* U.S. stocks fall, weighed by energy sector
* Oil sinks 1 percent on rising rig count figures
* U.S., European bond yields fall from highs
(Updates to U.S. market close, adds quote)
By Dion Rabouin
NEW YORK, Oct 17 Major stock markets around the
world fell on Monday and U.S. and European bond yields slipped
from four-month highs amid uncertainty over the health of the
U.S. stocks fell as declining oil prices pushed energy
stocks down and consumer discretionary shares stumbled.
Stocks moved lower after comments from Federal Reserve Vice
Chairman Stanley Fischer, who said economic stability could be
threatened by low interest rates, but it was "not that simple"
for the Fed to raise rates.
European stocks closed lower across the board with the
pan-European FTSE Eurofirst 300 index down 0.69
A global tracker of emerging market stock indexes
fell 0.26 percent.
"We've got a bunch of uncertainty coming up. You have first
the election, then you have the OPEC meeting where they are
finally going to actually say what they are going to do and at
some point here you probably have a 25-basis point increase in
the Fed funds rate," said Tim Ghriskey, chief investment officer
of Solaris Group in Bedford Hills, New York.
The Dow Jones industrial average fell 51.98 points,
or 0.29 percent, to 18,086.4, the S&P 500 lost 6.48
points, or 0.3 percent, to 2,126.5 and the Nasdaq Composite
dropped 14.34 points, or 0.27 percent, to 5,199.82.
A gauge of equity markets around the globe
was down 0.34 percent.
Oil prices fell, weighed by oversupply concerns, with a
spike in trade volume driving U.S. prices back below $50.
Brent crude futures were down around 1 percent at
$51.55, with U.S. crude futures at $49.91 per barrel,
down 1.25 percent.
U.S. and European government bonds reversed earlier selling
and rose in price on bargain-hunting by investors who scooped up
government debt that had fallen in price on Friday following
remarks by Federal Reserve Chair Janet Yellen, analysts said.
Yellen had said the central bank may tolerate inflation above
its 2-percent goal.
Benchmark 10-year Treasury note yields earlier hit their
highest since June 2 and German and British bonds touched their
highest since late June.
Buying in Treasuries increased in afternoon U.S. trading as
losses on Wall Street and a surprise drop in a New York Federal
Reserve gauge on regional business activity in October also
The 10-year U.S. Treasury note rose 7/32 in
price to yield 1.766 percent, falling from a high of 1.814
British 10-year gilt yields were last at 1.126
percent, falling from 1.223 percent in European trading, the
highest since June 20.
German 10-year bunds were last yielding 0.057
percent, falling from 0.104 percent, their highest since June
The U.S. dollar retreated from a seven-month high as some
investors took profit following a recent rally that received a
boost on Friday by Yellen's comments and solid U.S. data.
Safe-haven gold edged up 0.33 percent as buyers began
to resurface after a 6 percent fall over the last few weeks.
(Editing by Nick Zieminski and Bernadette Baum)