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GLOBAL MARKETS-U.S. shares fall reversing global trend; euro drops
November 27, 2012 / 3:16 PM / 5 years ago

GLOBAL MARKETS-U.S. shares fall reversing global trend; euro drops

* Shares rise; Greek debt deal helps
    * Euro falls after hitting one-month high
    * German government bond futures dip
    * Wall Street falls at open

    NEW YORK, Nov 27 (Reuters) - U.S. stocks fell on Tuesday,
reversing the earlier positive trend for stocks elsewhere in the
world, and the euro slipped as worry over the threat to the
economy posed by the U.S. "fiscal cliff" offset optimism from a
deal to ease Greece's debt burden.
    Earlier shares globally had climbed and safe-haven German
bonds fell after global lenders agreed a new deal to reduce
Greek debt and release loans needed to keep the country afloat.
    But as Democrats and Republicans prepared to resume budget
negotiations this week in Washington, investors in U.S. stocks
took a second look at risk.  
    U.S. data failed to allay concerns. A gauge of planned U.S.
business spending increased by the most in five months in
October but a fourth straight month of declines in shipments
underscored the damage that fears of tighter fiscal policy next
year are inflicting on the economy.. 
    "For those of us that are worried about the economy in 2013,
given the uncertainty of the fiscal cliff, this is a little bit
helpful," said Hugh Johnson, chief investment officer of Hugh
Johnson Advisors LLC in Albany, New York. "But that doesn't
remove the overarching worry about the cliff or that tax policy
and spending policy will not be right, given the weak economy."
    The Dow Jones industrial average was down 3.73
points, or 0.03 percent, at 12,963.64. The Standard & Poor's 500
Index  was up 0.07 points, or 0.00 percent, at 1,406.36.
The Nasdaq Composite Index  was down 1.03 points, or
0.03 percent, at 2,975.75. 
    The MSCI index of global stocks was last
little changed.
    The euro touched $1.3009 earlier in the global day,
its highest since Oct. 31, but lost momentum as caution set back
in and was last down 0.3 percent at $1.2930.
    U.S. consumer confidence rose to a four-and-a-half-year high
in November as consumers became more optimistic about the
outlook for the economy, according to a private sector report
released on Tuesday.

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