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GLOBAL MARKETS-S&P 500 erases gains on global growth fears; Europe stocks rise

Published 2016-02-10, 05:23 p/m
© Reuters.  GLOBAL MARKETS-S&P 500 erases gains on global growth fears; Europe stocks rise
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* S&P 500 ends mostly flat; Dow drops 100 points
* European shares snap 7-day losing streak
* Brent crude prices rise, U.S. crude prices fall
* Dollar hits lowest vs yen since Nov. '14
* Benchmark Treasury yields hit one-yr low

(New throughout, updates prices and market activity to close of
U.S. markets)
By Sam Forgione
NEW YORK, Feb 10 (Reuters) - Most U.S. shares ended little
changed to lower on Wednesday, erasing early gains on concerns
about global growth and sliding commodity-related shares, while
greater calm surrounding the European banking sector boosted
that region's shares.
The benchmark U.S. S&P 500 .SPX stock index rose as much
as 1.6 percent following Federal Reserve Chair Janet Yellen's
prepared testimony to Congress. It changed course and ended
mostly flat, while the Dow Jones industrial average ended down
100 points.
Yellen acknowledged that tightening financial conditions and
uncertainty about China posed risks, but told Congress she does
not expect the central bank to reverse its rate hike program.
As upbeat sentiment faded and U.S. oil prices fell,
materials and energy shares were Wall Street's biggest losers.
Stock markets have sagged given uncertainty surrounding monetary
policy and a steep decline in commodity prices.
European shares snapped a seven-day losing streak, bolstered
by solid earnings and a recovery in Deutsche Bank DBKGn.DE
from 30-year lows. The euro zone's banking index .SX7E ended
up 6.9 percent. It still appeared headed for a seventh straight
weekly decline, the longest losing streak since 1998.
"Nervous investors have been selling strength in the
market," said Alan Gayle, senior investment strategist at
RidgeWorth Investments in Atlanta, citing persistent worries
about global growth.
MSCI's all-country world equity index .MIWD00000PUS , which
tracks shares in 45 nations, was last down 0.35 points or 0.1
percent, at 358.08.
The Dow Jones industrial average .DJI ended down 99.64
points, or 0.62 percent, at 15,914.74. The S&P 500 .SPX closed
down 0.35 points, or 0.02 percent, at 1,851.86. The Nasdaq
Composite .IXIC rose 14.83 points, or 0.35 percent, to
4,283.59.
Europe's broad FTSEurofirst 300 index .FTEU3 ended up 1.78
percent, at 1,241.49. On Tuesday, the index fell 1.6 percent and
hit its lowest since September 2013.
Brent crude prices LCOc1 settled up 52 cents, or 1.72
percent, at $30.84 a barrel. U.S. crude CLc1 settled down 49
cents, or 1.75 percent, at $27.45 a barrel. O/R
The dollar hit 113.100 yen, its lowest since Nov. 2014, as
investors packed into the safe-haven Japanese currency despite
Yellen's comments.
The "dovish undertones" of Yellen's testimony reinforced the
view "that the Fed is probably not going to go through with a
rate increase next month," said Kathy Lien, managing director of
BK Asset Management in New York.
Treasury yields dipped after the U.S. Treasury sold $23
billion in 10-year notes to solid demand, showing investors have
been unfazed by this year's drop in yields.
Benchmark 10-year U.S. Treasury yields US10YT=RR hit a
one-year low of 1.673 percent.
U.S. gold futures for April delivery GCJ6 settled down 0.3
percent at $1,194.60 an ounce.

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INSTANT VIEW 4-Yellen nods to uncertain market, notes US
strength
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