Dollar retreats from gains against euro and yen
The dollar fell for the first time in six sessions against the euro.
NEW YORK (Reuters) - Global equity markets traded mostly flat and the dollar fell against the euro on Thursday after reports on U.S. housing, labor and regional business conditions pointed to soft spots in the American economy.
Factory activity contracted in the mid-Atlantic region in May, ground-breaking at home construction sites tumbled in April and new claims for jobless benefits spiked last week, according to three separate reports.
Coupled with soft underlying inflation, the data suggests weak demand as the U.S. economy entered the second quarter and it curbed expectations the Federal Reserve will scale back its asset-buying program that has bolstered the equity market.
Ground-breaking for new U.S. homes plummeted more than expected in April, the Commerce Department said, while the Federal Reserve Bank of Philadelphia said its index of business conditions in the U.S. Mid-Atlantic region fell last month.
The number of Americans filing new claims for unemployment benefits climbed last week at the fastest pace in six months, the Labor Department said, confounding analysts expectations for a more modest increase.
"The dollar was on an uptrend headed into today s number, mostly due to an optimistic view of the U.S. economy," said Vassili Serebriakov, FX strategist at BNP Paribas in New York.
"The Fed has fallen short of its mandate on jobs and inflation, so the data highlights the need for further accommodation," he said.
The dollar fell for the first time in six sessions against the euro, which rose 0.09 percent against the dollar to trade near $1.2898.
Major equity indexes traded near break-even, trimming earlier losses, although the tech-heavy Nasdaq index was higher. The Dow Jones industrial average was up 13.48 points, or 0.09 percent, at 15,289.17. The Standard & Poor s 500 Index was up 0.38 point, or 0.02 percent, at 1,659.16. The Nasdaq Composite Index was up 10.09 points, or 0.29
percent, at 3,481.70.
MSCI s world equity index rose 0.05 percent, while the FTSE Eurofirst 300 index of top European shares slid 0.07 percent to close at a provisional 1,244.78.
U.S. Treasuries prices advanced after the U.S. data raised worries about the economy and underscored the absence of price pressures.
The benchmark 10-year U.S. Treasury note was up 18/32 in price to yield 1.8757 percent.
Oil prices rose but Brent oil futures remained below $104 a barrel as the soft U.S. economic data added to a bearish outlook on demand.
Brent rose 12 cents to $103.80 a barrel, while U.S. oil gained 92 cents to $95.22.
