GLOBAL MARKETS-Wall St down, Europe shares in first weekly drop since April

Fri Jun 27, 2014 2:38pm EDT

* U.S. stocks set for second week of losses in three
    * U.S. 10-year yield near 3-week low, gold higher
    * Brent oil in for biggest weekly drop in a month

 (Updates with midday markets)
    By David Gaffen and Barani Krishnan
    NEW YORK, June 27 (Reuters) - U.S. stocks edged lower on
Friday as mixed economic data pushed Wall Street towards a
second week of losses in three, and European equities had their
first weekly drop since April on worries over unrest in Iraq and
Ukraine.
    U.S. Treasuries yields eased at the end of a week of steady
price gains for government bonds fueled by increasing worries
that economic growth in the No. 1 economy may be slower than
policymakers believe.
    The dollar fell 0.2 percent against a basket of major
currencies and looked set for a second week of losses,
after U.S. consumer sentiment data was not positive enough to
boost expectations for a rise in interest rates any time soon.
    The S&P 500 was less than 1 percent away from an intraday
record high reached on Tuesday as U.S. consumer sentiment rose
more than expected, according to the Thomson Reuters/University
of Michigan's final June reading issued on Friday.
    "The market is listless with earnings and data coming in
mixed, but stocks in general continue to look attractive
relative to bonds, and we're fairly priced from a historical
perspective," said David Katz, chief investment officer at
Matrix Asset Advisors in New York. "That should be enough to
continue driving buyers, even with disappointing news."
    The Dow Jones industrial average fell 63.45 points or
0.38 percent, to 16,782.68, the S&P 500 lost 3.53 points
or 0.18 percent, to 1,953.69 and the Nasdaq Composite 
added 1.856 points or 0.04 percent, to 4,380.902. Nike Inc
 shares rose 1.6 percent to $78.15 a day after its
fourth-quarter earnings beat expectations.
    For the week, the Dow is down 0.8 percent and the S&P is
down 0.3 percent. The Nasdaq, which is up 0.4 percent, is on
track for its sixth weekly rise out of the past seven.
    The 10-year benchmark Treasury yield was at
2.5340 percent, after hitting a low of 2.507 percent earlier in
the day. 
    Europe's main stock index, the FTSEurofirst300,
settled at 1,371.28, flat on the day but down 1.7 percent for
its first weekly loss in 10 weeks. The MSCI world stocks gauge
 was at 427.10, flat on the day but down 0.5
percent on the week.
    The spot price of gold was closing in on a fourth straight
weekly gain at $1,318 an ounce, as geopolitical unrest in Iraq
and Ukraine boosted the precious metal's appeal and soft U.S.
data weakened the dollar.  
     
    Brent crude oil was almost flat at $113.26 and was
on track for its biggest weekly drop in a month since the
fighting in Iraq has not yet spread to the south where most of
the country's oil is produced. 

 (Reporting by David Gaffen in New York and Marc Jones in
London; Editing by Chizu Nomiyama and Meredith Mazzilli)
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