* Brent crude hits 13-month low on ample supply
* German shares lag after sentiment data shows Ukraine fear
* U.S. stocks lower, energy sector weighs
(Updates prices, changes comments)
By Rodrigo Campos
NEW YORK, Aug 12 Brent crude oil hit a 13-month
low on Tuesday as ample North American production outweighed
concern over supply from the Middle East, while stocks and the
euro were pressured by plunging investor morale in Germany,
Europe's largest economy.
German shares fell more than 1 percent and the euro weakened
against the U.S. dollar after the ZEW gauge of economic
sentiment fell to its lowest level since December 2012.
Sanctions against Russia over its support of Ukrainian
separatists raised fears about the impact on Germany's economy.
Moscow said on Tuesday that a convoy of 280 trucks carrying
humanitarian aid had set off for Ukraine, but Kiev said it would
not allow the vehicles to cross into its territory. NATO has
warned Russia not to use humanitarian aid as an excuse to
"The recent string of disappointing economic indicators from
(Germany), along with an escalation of sanctions towards Russia,
has institutional investors and analysts nervous about future
economic conditions," said Scott Smith, senior market analyst at
Cambridge Mercantile Group in Calgary.
The Dow Jones industrial average fell 5.52 points or
0.03 percent, to 16,564.46, the S&P 500 lost 2.6 points
or 0.13 percent, to 1,934.32 and the Nasdaq Composite
dropped 12.08 points or 0.27 percent, to 4,389.26.
An MSCI index of stocks in major developed and emerging
economies dipped 0.1 percent and a pan-European
benchmark fell 0.2 percent, while Frankfurt's DAX
index fell 1.2 percent, in its biggest decline since
Brent prices were recently down 1.6 percent at
$103.03 while U.S. crude fell 1 percent to
The euro index, which measures the currency against
five major peers, was on track for its worst daily performance
in a week in the wake of the soft German data.
Against the U.S. dollar, the euro fell 0.2 percent,
bringing the decline since the start of July to 2.5 percent.
In U.S. debt markets, the selling pressure from this week's
supply has been partly offset by a steady bid for safe-haven
Treasuries on worries about conflicts in Iraq, eastern Ukraine
Following the auction of $27 billion in 3-year notes at the
lowest yield since April, benchmark 10-year yields
were at 2.4419 percent, not far from last week's 14-month low of
Gold was little changed at $1,308 an ounce. Copper
slipped 0.5 percent to $6,963 a tonne near a six week
Investors kept an eye on Iraq as the Prime
Minister-designate Haider al-Abadi won endorsements from the
United States and Iran as he called on political leaders to end
feuds that have allowed jihadists to seize a third of the
Still, al-Abadi's Shi'ite party colleague Nuri al-Maliki has
refused to step aside after eight years as premier that have
alienated Iraq's once dominant Sunni minority and irked
Washington and Tehran.
(Additional reporting by Richard Leong, Ryan Vlastelica and
Gertrude Chavez-Dreyfuss in New York and Jason Neely in London;
Editing by Leslie Adler and Nick Zieminski)