* Wall Street edges lower with Fed speakers in focus
* Brent rises on Libya, Iran uncertainty; U.S. crude falls
* Dollar climbs to one-month peak vs yen, nears 100 yen
By Herbert Lash
NEW YORK, Nov 12 Global equity markets and
government debt prices fell on Tuesday as investors speculated
on how soon the Federal Reserve may begin reducing its stimulus,
a key support to the economy and stocks.
German Bunds hit three-week lows, tracking weaker prices for
U.S. Treasuries, as investors made room for this week's latest
supply of U.S. government debt.
A measure of global equity performance was down slightly as
stocks on Wall Street and in Europe fell, a day after the Dow
Jones industrial average hit yet another record close.
With little economic data, investors will search for clues
about potential Fed tapering in remarks by Minneapolis Fed
President Narayana Kocherlakota and Atlanta Fed President Dennis
Lockhart, who are due to speak in the afternoon.
Dallas Fed President Richard Fisher said in an interview
with CNBC cable television that the Fed's monetary stimulus
program cannot continue forever.
"There are not as many stocks participating on the upside as
there are for the downside," said Frank Gretz, market analyst
and technician for brokerage Shields & Co. in New York.
"The net of this is that the market has more to go on the
downside on the short-term, although there isn't a big problem,
a big divergence in the market," he said.
MSCI's all-country world equity index fell
0.2 percent after two days of gains, while the pan-European
FTSEurofirst 300 index of leading regional shares fell
The Dow Jones industrial average fell 53.81 points or
0.34 percent, to 15,729.29, the S&P 500 lost 5.45 points
or 0.31 percent, to 1,766.44 and the Nasdaq Composite
dropped 9.914 points or 0.25 percent, to 3,909.875.
U.S. Treasury prices fell, with the benchmark 10-year U.S.
Treasury note down 8/32 in price to yield 2.7738
The fallout of forecast-beating U.S. jobs data on Friday
wiped away Bund gains triggered by the European Central Bank's
surprise interest rate cut a day earlier.
"The main story for the Bunds is still the Fed and what
happens with tapering," said Alan McQuaid, chief economist at
Merrion Stockbrokers in Dublin.
"I still think more people expect them to move in March
rather than in December. That's my view as well, but I wouldn't
completely rule out December."
The Bund future settled down 31 ticks at 140.70.
The dollar rose to a one-month peak against the yen as
investors began to bet the Fed will begin trimming stimulus
sooner than previously anticipated.
The dollar was last up 0.47 percent at 99.62 yen,
with the peak of 99.79 yen its strongest since Sept. 13.
The euro was up 0.18 percent at $1.3430 and holding
above a two-month low of $1.3295 hit last Thursday, when it sold
off sharply after the ECB's unexpected rate cut.
Brent crude futures initially rose as disruptions to Libyan
oil exports showed no sign of abating and Iran said splits
between Western powers had prevented a breakthrough in nuclear
talks that could relax sanctions.
Brent crude for December delivery was up 5 cents at
$106.45 a barrel. U.S. crude for December delivery was
down 83 cents at $94.31 a barrel.