GLOBAL MARKETS-Wall Street takes a pause, Treasury yields dip, focus on Fed

(Updates to afternoon)
By Stephen Culp
NEW YORK, April 6 (Reuters) - U.S. stocks struggled to build
on the prior session's record closing highs and Treasury yields
edged lower on Tuesday as investors digested recent upbeat data
and looked to the Federal Reserve for its economic outlook.
Cyclical and small-cap stocks, which stand to benefit most
from a reopening economy, were outperforming the broader market.
This suggests market participants are optimistic about an
economic rebound - and corporate earnings - fueled by vaccine
distribution, stimulus and a robust infrastructure bill being
debated in Washington.
"We had a big push-through on Monday which built on the jobs
report on Friday, and it's not uncommon for the market to take a
breather after reaching new highs," said Joseph Sroka, chief
investment officer at NovaPoint in Atlanta.
Indeed, Friday's blockbuster U.S. jobs report was followed
on Monday by PMI data showing the services sector's fastest
expansion on record. This was followed by a PMI report from
China that confirmed activity in its services sector is
accelerating. The market can also take a pause as earnings season draws
near, and first-quarter results will be significant, Sroka
noted, adding "this is the quarter coming up when we compare
COVID year-over-year."
The U.S. Federal Reserve is expected to release the minutes
from its last monetary policy meeting on Wednesday, and market
participants will parse it for any changes to the central bank's
economic outlook.
"(Investors are) going to be looking for little change, a
continued supportive and accommodative Fed that sees little risk
from inflation and ideally an improved outlook on economic
growth," said Oliver Pursche, president of Bronson Meadows
Capital Management in Fairfield, Connecticut.
The Dow Jones Industrial Average .DJI fell 68.19 points,
or 0.2%, to 33,459, the S&P 500 .SPX gained 1.21 points, or
0.03%, to 4,079.12 and the Nasdaq Composite .IXIC added 27.33
points, or 0.2%, to 13,732.93.
European stocks closed at a record high, having recovered
all pandemic-related losses as investors bet on a speedy global
economic recovery. The pan-European STOXX 600 index .STOXX rose 0.70% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.29%.
Emerging market stocks rose 0.71%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.76%
higher, while Japan's Nikkei .N225 lost 1.30%.
U.S. Treasury yields dipped, with 5-year notes leading the
decline, on investor views that market pricing based on an
earlier-than-expected tightening by the Fed was too aggressive.
Benchmark 10-year notes US10YT=RR last rose 18/32 in price
to yield 1.656%, from 1.72% late on Monday.
The 30-year bond US30YT=RR last rose 31/32 in price to
yield 2.3145%, from 2.363% late on Monday.
The dollar slipped to a two-week low against a basket of
world currencies, with traders taking advantage of its strong
March performance as dropping Treasury yields pressured the
greenback. The dollar index .DXY fell 0.73%, with the euro EUR= up
0.47% to $1.1867.
The Japanese yen strengthened 0.30% versus the greenback at
109.87 per dollar, while Sterling GBP= was last trading at
$1.3821, down 0.55% on the day.
Crude oil prices partially rebounded from the previous
session's losses, lifted by strong data from the United States
and China. U.S. crude CLc1 gained 1.16% to settle at $59.33 per
barrel, and Brent LCOcv1 settled at $62.74 per barrel, up
0.95% on the day.
Gold prices touched their highest level in more than a week,
benefiting from the soft dollar and lower Treasury yields.
Spot gold XAU= added 0.8% to $1,742.66 an ounce.

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Emerging markets http://tmsnrt.rs/2ihRugV
Global asset performance http://tmsnrt.rs/2yaDPgn
Credit Suisse troubles https://tmsnrt.rs/3cSklUJ
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