* European and U.S. shares dip
* Euro falls to one-week low on political risk
* Oil prices sink ample U.S. supply
* Gold touches November high while dollar pares gains
* Graphic: World FX rates in 2017 tmsnrt.rs/2egbfVh
(Adds settled oil prices; updates throughout; adds higher gold
By Hilary Russ
NEW YORK, Feb 6 The euro fell to a one-week low
against the dollar on Monday on uncertainty ahead of several
impending European elections, while European and U.S. stock
markets dipped ahead of a heavy week of corporate results.
Concerns over French politics ahead of the presidential vote
in April, as well as other elections in Europe later in the
year, dented the euro.
"Political risk is serving to dampen the euro after last
week's stumble from the $1.08 area," said Shaun Osborne, chief
FX strategist, at Scotiabank in Toronto.
Investors were largely focused on French politics, as
far-right National Front leader Marine Le Pen launched her
presidential bid, vowing to fight globalization and take France
out of the euro zone.
The euro was trading at $1.0746, down 0.33 percent against
the dollar at 1930 GMT. It dropped to $1.0705, its
weakest level since Jan. 31.
In the U.S. equity market, key indexes were modestly lower
ahead of a slew of results and lingering uncertainty over the
policy decisions of President Donald Trump and the potential
impact of these on the economy.
The Dow Jones Industrial Average fell 30.44 points,
or 0.15 percent, to 20,041.02, the S&P 500 lost 6.63
points, or 0.29 percent, to 2,290.79 and the Nasdaq Composite
dropped 9.62 points, or 0.17 percent, to 5,657.14.
Oil slipped, in part because ample U.S. supplies outweighed
OPEC output curbs and rising tensions between the United States
U.S. crude settled 1.52 percent, or 82 cents, lower,
at $53.07 per barrel. Brent crude was down 1.78 percent,
or $1.01, at $55.80, having touched an intra-day high of $57.13.
A stronger dollar also dampened oil prices around mid-day.
The greenback rose as much as 0.2 percent against a
basket of major currencies before paring gains and flattening
The dollar slid to its lowest in more than two months
against the yen, pressured by a drop in U.S. Treasury
yields, analysts said.
There was no overarching theme to Monday's market moves,
highlighting how correlations between financial market assets
have broken down in recent months as investors sense the era of
ultra-loose monetary policy may be winding up.
"There is a sense of general uncertainty," said Orlando
Green, European fixed income strategist at Credit Agricole. "You
could say markets are a bit edgy about the political scene in
Europe, the political scene in the U.S., and there's a bit of
uncertainty about when the Fed will hike rates next."
European shares closed lower, with a negative note on
carmakers and worries over Italian banks leading those sectors
The pan-European STOXX 600 index fell 0.6 percent.
A risk-off sentiment boosted spot gold, which rose 1 percent
to $1,232.24 per ounce, the highest since Nov. 16.
The mounting political uncertainty in Europe and a dearth of
information on Trump's promised pro-growth policies also boosted
U.S. Treasury prices, with the 5-year yield touching a two-week
low of 1.850 percent.
Japan's Nikkei rose 0.3 percent, with banks rising
after U.S. President Donald Trump signed an executive order to
scale back regulations in the U.S. financial industry
implemented after the financial crisis nearly a decade ago.
Trump meets Japanese Prime Minister Shinzo Abe on Feb. 10
and 11, with trade and currencies likely to be on the agenda.
(Additional reporting by Gertrude Chavez-Dreyfuss and Sam
Forgione in New York; Danilo Masoni and Helen Reid in London;
Editing by Bernadette Baum and Nick Zieminski)