* Rise in U.S. consumer confidence supports U.S. stocks
* Persistent fears of double-dip recession weigh on mkts
* Oil falls 3.7 pct, below $72 a barrel
* Gold at two-month high, yen near 15-year high
(Updates with U.S. markets' close)
By Walter Brandimarte
NEW YORK, Aug 31 (Reuters) - Growing fears of a double-dip
U.S. recession weighed on global stocks and oil prices on
Tuesday, pushing investors into the safe-haven yen, which
neared a 15-year peak versus the dollar.
Investors also rushed to the relative safety of gold and
U.S. Treasury debt. Yields on benchmark 10-year Treasuries were
on track to record their largest monthly drop since November
2008, when financial markets were reeling from the Lehman
Brothers collapse.
Oil prices, viewed as a proxy for the global economy,
slumped nearly 4 percent.
Worries about the world's largest economy have been boosted
by recent reports showing a marked economic slowdown. The
latest bad data included an index of business activity in the
U.S. Midwest, which rose less than economists expected. For
details, see [].
Minutes from the U.S. Federal Reserve's latest policy
meeting, in which policymakers saw increasing risks to economic
growth, also contributed to the cautious mood. []
U.S. stocks were supported somewhat, however, by data
showing a modest rise in the confidence of U.S. consumers in
August, coupled with a larger-than-expected rise in U.S. home
prices in June. []
"Markets responded to the better-than-expected U.S.
consumer confidence, but the markets have not made their mind
up about the recovery," said Mike Lenhoff, chief strategist at
Brewin Dolphin. "There are still worries about a double-dip
recession."
The Dow Jones industrial average <> ended up 4.99
points, or 0.05 percent, at 10,014.72, while the Standard &
Poor's 500 Index <.SPX> edged up 0.41 point, or 0.04 percent,
to 1,049.33. The Nasdaq Composite Index <> declined 5.94
points, or 0.28 percent, to 2,114.03.
For the month, both the Dow and the S&P 500 lost more than
4 percent. The Nasdaq fell more than 6 percent.
European stocks erased losses after the U.S. consumer
confidence data but still recorded their largest monthly
decline in August since May.
The FTSEurofirst 300 index <> of top European shares
eked out a gain of 0.08 percent after falling as much as 1.3
percent earlier on Tuesday. It lost around 2 percent in the
month.
The MSCI All-Country World equity index <.MIWD00000PUS>
slid 0.26 percent.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
See graphs on:
Consumer confidence: http://link.reuters.com/pex48n
Yen versus dollar: http://link.reuters.com/byv86n
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
In another sign of investor concern about the
sustainability of the global recovery, oil prices fell for the
second consecutive session.
U.S. crude oil prices for October delivery <CLV0> settled
down $2.78, or 3.72 percent, at $71.92 a barrel. The contract
extended losses after settlement, tumbling 4.4 percent from the
Monday close to $71.53 a barrel.
YEN NEARS 15-YEAR HIGH
The yen on Tuesday neared a 15-year high against the
dollar, marking its fourth monthly rise, as U.S. economic
concerns boosted the safe-haven appeal of the Japanese
currency.
The strengthening of the yen came despite Japan's decision
to expand cheap loans to banks, a symbolic monetary easing move
considered a sign that authorities may act further to stop the
currency appreciation.
"The policy action by the BoJ isn't going to change the
market's mood. It would probably take intervention to shake
things up a bit," said Vassili Serebriakov, currency strategist
at Wells Fargo in New York.
The dollar was down 0.69 percent against the yen <JPY=> at
84.02. It had earlier fallen to 84.83, according to Reuters
data, not far from its 15-year low of 83.58 set on electronic
trading platform EBS last week.
The euro <EUR=> was up 0.12 percent at $1.2678.
U.S. Treasury prices gained further as investors sought
safety amid signs of a faltering economy.
The benchmark 10-year U.S. Treasury note <US10YT=RR> was up
17/32 in price, with the yield at 2.47 percent. The 30-year
bond <US30YT=RR> rose 36/32, with the yield at 3.522 percent.
August has proven a banner month for government bonds, with
benchmark 10-year notes and the 30-year bond on track for the
biggest monthly dip in yield since November 2008, when the
financial sector was reeling from the Lehman Brothers
bankruptcy and the credit crisis reached its peak.
Spot gold <XAU=>, another safe-haven investment, gained
$10.35, or 0.84 percent, to $1,246.60, the highest since late
June.
(Additional reporting by John Parry, Rodrigo Campos, Vivianne
Rodrigues and Aleksandra Michalska; Editing by Dan Grebler)
