* Global shares on track for biggest 1-day fall in 4 weeks
* Oil falls, commodities off record highs
* Yen up as investors unwind carry trades
By Wanfeng Zhou and Sebastian Tong
NEW YORK/LONDON, April 12 (Reuters) - Stocks on major
markets slumped and some commodity prices fell from recent
highs on Tuesday as concerns about economic growth and the
impact of the nuclear crisis in Japan undermined investor
confidence.
World stocks, as measured by the MSCI's main world equity
index <.MIWD00000PUS> were down 0.8 percent by early New York
trading, the index's biggest one-day decline in four weeks.
U.S. stocks slipped after a disappointing revenue reported
by aluminum maker Alcoa Inc <AA.N> late Monday. The Dow Jones
industrial average <> was down 63.12 points, or 0.50
percent, at 12,318.98. The Standard & Poor's 500 Index <.SPX>
was down 5.86 points, or 0.44 percent, at 1,318.60. The Nasdaq
Composite Index <> was down 11.12 points, or 0.40 percent,
at 2,760.31.
"There's been an undercurrent of selling in the market this
last week. The tone appears to be becoming more negative. Risk
levels appear to be rising," said Wayne Kaufman, chief market
analyst at John Thomas Financial in New York.
The FTSEurofirst 300 index <> of top European shares
slipped 1.3 percent, with miners and energy firms among the
heaviest losers. Emerging markets <.MSCIEF>, which count
several resource exporters in their ranks, fell 1.5 percent.
Brent crude oil <LC0c1> dropped $1.90 to $122.08 a barrel,
pulling back from Monday's 2-1/2 year high after a warning
about demand from the International Energy Agency
[] and investment bank Goldman Sachs <GS.N>. U.S.
crude <CLc1> lost $2.78 to 107.08 a barrel.
Societe Generale also said rising gasoline prices in the
U.S. were fueling a debate about "demand destruction" in the
world's top economy. "Geopolitics (are) still critical. But
with prices high, markets may be having doubts on demand,"
SocGen said.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ For oil futures positions vs. oil price since 2007:
http://r.reuters.com/duc98r
All Commodities Futures Trading Commission positions:
http://r.reuters.com/buv87r
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Spot gold <XAU=> fell from Monday's record high while
silver <XAG=> sagged from the previous session's 31-year high.
SAFE-HAVEN DEMAND
Concerns over global growth were heightened after Japan's
economic minister warned that the economic damage wrought by
last month's earthquake and tsunami could be worse than
initially thought. []
Japan's move to put the severity of radiation leakage at
its stricken Fukushima nuclear plant on a par with the worst
nuclear disaster at Chernobyl also weighed on sentiment.
[]
The yen and Swiss franc rose as jittery investors sold
riskier trades funded by borrowing in the two low-yielding
currencies.
"Our positioning data shows some carry trades are pretty
extended," said Chris Walker, currency strategist at UBS.
The yen firmed to a 1-1/2 week high versus the U.S. dollar
<JPY=> though gains are likely to be curbed by the Bank of
Japan's perceived determination to keep monetary policy loose
to aid economic recovery.
Still, the steadier yen offered the dollar some respite,
allowing the greenback to stay above Friday's 16-month lows
against a basket of major currencies <.DXY>.
Dovish comments from key U.S. Federal Reserve officials are
likely to cap the greenback's gains.
Two of the Fed's most powerful officials, Janet Yellen and
William Dudley, said the U.S. central bank should stick to its
super-easy monetary policy as inflation was not a threat and
unemployment remains too high. []
(Additional reporting by Angela Moon and Gertrude
Chavez-Dreyfuss in New York, Neal Armstrong and Zaida Espana in
London;)
