* Dollar gains vs yen on U.S. outlook, test of 100 seen
* World stock gains stall after recent records
* Oil pares Syria-related gains on demand concerns
By Rodrigo Campos
NEW YORK, May 6 The U.S. dollar rose against the
yen and euro on Monday and U.S. stocks hovered near last week's
record highs as a brighter outlook for the U.S. economy kept the
risk trade alive.
The euro extended its losses against the dollar to hit a
session low in mid-morning trade after European Central Bank
President Mario Draghi said the bank, which cut interest rates
last week, is watching economic data and is ready to act again.
Many analysts have expected a pullback in U.S. equities for
weeks now, which Wall Street has largely avoided as traders use
weakness as an opportunity to add to long positions.
Wall Street stocks traded slightly higher after the S&P 500
and Dow industrials hit record levels on Friday in the wake of a
strong payrolls report.
"Everyone is settling in for the moment; we had a nice week
last week and there are no real catalysts to move us
significantly one way or the other today," said Mark Martiak,
senior wealth strategist at Premier/First Allied Securities in
U.S. employment rose more than expected in April, with
165,000 jobs created, and hiring was much stronger than thought
in the previous two months, the U.S. government said on Friday.
The report eased concerns raised by other data that had pointed
to the U.S. economy losing steam.
In morning trading, the Dow Jones industrial average
was up 1.38 points, or 0.01 percent, at 14,975.34. The Standard
& Poor's 500 Index was up 3.05 points, or 0.19 percent,
at 1,617.47. The Nasdaq Composite Index was up 12.95
points, or 0.38 percent, at 3,391.58.
The euro zone's blue chip Euro STOXX 50 index
was down 0.5 percent after hitting a near-two year peak on
A 0.56 rise in MSCI's broadest index of Asia-Pacific shares
outside Japan left the MSCI world equity index
Purchasing managers indexes on Monday showed business growth
flagged in China and recession dragged on euro zone companies,
adding to a report on Friday that U.S. corporate growth slowed
Brent crude oil futures hit their highest since
April 11 after supply concerns followed Israeli air strikes on
Syria on Friday and Sunday.
But crude pared gains on demand worries cemented on the weak
data from China and the euro zone, though it later bounced back.
"The attack over the weekend of Israel on Syria, on the one
hand, can lead to some increased geopolitical premium," said
Olivier Jakob, oil analyst at Petromatrix in Switzerland.
"But the global PMIs are weak and that in itself is not
really bullish for distillates because the economy is still not
providing signs that a strong recovery is ahead. Global oil
demand is driven by distillates."
Brent was last up 1 percent at $105.30 and U.S. crude
futures added 0.4 percent at $95.97 after ending Friday
with gains of around 1.7 percent.
With Tokyo and London stock markets closed for holidays,
trading volume was generally thin across markets.
The U.S. dollar rose for a third straight session against
the yen and looked set to make another run at the 100-yen level
after last week's surprisingly strong U.S. jobs data rekindled
optimism about the U.S. economy.
The dollar rose 0.3 percent to 99.34 yen, having
earlier hit 99.45 yen, its strongest since April 25, according
to Reuters data.
The ECB cut its benchmark refinancing rate by 25 basis
points to 0.5 percent last Thursday. The euro fell sharply after
Draghi, in a post-meeting press conference, said that the bank
is technically ready for negative deposit rates.
The single currency was recently down 0.3 percent at
U.S. Treasuries prices slipped slightly on Monday as
investors continued to digest Friday's better-than-expected jobs
report, which sent yields surging to their highest levels in
U.S. government bonds are expected to stay at the relatively
higher yields as investors prepare for $72 billion in new supply
this week. Benchmark 10-year Treasuries yielded
1.755 percent, up from 1.74 percent on Friday and up from 1.62
percent before the jobs data was released.
Gold prices were little changed after two weeks of gains, on
expectations last month's price slide to the lowest in more than
two years has run its course for now.
Spot gold was recently down 0.1 percent at $1,468.20.