(Adds U.S. markets)
* MSCI world index down 0.8%
* Major U.S. indices lower
* Dollar supported by consumer spending data
* Oil prices fall on lockdown fears
* Euro zone Q1 GDP falls less than expected
* Global asset performance https://tmsnrt.rs/33TWwY1
By Matt Scuffham
NEW YORK, April 30 (Reuters) - World shares fell on Friday
following Thursday's record peak on strong U.S. data and
earnings, while the dollar was on course to narrowly avoid a
fourth straight weekly decline.
MSCI's broadest gauge of world shares .MIWD00000PUS
remained on track for its strongest month since November.
The index, which covers 50 markets, shed 0.86%.
U.S. indices fell back after the S&P 500 closed at a record
high on Thursday.
The Dow Jones Industrial Average .DJI fell 181.85 points,
or 0.53%, to 33,878.51, the S&P 500 lost 27.45 points, or 0.65%,
to 4,184.02 and the Nasdaq Composite .IXIC dropped 104.69
points, or 0.74%, to 13,977.85.
Investors have been ebullient in recent weeks although some
have questioned whether the rally will run into hurdles after
setting such a lightning pace and with so much of the economic
recovery and fiscal stimulus splurge already priced in.
With that in mind, traders are starting to focus more on
value stocks, said Dennis Dick, a trader at Bright Trading LLC.
"You wonder if this is a period where value is going to
continue to outperform growth," he said. "We didn't care at all
about valuations last year but we're starting to care about them
now."
Data on Thursday showed U.S. economic growth accelerated in
the first quarter, fuelled by massive government aid to
households and businesses. That came against the backdrop of the Federal Reserve's
reassurance on Wednesday that it was not yet time to begin
discussing any change in its easy monetary policy. Data showing a 4.2% rebound in U.S. consumer spending in
March, amid a 21.1% surge in income as households received
additional COVID-19 relief money from the government, supported
the dollar. The dollar index =USD , a measure of the greenback's value
against a basket of major peers, rose 0.714%.
However, the index was still heading for its worst monthly
performance since July 2020.
U.S. Treasury yields fell slightly on demand for the debt to
rebalance investor portfolios for month-end, countering
expectations of higher inflation as businesses reopen from
COVID-19 related shutdowns.
Benchmark 10-year notes US10YT=RR last rose 1/32 in price
to yield 1.6383%, from 1.64% late on Thursday.
With just over a half of S&P 500 companies reporting
earnings, about 87% beat market expectations, according to
Refinitiv, the highest level in recent years.
"The Federal Reserve continues to support, Biden has this
huge stimulus programme as well and the earnings season
continues -- so far we have seen relatively benign as well as
strong earnings," said Eddie Cheng, head of international
multi-asset portfolio management at Wells Fargo Asset
Management.
For both the MSCI world index and the S&P 500, analysts are
expecting earnings in the next 12 months to recover to above
pre-pandemic levels.
European stocks ended lower after dismal economic data
stalled optimism about the recovery, but still enjoyed a third
straight month of gains.
The pan-regional STOXX 600 index .STOXX fell 0.3%,
hovering below its all-time high and ending the month 1.8%
higher.
Euro zone GDP data showed a year-on-year drop of 1.8% in the
first quarter, stronger than expectations of a 2% fall, though
economists said the bloc was on a recovery path. "There is increasingly bright light at the end of the
tunnel," Commerzbank analysts said.
"The speed of the vaccinations is picking up and the EU
recovery fund is also finally getting off the ground."
New coronavirus infections in India surged to a record,
however, and France's health minister said the dangers of the
COVID-19 variant present in India must not be underestimated.
"Risky assets have had quite a few wobbles within the
month," said Cheng.
"We need to get used to the fact that this is not going to
be a straight line."
The euro EUR= extended its bull run to a two-month high of
$1.2150 in the previous session before dropping 0.80% following
the euro zone data.
"The euro is more sensitive to the European economic
outlook, than to (what) happens in the U.S.," said Kit Juckes,
head of FX strategy at Societe Generale.
Oil prices fell on concerns about wider lockdowns in India
and Brazil.
Brent crude futures LCOc1 settled down $1.30, or 1.9%, at
$67.26 a barrel. U.S. crude futures CLc1 settled down $1.47,
or 2.26%, at $63.54 per barrel.
U.S. crude futures settled at $63.58 per barrel, down 2.2%.
Brent crude futures settled at
Spot gold XAU= dropped 0.2% to $1,767.64 an ounce. U.S.
gold futures GCc1 settled 0.14% lower at $1,767.30 an ounce.
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World FX rates YTD http://tmsnrt.rs/2egbfVh
Asset performance in US dollar terms https://tmsnrt.rs/33TWwY1
Euro zone economic growth and stocks https://tmsnrt.rs/3e1Ejgi
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