* Global stocks slide as Goldman charges rattle investors
* U.S. dollar, yen advance on Goldman, Greece worries
* Oil drops to $81 a barrel on rising risk aversion
* European bonds trend higher amid flight to quality
(Updates with opening of U.S. markets, adds, byline, dateline
NEW YORK)
By Herbert Lash and Jeremy Gaunt
NEW YORK/LONDON, April 19 (Reuters) - Global stocks and
commodity prices fell on Monday after Friday's fraud charges
against Goldman Sachs rattled markets around the world and sent
investors scurrying to such safe havens as the U.S. dollar.
Concerns about a delay in planned talks in Greece with the
European Union and International Monetary Fund over a possible
45 billion euro ($62.91 billion) bailout added to widespread
risk aversion.
Investors are keen to see Athens activate the deal but the
ash cloud caused by the Icelandic volcano disrupted travel in
Europe and helped delay Greek debt talks.
Copper fell to three-week lows and crude oil slipped to
around $81 a barrel on dampened risk appetite in the wake of
the charges against Goldman -- a leading commodities player --
and as European flying restrictions curbed jet fuel use.
[] []
Gold also fell on the Goldman news although it recovered
from two-week lows as some investors sought the metal as a
haven. []
"This is clearly a risk-averse market," said Omer Esiner,
senior market analyst at Travelex Global Business Payments in
Washington. "The main triggers are still the SEC's bombshell on
Goldman Sachs and the continued uncertainty about the Greek
debt situation, specifically as to how any aid package would be
applied or whether Germany would veto the package."
Emerging market stocks as measured by MSCI <.MSCIEF> fell
1.9 percent but its all-country world index <.MIWD00000PUS>
only shed 0.7 percent as Wall Street shares were little changed
after Citigroup Inc's <C.N> earnings beat expectations.
Citigroup posted a $4.43 billion first-quarter profit as
losses from bad loans declined, helping the bank turn in its
best results since 2007. [] Citigroup stock rose
7.9 percent.
Traders and investors also said the fraud charges against
Goldman, which the bank has called "completely unfounded," were
isolated to the bank and did not affect the overall outlook on
the economy, which they said is in recovery mode.
"The Goldman news is an isolated episode. It's not a game
changer," said Steve Goldman, market strategist at Weeden & Co.
in Greenwich, Connecticut.
"It's not going to change the backdrop of strong growth in
the economy, it's not going to change lending practices, it's
not going to change balance sheets," he said.
The Dow Jones industrial average <> gained 3.93 points,
or 0.04 percent, to 11,022.59. The Standard & Poor's 500 Index
<.SPX> shed 0.01 point, flat, percentage wise, to 1,192.12. The
Nasdaq Composite Index <> dropped 4.25 points, or 0.17
percent, to 2,477.01.
In Europe, stocks fell, led by energy, food groups and
airline stocks on disruptions to air travel and transportation
caused by the Icelandic volcano. []
Greek bank shares <.FTATBNK> fell 2.8 percent on worries
over the impact of widening yield spreads and austerity
measures on the weakening economy.
European and IMF officials will discuss the possibility of
more austerity measures for Greece, a top EU official was
quoted as saying on Monday. For details see: []
The premium investors demand to buy Greek rather than
German government debt ballooned to the highest since Greece
adopted the euro, while the dollar and yen gained as investors
sought the safety of the stable but low-yielding currencies.
[] []
The Greek/German 10-year government bond yield spread
<GR10YT=TWEB><DE10YT=TWEB> hit a euro lifetime high of 474
basis points, around 31 points wider than Friday's settlement.
U.S. Treasuries prices fell, though the dollar gained on
safe-haven buying.
The benchmark 10-year U.S. Treasury note <US10YT=RR> was
down 3/32 in price to yield 3.78 percent.
The dollar was up against a basket of major currencies,
with the U.S. Dollar Index <.DXY> up 0.28 percent at 81.050.
The euro <EUR=> was down 0.23 percent at $1.3465, and
against the yen, the dollar <JPY=> was up 0.14 percent at
92.28.
U.S. light sweet crude oil <CLc1> fell $1.97 to $81.28 a
barrel.
Spot gold prices <XAU=> fell 10 cents to $1,136.30 an
ounce.
(Reporting by Gertrude Chavez-Dreyfuss, Emily Flitter in New
York; Alex Lawler, Joanne Frearson, William James, Jan Harvey
and Rebekah Curtis in London; Writing by Herbert Lash)
