(Updates with U.S. markets, changes dateline from previous
* Oil flat as traders await data
* S&P 500, Nasdaq touch record high before retreating
* Dollar hit by Trump's disclosure, economy concern
By Rodrigo Campos
NEW YORK, May 16 The U.S. dollar index touched
its lowest since early November on Tuesday, hurt by weaker than
expected U.S. housing data and concerns after political turmoil
once more hit Washington.
A rally in the euro was reinforced by dollar losses,
prompted by allegations that U.S. President Donald Trump
disclosed highly classified information to Russia's foreign
minister about a planned Islamic State operation.
The story about Trump and Russia "probably is playing out as
a weaker dollar on the view that Trump may not be around long
enough to deliver his tax reform, which is at least partially
priced into the dollar," said RBC Capital Markets currency
strategist Adam Cole, in London.
The dollar index fell 0.65 percent, with the euro
up 0.91 percent to $1.1073.
The dollar index had reached 14-year highs in early January
on the view that Trump's plans for tax cuts and infrastructure
spending would boost growth and inflation, but it fell to
six-month lows on Tuesday.
The Japanese yen strengthened 0.49 percent versus the
greenback at 113.24 per dollar, while Sterling was last
trading at $1.291, up 0.13 percent on the day.
On Wall Street, the S&P 500 and Nasdaq Composite touched
record highs but later retreated to trade slightly negative.
Traders shared concerns about the feasibility of the Trump
agenda of tax cuts and deregulation, without taking their eye
off the expected economic growth.
"As long as we have growth, whether it is earnings or
economic data, the markets are likely to be able to take such
(political) headlines in stride," said Matt Miskin, senior
capital markets research analyst at John Hancock Investments in
Boston, referring to the Trump-Russia headlines.
U.S. manufacturing production posted its biggest increase in
more than three years in April, bolstering the view that
economic growth picked up early in the second quarter - despite
a drop to a five-month low in housing starts.
The Dow Jones Industrial Average rose 20.85 points,
or 0.1 percent, to 21,002.79, the S&P 500 lost 0.32
points, or 0.01 percent, to 2,402 and the Nasdaq Composite
added 10.33 points, or 0.17 percent, to 6,160.01.
The pan-European FTSEurofirst 300 index rose 0.08
percent and MSCI's gauge of stocks across the globe
gained 0.27 percent.
Emerging market stocks rose 0.44 percent. MSCI's broadest
index of Asia-Pacific shares outside Japan
closed 0.33 percent higher, while Japan's Nikkei rose
Oil prices were little changed as traders awaited weekly
U.S. inventory data and after Kuwait joined top producers Saudi
Arabia and Russia in support of prolonging supply cuts through
March 2018 to reduce a global crude glut.
U.S. crude rose 0.02 percent to $48.86 per barrel
and Brent was last at $51.88, up 0.12 percent on the
U.S. Treasury yields fell after the housing data added to
recent soft economic news that has raised new doubts over how
many times the Federal Reserve will raise interest rates this
Benchmark 10-year notes last rose 3/32 in price
to yield 2.3274 percent, from 2.338 percent late on Monday.
Spot gold added 0.5 percent to $1,236.89 an ounce.
U.S. gold futures gained 0.54 percent to $1,236.70 an
Copper lost 0.02 percent to $5,612.00 a tonne.
(Reporting by Rodrigo Campos, additional reporting by Scott
DiSavino, Karen Brettell, Dion Rabouin; Editing by Nick