* White House failure on healthcare raises worries over tax
* Dollar skids to 4-month low
* Safe havens such as gold, bonds, yen gain
* Oil dips toward $50 on doubts over output cut
(Updates to close of U.S. trading)
By Saqib Iqbal Ahmed
NEW YORK, March 27 Stocks, the dollar and U.S.
long-dated Treasury yields steadied after sharp drops on Monday,
as investors hoped U.S. President Donald Trump will be able to
bolster the economy despite a defeat over healthcare reform.
Trump's failure to rally enough support from his own party,
- which controls both houses of the U.S. Congress, to repeal and
replace Obamacare spurred a rush to safe-haven assets such as
gold, the Japanese yen and the Swiss franc
before nerves steadied.
A dip in risk appetite also dominated Asian and European
stock markets, and MSCI's all-country world equity index
was down 0.11 percent. The index, which fell to
a near two-week low after Wall Street stocks hit their lowest
levels in about six weeks at the open, recovered ground as major
U.S. stock indexes trimmed losses.
The Nasdaq Composite finished the day positive,
while the Dow Jones Industrial Average ended the day down
0.22 percent, its eighth straight day of declines.
"The market is still cautiously optimistic that the Trump
White House will be able to push through many of their
pro-business policies, and I think a lot of people are hopeful
the Trump rally can continue through at least the middle of the
year," said Jake Dollarhide, chief executive officer of Longbow
Asset Management in Tulsa, Oklahoma.
The S&P 500 lost 2.39 points, or 0.10 percent, to
close at 2,341.59 and the Nasdaq added 11.64 points, or 0.2
percent, to end at 5,840.37.
European shares were hit by losses among miners and banks.
Europe's broad FTSEurofirst 300 index closed down 0.37
percent at 1,479.05.
The U.S. dollar slipped, briefly falling to its lowest since
November against a basket of currencies, as investors lost
confidence in prospects for a U.S. fiscal spending boost under
the Trump administration.
The dollar index had risen to a 14-year high near
104.00 in early January when expectations for inflation-boosting
stimulus under the Trump presidency were at their peak. The
index was down 0.42 percent at 99.212.
The weaker dollar helped boost gold. Spot gold was up
0.87 percent at $1,254.66 an ounce, after hitting a 1-month
high of $1,261.03 an ounce earlier in the session.
U.S. long-dated Treasury yields fell to one-month lows,
knocked by growing uncertainty about whether the Trump
administration could deliver on its campaign promise to bolster
In late trading, benchmark 10-year note price
gained 7/32 to yield 2.3764 percent, down from Friday's 2.4
percent. Yields earlier fell to 2.348 percent, their weakest
level in one month.
U.S. 30-year bond prices rose 9/32, yielding
2.9848 percent. Earlier, yields slid to 2.96 percent, their
lowest since Feb. 28.
"The recent hiccup on the policy front casts serious doubt
on the administration's ability to push forward its ambitious
policy agenda," said Bruno Braizinha, interest rates strategist
at Societe Generale in New York.
Oil, meanwhile, resumed its slide as investors remained
uncertain whether producing nations would extend an OPEC-led
output cut beyond the end of June in an effort to reduce a
global glut of crude.
Brent crude settled down 5 cents, or 0.1 percent, at
$50.75 a barrel, and U.S. crude settled down 24 cents, or
0.5 percent, at $47.73.
(Additional reporting by Chuck Mikolajczak and Gertrude
Chavez-Dreyfuss in New York and Yashaswini Swamynathan in
Bengaluru; Editing by Nick Zieminski and Dan Grebler)