* Inflation trades reverse: Treasury yields fall
* Stocks fall on Wall Street weighed by consumer, banks
* Crude volatile, pares gains late
(Updates to U.S. market close, changes comments)
By Rodrigo Campos
NEW YORK, Nov 28 Crude futures rose in choppy
trading on Monday ahead of an OPEC meeting later in the week
that could reap production cuts, while the dollar pared losses
and U.S. stocks fell.
The dollar index dipped 0.24 percent after having
fallen as much as 0.8 percent. The U.S. currency sank as much as
1.6 percent to 111.32 Japanese yen before recovering to
Most analysts said the dip in the dollar since Friday was
simply a correction with the greenback still on track for its
strongest two-month gain since early 2015.
The index hit a near 14-year high of 102.05 on Thursday
before falling on Friday and slipping further to 101.32 on
"The last few days of November and the first few days of
December will be chock full of risk events, so that's provided a
convenient backdrop to take profit on the dollar's big rally,"
said Joe Manimbo, senior market analyst at Western Union
Business Solutions in Washington.
The euro was little changed versus the greenback after
rising nearly 1 percent to $1.0684 following the election of
Francois Fillon as the center-right candidate in next year's
French presidential vote. It was last at $1.0606.
Fillon, a former French prime minister, is the favorite to
become president, with a flash opinion poll suggesting he would
easily beat far-right National Front leader Marine Le Pen in a
second round run-off. Markets worry that Le Pen, who has
promised a referendum on membership of the European Union if she
wins, would threaten the future of the currency bloc.
On Wall Street, consumer and financial stocks weighed on the
S&P 500 after rallying last week. Recently battered stocks in
utilities and telecom services posted the largest gains.
"We did have a big run up, of course, in the reaction to the
election, a lot of economically-sensitive sectors like finance
had big runs," said Peter Jankovskis, co-chief investment
officer at OakBrook Investments LLC in Lisle, Illinois.
"Now we are seeing a little bit of profit taking waiting on
the next big driver."
The Dow Jones industrial average fell 54.24 points,
or 0.28 percent, to 19,097.9, the S&P 500 lost 11.63
points, or 0.53 percent, to 2,201.72 and the Nasdaq Composite
dropped 30.11 points, or 0.56 percent, to 5,368.81.
The pan-European FTSEurofirst 300 index fell 0.85
percent, while MSCI's gauge of stocks across the globe
fell 0.28 percent.
Emerging market stocks rose 0.9 percent.
OPEC MEETS IN BUSY DATA WEEK
The Organization of the Petroleum Exporting Countries meets
on Wednesday, while a week heavy in U.S. economic data including
a GDP revision, inflation, factory and services activity is set
to climax on Friday with the monthly jobs report.
Oil prices jumped in volatile trading after falling as much
as 2 percent, as the market reacted to the shaky prospect of
major producers being able to agree to output cuts later this
U.S. crude last rose 1.9 percent to $46.91 a barrel
and Brent traded at $48.04, up 1.7 percent on the day.
Market watchers expected prices to remain volatile until
OPEC's Wednesday meeting offers the market a definitive answer
as to whether OPEC and non-OPEC producers can agree on cuts.
Industrial metals also remained red hot on hopes of strong
demand for property and infrastructure investment in China and
the United States. Chinese steel futures jumped nearly
Spot gold rose 0.9 percent to $1,193.37 an ounce.
U.S. gold futures added 1.2 percent to $1,192.60 an
ounce. Copper was little changed at $5,881.15 a tonne.
U.S. Treasury yields fell from last week's multi-month or
multi-year highs on month-end buying and views that the selloff
that followed the surprise U.S. presidential election victory of
Donald Trump earlier this month may have gone too far.
"The sell-off has been quite dramatic," said Subadra
Rajappa, head of U.S. rates strategy at Societe Generale in New
York. "It has kind of run ahead of itself."
The 10-year U.S. Treasury yield hit a session
low at 2.312 percent. Benchmark 10-year notes last
rose 16/32 in price to yield 2.3142 percent.
(Reporting by Rodrigo Campos, additional reporting by Chuck
Mikolajczak, Sam Forgione, Jessica Resnick-Ault and Dion
Rabouin; Editing by Nick Zieminski and Richard Chang)