement after a two-day policy meeting Wednesday, the Fed downplayed recent weak economic data and said consumer spending remained solid, business investment had firmed and inflation was close to its target. economic data waxes and wanes and there's clearly a seasonal adjustment in the first quarter from which we see a bounce back," said David Donabedian, chief investment officer of CIBC Atlantic Trust Private Wealth Management in Washington, agreeing with the Fed's diagnosis.

The Dow Jones Industrial Average .DJI fell 21.25 points, or 0.1 percent, to 20,936.65, the S&P 500 .SPX gained 0.64 points, or 0.03 percent, to 2,388.77 and the Nasdaq Composite .IXIC added 2.94 points, or 0.05 percent, to 6,075.49.

The pan-European STOXX 600 index .STOXX rose 0.67 percent to its highest since November 2015 and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.11 percent.

Emerging market stocks lost 0.63 percent. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.36 percent lower, while Japan's Nikkei .N225 rose 0.70 percent.

Oil fell to its lowest since late November as concern over rising supply and high inventories wiped out most of the gains made since OPEC announced its first supply cut in eight years. crude CLcv1 fell 4.41 percent to $45.71 per barrel and Brent LCOcv1 was at $48.66, down 4.19 percent on the day.

The euro hit its highest in about six months against the U.S. dollar after centrist Emmanuel Macron consolidated his position to win France's presidential race against anti-EU candidate Marine Le Pen. Beyond Sunday's vote, traders looked at the potential for the European Central Bank to signal further reduction in bond-buying. dollar index .DXY fell 0.33 percent, with the euro EUR= up 0.76 percent at $1.0965.

The Japanese yen strengthened 0.03 percent versus the greenback to 112.73 per dollar, while sterling GBP= was last trading at $1.2913, up 0.39 percent on the day.

Copper prices CMCU3 slid to four-month lows, following their biggest one-day drop in 20 months, on rising inventories and worries over cooling demand. Copper lost 1.04 percent to $5,542.00 a tonne.

Spot gold XAU= dropped 0.8 percent to $1,227.80 an ounce. U.S. gold futures GCcv1 fell 1.63 percent to $1,228.20 an ounce.

U.S. Treasury yields rose on the jobs data and bets on the Fed's next move. 10-year notes US10YT=RR last fell 16/32 in price to yield 2.3649 percent, from 2.309 percent late on Wednesday.

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