* U.S. bond prices rise on Fed official's comments
* Australian dollar slumps
* Wall Street off as retail earnings disappoint
* Investors eye Thailand martial law declaration
(Updates prices, adds oil closing prices)
By Caroline Valetkevitch
NEW YORK, May 20 Global stock indexes fell on
Tuesday after disappointing earnings and forecasts, while the
dollar fell for a fifth straight session against the yen.
Retailers such as TJX Companies, which posted a
lower-than-expected quarterly revenue, were among the biggest
percentage decliners on the S&P 500.
U.S. Treasuries yields dipped after New York Federal Reserve
President William Dudley said the central bank will likely be
slow in raising interest rates.
A persistent fall in U.S. Treasury yields, reflecting
uncertainty about global economic growth, has undermined the
The greenback could fall further against the yen if the Bank
of Japan does not expand its asset purchase program.
On Wednesday, the Japanese central bank is widely expected
to keep its policy unchanged, but the market will be focused on
BoJ Governor Haruhiko Kuroda's news conference.
"A greater deviation in the policy outlook may trigger a
further decline in the exchange rate," said David Song, currency
analyst at DailyFX, a unit of FX broker FXCM in New York.
Wednesday also brings minutes from the last Fed policy
meeting, which could shed light on the likelihood and timing of
rate rises. Fed Chair Janet Yellen said in March that the
central bank could raise rates six months after its bond-buying
MSCI's all-world equity index, which tracks
shares in 45 nations, was down 0.5 percent, while European
shares closed down 0.1 percent.
Shares of Britain's Vodafone fell after the company
said next year's earnings would be hit by investment in its
network, as it reported lower 2014 results due to writing down
the value of European operations.
On Wall Street, the Dow Jones industrial average fell
137.55 points or 0.83 percent, to 16,374.31, the S&P 500
lost 12.25 points or 0.65 percent, to 1,872.83 and the Nasdaq
Composite dropped 28.92 points or 0.7 percent, to
Shares of TJX tumbled 7.6 percent to $53.95 while the S&P
retail index lost 1 percent.
MSCI's broadest index of Asia-Pacific shares outside Japan
slipped 0.4 percent after Thailand declared
martial law after months of unrest.
The dollar fell 0.2 percent to 101.29 yen. The pair
also traded below its 200-day moving average - a key technical
gauge - for a second straight day.
The Australian dollar, meanwhile, fell to a two-week low
against the greenback, hurt by a slide in prices of iron ore,
the country's biggest export earner. Late on Tuesday, the
Australian currency slid 0.8 percent to US$0.9254,
after earlier dropping to US$0.9251, its lowest since May 5.
Benchmark 10-year U.S. Treasury note prices were
up 6/32 to yield 2.512 percent, from 2.536 percent late Monday.
Brent crude rose 32 cents to settle at $109.69 a
barrel, supported by instability in Libya, while U.S. crude
futures slipped 17 cents to settle at $102.44.
Platinum group metals rose as South Africa's longest and
costliest miners' strike continued. Spot platinum was up
0.1 percent at $1,464.75 an ounce.
(Additional reporting by Gertrude Chavez-Dreyfuss in New York;
Editing by Dan Grebler and James Dalgleish)