* Treasuries prices rise on safe-haven bid
* Shares snap longest winning streak since February
* Crude futures retrace morning wins, end lower
(Updates prices, comment)
By Rodrigo Campos
NEW YORK, Oct 13 (Reuters) - A gauge of stocks in major
markets fell on Tuesday for the first session in 10 after
Chinese trade data reinforced views that the world's
second-largest economy continues to lose momentum, while further
clouding the market's view on U.S. interest rates.
Crude futures ended lower after early gains.
China's exports fell less than expected in September but a
sharper fall in imports left economists divided over whether the
country's ailing trade sector is showing signs of turning
around. The data was not enough to suggest a greater risk of a
hard landing, but it did feed expectations that Beijing will
soon add to stimulus measures.
St. Louis Federal Reserve President James Bullard, who
opposed the decision to delay a rate hike when the Fed met in
September, said recent economic data is unlikely to convince
other policymakers to increase rates when the Fed meets in two
weeks. Fed Governor Daniel Tarullo said the Fed should not hike
interest rates this year.
Fed Chair Janet Yellen and Vice Chair Stanley Fischer have
recently said they support raising rates this year, but an
increasingly vocal group of policymakers warn a global economic
chill could weigh heavily on the U.S. economy.
"The biggest market-moving news out is the Fed chitchat, and
that's not really helping," said Kim Forrest, senior equity
research analyst, Fort Pitt Capital Group in Pittsburgh. "They
keep saying something is going to happen and nothing happens."
The Dow Jones industrial average .DJI fell 49.97 points,
or 0.29 percent, to 17,081.89, the S&P 500 .SPX lost 13.77
points, or 0.68 percent, to 2,003.69 and the Nasdaq
Composite .IXIC dropped 42.03 points, or 0.87 percent, to
4,796.61.
The MSCI world share index .MIWD00000PUS fell 0.8 percent,
ending its longest winning streak since February.
The FTSEurofirst 300 index .FTEU3 ended down 0.9 percent
and emerging market stocks .MSCIEF fell 1.3 percent. Nikkei
futures NKc1 fell 1.4 percent.
Fort Pitt's Forrest said the weakness in stocks toward the
market close could be attributed to "a little bit of nervousness
out there as the real earnings season begins."
After the closing bell, JPMorgan (N:JPM) started a string of reports
from major U.S. banks. Within a week Goldman Sachs (N:GS), Bank of
America, Citigroup (N:C), Wells Fargo (N:WFC) and Morgan Stanley (N:MS) will post
results.
OIL BOUNCE FIZZLES
Crude prices lost all their early gains. Brent LCOc1
settled down 1.2 percent at $49.24 per barrel after gaining 1.7
percent at its session high and WTI CLc1 dropped 0.9 percent
to settle at $46.66 after rising as much as 2.8 percent. Both
fell more than 5 percent on Monday.
A slowdown in demand growth next year and added supply from
Iran if sanctions against Tehran are lifted are likely to keep
the oil market oversupplied through 2016, the International
Energy Agency said.
Safe-haven U.S. Treasuries prices rose after the Chinese
trade data, while continued expectations for a later Fed rate
liftoff also supported prices.
"It's all a global growth fear trade," said Priya Misra,
head of global rates strategy at TD Securities in New York. She
said the Chinese data was the main catalyst behind the demand
for U.S. government debt.
U.S. 30-year Treasury bonds US30YT=RR were last up 29/32
in price to yield 2.8827 percent, from a yield of 2.928 percent
late on Friday. Benchmark 10-year notes US10YT=RR were last up
16/32 to yield 2.0439 percent, from a yield of 2.099 percent
late on Friday.
The U.S. bond market was closed on Monday.
The dollar's value against a basket of six major currencies
.DXY dipped less than 0.1 percent and earlier touched its
lowest in nearly a month.
The euro EUR= added 0.2 percent against the greenback at
$1.1381 and the yen JPY= also strengthened 0.2 percent at
119.76 per dollar.