(Updates to U.S. trading, adds bylines, changes dateline to New
York; previous London)
* Dollar up before start of Federal Reserve meeting
* Oil dips on report of rising stocks, Saudi output jump
* Wall Street opens lower as energy shares weigh
By Lewis Krauskopf
NEW YORK, March 14 Oil prices tumbled on
Tuesday, weighing down energy shares in the wake of a report of
rising crude stocks, while the U.S. dollar strengthened ahead of
an expected Federal Reserve decision to raise interest rates.
Oil prices slid to three-month lows after OPEC reported a
rise in global crude stocks and a surprise jump in production
from its biggest member, Saudi Arabia, despite output curbs by
U.S. crude prices fell 1.8 percent to $47.53 a
barrel, touching their lowest point since Nov 30. Benchmark
Brent crude fell 1.4 percent to $50.63 a barrel.
The decline in oil prices "affects the energy stocks, which
affects the overall U.S. market," said Peter Tuz, president of
Chase Investment Counsel in Charlottesville, Virginia.
"But it also calls into concern growth worldwide somewhat,
and that affects markets obviously, and I think you’re seeing a
bit of that today."
MSCI's all-country world stock index fell
On Wall Street, equity indexes opened lower, with the energy
sector the worst performing group, falling 1.5 percent.
The Dow Jones Industrial Average fell 61.83 points,
or 0.3 percent, to 20,819.65, the S&P 500 lost 11.95
points, or 0.50 percent, to 2,361.52 and the Nasdaq Composite
dropped 34.86 points, or 0.59 percent, to 5,840.93.
The U.S. Federal Reserve said it would hold a policy meeting
as planned on Tuesday and Wednesday, even as a snowstorm hit
With the central bank widely expected to raise rates, the
focus is on the pace of future hikes.
"The big question is 'does the Fed become even more hawkish
and point towards the possibility of more than three rate
hikes?'," said Constantin Bolz, head of currency strategy at UBS
Wealth Management in Zurich.
Investors also are assessing the potential outcome and
impact of a gathering of G20 finance chiefs, U.S. President
Donald Trump's first budget and a tense election in the
The pan-European STOXX 600 share index shed 0.4
percent, as banking and energy shares
The dollar rose 0.2 percent against a basket of key
currencies, bolstered by the Fed's expected interest rate
increase and by political risks in Europe amid Dutch and French
elections that have pressured European currencies.
The euro fell 0.2 percent on caution ahead of the
U.S. Treasury yields edged lower, with long-dated and
benchmark yields retreating from three-month highs touched
overnight as traders neutralized bets ahead of the Fed's
Prices on benchmark 10-year Treasuries rose 4/32
to yield 2.593 percent, from 2.607 percent late on Monday.
(Additional reporting by Nigel Stephenson in London; Editing by