* Array of concerns knocks risky assets, lifts safe-havens
* 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 U.S. markets)
By Herbert Lash
NEW YORK, March 15 (Reuters) - World equities eased on
Monday despite a late-day rally in U.S. stocks, on fears that a
likely move by China to tighten credit may slow global growth,
while the dollar gained on risk aversion.
Assets perceived as risky, such as stocks, crude oil and
other commodities, retreated amid an array of questions about
monetary policy, an unclear attempt to resolve Greece's debt
woes and how China will manage a looming bout of inflation.
"There's potential for the China situation to end up
working out in our favor, but right now, there's no consensus
on how this will play out in terms of currency or trade
issues," said Eric Kuby, chief investment officer at North Star
Investment Management Corp in Chicago.
Oil prices fell nearly 2 percent to below $80 a barrel and
copper slumped to its lowest in two weeks. But gold rose on
dollar strength and weaker risk appetite.
MSCI's all-country world stock index <.MIWD00000PUS> was
off 0.52 percent.
Also weighing on investors were meetings scheduled this
week by U.S. and Japanese central bank policymakers.
Whatever the asset class, investors found something to fret
about.
U.S. stocks rebounded a bit on a reversal in banking shares
after Senate Banking Committee Chairman Christopher Dodd
released a proposed financial regulation overhaul bill that
investors said did not offer any surprises for the sector. For
details see: []
The Dow Jones industrial average <> closed up 17.46
points, or 0.16 percent, at 10,642.15. The Standard & Poor's
500 Index <.SPX> rose 0.52 point, or 0.05 percent, to 1,150.51.
The Nasdaq Composite Index <> slipped 5.45 points, or 0.23
percent, to 2,362.21.
The euro fell against the dollar, weighed down by a lack of
concrete progress on a financial aid package for debt-strapped
Greece. [] The euro <EUR=> was down 0.6 percent at
$1.3673, retreating from a four-week high just shy of $1.3800
on Friday.
"The Greek debt crisis will continue to hang over the euro
like the Sword of Damocles," said Chris Gaffney, vice president
at EverBank World Markets in St. Louis.
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.
Benchmark 10-year Treasury notes <US10YT=RR> traded
unchanged in price with a yield of 3.71 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.
[]
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 ICE Futures' dollar index <.DXY> traded up 0.5 percent
against a basket of currencies at 80.221.
U.S. crude for April delivery <CLc1> settled $1.44 lower at
$79.80 per barrel, its lowest close in nearly two weeks.
London Brent crude <LCOc1> closed down $1.50 at $77.89 a
barrel.
U.S. gold futures for April delivery on the COMEX division
of the New York Mercantile Exchange settled up $3.70 at
$1,105.40 an ounce.
(Reporting by Wanfeng Zhou, Edward McAllister and Richard
Leong in New York; Chris Baldwin, Jan Harvey and Rebekah Curtis
in London; Writing by Herbert Lash; Editing by Dan Grebler)
