4 Min Read
* Updates to late afternoon trading, adds commentary
* Crude oil rises following Wednesday's slump
* Stocks fall as Treasury yields climb
* Fed minutes show lack of consensus on future policy changes
* ECB minutes show policymakers discussed removing easing bias
By Sinead Carew
NEW YORK, July 6 (Reuters) - Stocks around the world fell and U.S. Treasury yields rose on Thursday while the euro gained on the U.S. dollar after minutes from the European Central Bank's latest meeting showed it could be open to scrapping its bond-buying pledge.
Benchmark Treasury yields touched nearly eight-week highs on the prospect of hawkish global central bank policy and as rising oil prices suggested inflationary pressures.
Treasury yields helped push Wall Street stocks lower in a holiday week ahead of the second-quarter earnings reporting season.
“More than anything you’ve had a fairly good-sized move up on the 10-year Treasury (yield) over a short period. Investors are on a very short term reacting to where yields are at this moment compared with only a week ago,” said Jim Paulsen, chief investment strategist at The Leuthold Group in Minneapolis.
Investors also worried that corporate earnings reports would not "surprise as positively as they did in the first quarter," according to Chris Zaccarelli, Chief Investment Officer at Cornerstone Financial Partners in Huntersville, NC.
The Dow Jones Industrial Average fell 94.71 points, or 0.44 percent, to 21,383.46, the S&P 500 lost 14.63 points, or 0.60 percent, to 2,417.91 and the Nasdaq Composite dropped 38.22 points, or 0.62 percent, to 6,112.64.
Europe's Stoxx 600 index touched its lowest point since April 21 and ended down 0.7 percent
MSCI's gauge of stocks across the globe shed 0.38 percent.
Some investors were uneasy about geopolitical issues and turned their focus to a summit of G20 nations after this week's test of a long-range missile by North Korea.
The dollar pulled back after weaker-than-expected U.S. private jobs data affirmed expectations for a gradual pace for U.S. interest rate hikes by the Federal Reserve. \
The euro, which hit a session high versus the dollar in late afternoon trading, gained on Thursday after ECB minutes showed that policymakers discussed taking out an "easing bias" at their June 7-8 meeting.
The dollar index fell 0.5 percent, with the euro up 0.61 percent to $1.1421.
Benchmark 10-year notes was last down 11/32 in price to yield 2.3713 percent, from 2.334 percent late on Wednesday.
The 30-year bond was down 31/32 in price to yield 2.9016 percent, from 2.855 percent late on Wednesday.
"You’re seeing some liquidation as people are trying to wrap their heads around what the central banks have in mind," said Lou Brien, a market strategist at DRW Trading in Chicago.
Commodity markets continued to swing. Oil futures rose, making up some of the previous session's losses after U.S. data showed crude oil and gasoline stocks dropped more than expected, yet more analysts cut price forecasts.
U.S. crude rose 0.44 percent to $45.33 per barrel and Brent was last at $47.95, up 0.33 percent on the day.
Gold pared losses and was last down 0.2 percent at $1,223.87 an ounce.
South Africa's rand was down 0.3 percent and Turkey's lira fell 0.4 percent in their second consecutive day of declines.
The rand extended Wednesday's 1.6 percent drop driven by proposals to nationalize South Africa's central bank and expropriate land without compensation.
Additional reporting by Rodrigo Campos, Gertrude Chavez-Dreyfuss and Samuel Forgione in New York, Marc Jones in London and Nichola Saminather in Singapore; Editing by Catherine Evans and James Dalgleish