* Safe-haven demand lift bonds, yen, other low-risk assets
* Gold prices reach one-month peak before hitting resistance
* Oil market flounders on oversupply worries despite OPEC
(Updates market action, changes dateline, previous LONDON)
By Richard Leong
NEW YORK, May 30 World stock prices softened on
Tuesday on concerns about the political outlook in Europe and
U.S. economic growth, and nervous investors piled into yen and
low-risk U.S. and German government bonds.
Oil prices declined on worries about global oversupply
despite OPEC's pact last week to extend its crude output cut
until the first quarter of 2018.
Gold rose to a one-month high of $1,270 an ounce on
safe-haven demand before it ran out of steam.
"There have been some softness in U.S. economic data, and
there are some less market-friendly policies in the U.S. on the
margin," said Stephen Wood, chief market strategist with Russell
Investments in New York.
The MSCI world equity index, which tracks
shares in 45 nations, fell 0.45 points, or 0.1 percent, to
On Wall Street, the Dow Jones Industrial Average fell
34.01 points, or 0.16 percent, to 21,046.27, the S&P 500
lost 2.89 points, or 0.12 percent, to 2,412.93 and the Nasdaq
Composite dropped 2.76 points, or 0.04 percent, to
Recent U.S. economic reports have supported a growing view
that the world's biggest economy is not recovering from an
anemic first quarter as vigorously as some traders had thought.
Data released on Tuesday showed U.S. consumer confidence
fell in May and a gauge of core U.S. inflation retreated on a
The lack of progress on tax cuts and other stimulus measures
from Washington has also weighed on the outlook for company
profits and broader economic activity, analysts said.
However, most Federal Reserve policymakers have not backed
away from their expectations of two more rate increases by the
end of 2017 as they see the U.S. economy near full employment
and are confident inflation would reach its 2-percent goal.
In Europe, elections in Italy may now come as early as
September, after the 5-Star Movement became the fourth big party
to back a switch to a proportional electoral system.
Greece's debt problems also continued to simmer after it
failed to reach a deal on its next installment of its bailout
program earlier this month.
Europe's broad FTSEurofirst 300 index dropped 0.20
percent at 1,533.88.
With jitters about the United States and Europe, the yen
strengthened against the dollar and euro. It was up 0.2 percent
at 111.00 yen per dollar, and up 0.1 percent at 124.09
yen per euro.
Safety bids lowered 10-year U.S. Treasury yield
to 2.229 percent and pinned 10-year German yield at
In commodities, Brent crude was last down $0.76, or
1.45 percent, at $51.53 a barrel. U.S. crude was last
down $0.51, or 1.02 percent, at $49.29 per barrel.
Spot gold prices were last down $3.84 or 0.30
percent, to $1,262.76 an ounce.
(Reporting by Marc Jones, Patrick Graham in London and Nithin
Thomas Prasad in Bengaluru; Editing by Richard Lough and Nick