* Sovereign debt concerns boost safe-haven assets
* Euro slips versus U.S. dollar as Greece woes persist
* Oil eases below $80 on firm dollar, China demand fears
* U.S. government debt slips ahead of Fed policy meeting
(Updates with close of European markets)
By Herbert Lash
NEW YORK, March 15 (Reuters) - World equities eased on
Monday as investors awaited decisions from U.S. and Japanese
central bank policy meetings this week, while oil and other
commodities fell as the U.S. dollar strengthened.
Assets perceived as risky retreated amid numerous questions
about monetary policy, the resolution of Greece's debt woes and
worries that China may further tighten its monetary policy,
which could throw a wrench in the recovery of the global
economy. Almost all assets classes were swept by worries.
The euro slid on a lack of progress on a financial aid
package for debt-strapped Greece, while gold rose as investors
sought a haven from risk due to concerns over sovereign debt.
For details see: [] []
"There's a lot of back and forth on Greece," said Vassili
Serebriakov, senior currency strategist at Wells Fargo in New
York. "That's one of the factors weighing on the euro."
The fears of further credit tightening by monetary
authorities in China drove down stocks around the world.
In the United States, plans by U.S. Senate Banking
Committee Chairman Christopher Dodd to unveil revised financial
reform legislation also weighed on equities.
European stock markets closed down, with European banks
also hit by worries over U.S. regulatory reform. The
pan-European FTSEurofirst 300 <> index of top shares fell
0.7 percent to close at 1,051.55 points after hitting a
seven-week high on Friday.
MSCI's all-country world index <.MIWD00000PUS> was off 0.8
percent.
Investors worried that China's central bank will step up
credit tightening measures in the wake of an inflation rate
that is rising faster than expected. Shanghai's key stock index
fell to its lowest close in five weeks.
"That China is making these moves is a sign that the
economy could be stronger, but in the short-term there are
concerns that we're not yet on a firm enough footing to stand
this," said John Massey, portfolio manager at SunAmerica Asset
Management in Jersey City, New Jersey.
Shortly after midday the Dow Jones industrial average
<> was down 22.67 points, or 0.21 percent, at 10,602.02.
The Standard & Poor's 500 Index <.SPX> was down 5.70 points, or
0.50 percent, at 1,144.29. The Nasdaq Composite Index <>
was down 16.76 points, or 0.71 percent, at 2,350.90.
Investors moved to the sidelines ahead of the Federal
Reserve's one-day policy meeting on Tuesday. The U.S. central
bank is widely expected to stick to its near zero interest rate
policy. The Bank of Japan will hold a policy meeting on Tuesday
and Wednesday. [] Investors are keen to learn how
attempts to ignite growth have fared.
U.S. Treasury prices slipped. The benchmark 10-year U.S.
Treasury note <US10YT=RR> was down 5/32 in price to yield 3.72
percent.
There was little market reaction after two reports showed
U.S. industrial production braked sharply in February as severe
winter storms slammed parts of the United States while
manufacturing activity in New York state stalled this month.
[]
"This number is too small to suggest that the industrial
sector is really picking up steam, so it won't be a market
mover," said Subodh Kumar, chief investment strategist at
Subodh Kumar & Associates in Toronto.
The euro <EUR=> was down 0.7 percent on the day at $1.3663,
retreating from a three-week high of $1.3796 on Friday.
The dollar <.DXY> traded up almost 0.6 percent against a
basket of currencies at 80.295.
Against the yen, the dollar <JPY=> was barely up at 90.51.
Oil <CLc1> fell $1.57 to $79.67, while spot gold <XAU=>
rose $2.65 to $1,104.70 an ounce.
(Reporting by Gertrude Chavez-Dreyfuss and Richard Leong in
New York; Chris Baldwin, Jan Harvey and Rebekah Curtis; Writing
by Herbert Lash; Editing by Leslie Adler)
