(Corrects to show gold near a five-month high, not at fresh
* Graphic: World FX rates in 2017 tmsnrt.rs/2egbfVh
* Safety bid sends gold to near five-month high, bonds rally
* Europe stocks edge up after Asia dips
* Wall Street expected to open lower
* Emerging market stocks on worst run of 2017 so far
* Tighter French vote a flashback to Brexit, Trump win
* Oil reverses gains as U.S. supply concerns return
By Marc Jones
LONDON, April 11 Nervous investors sought
shelter in gold, Treasuries and the yen on Tuesday as growing
tensions over Syria put the U.S. administration and Russia on a
European shares edged higher, reversing early falls, but
Wall Street looked set to open lower, according to index futures
, as uncertainty over looming French presidential
elections also simmered.
U.S. Secretary of State Rex Tillerson carried a unified
message from world powers to Moscow, denouncing Russian support
for Syria, after a meeting with foreign ministers of the Group
of Seven major advanced economies and Middle East allies.
Western countries blame Syrian President Bashar al-Assad for
last week's deadly gas attack. U.S. President Donald Trump
responded by firing cruise missiles at a Syrian air base.
Russian President Vladimir Putin has stood by Moscow's ally
Assad, who denies blame.
Gold was taking a run at Friday's highest level since
November, emerging market stocks were on their worst
run of the year so far, while the euro fell to a
four-month low versus a broadly stronger Japanese yen.
"It's a relatively modest reaction but there is a lot of
geopolitical risk in global markets at the moment," said TD
Securities European head of currency strategy Ned Rumpeltin.
"There is Syria, there is more uncertainty about the U.S.
economy after relatively weak jobs numbers and we have French
elections coming up."
The latest polls from France are providing another twist in
the race for the presidency, with far-left candidate Jean-Luc
Melenchon making ground against the rest of the pack before the
first round of voting on April 23.
This has raised the possibility that Melenchon could square
off against far-right leader Marine Le Pen - both of whom are
eurosceptics - in the election's decisive second round in May.
German Bunds yields dipped below 0.20 percent for the first
time in more than five weeks, before edging higher, while French
yields hit a one-week high of 0.96 percent leaving
the gap between the two - a key gauge of investors' concerns -
at its widest in six weeks.
"After Britain's Brexit referendum and the U.S. presidential
election surprised markets in 2016, could this event do the
same?," Mark Burgess, global head of equities at Columbia
Threadneedle in London, wrote in a note.
Then pan-European STOXX 600 share index eked out
gains of 0.1 percent, led higher by miners as the gold
price rose. MSCI's main index of Asia-Pacific shares, excluding
Japan fell 0.2 percent. Emerging market shares
were on track for their first four-day losing streak of 2017.
Gold, sought at times of global tension as a safe
place to store wealth, last traded up 0.3 percent on the day at
almost $1,258 an ounce. The precious metal hit a five-month high
above $1,270 on Friday after the U.S. missile strike on
The dollar fell 0.1 percent against a basket of other major
currencies. The greenback weakened 0.4 percent to 110.53
yen and 0.2 percent to $1.0616 per euro. Sterling
rose 0.2 percent to $1.2441.
Oil retreated from five-week highs hit earlier in the day as
concerns about rising U.S. shale production offset a shutdown at
Libya's largest oilfield over the weekend and the U.S. strikes
against Syria that had supported prices.
Global benchmark Brent fell 4 cents to $55.94,
breaking a six-session winning streak.
For Reuters Live Markets blog on European and UK stock
markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets
(Additional reporting by Kit Rees, John Geddie, Ritvik Carvalho
and Nigel Stephenson in London; Editing by Keith Weir and Pritha