World stocks index dips after breaking record, oil near 2-1/2-year high

A global rally in stocks paused on Tuesday, halting a nine-day advance that had sent the most widely tracked index of world stock markets to record highs.

All three of Wall Street`s major indexes dipped in U.S. afternoon trading, sending the MSCI 47-country `All World` index <.miwd00000pus> down slightly after it had hit record highs above 500 points after Japan`s Nikkei <.n225> notched its best level since 1992 and Germany`s DAX <.gdaxi> scored a record high. The index is up nearly 20 percent for the year to date.

"You`ve had almost a perfect backdrop for equities," said Pictet Asset Management`s global strategist Luca Paolini. "You have acceleration in nominal growth, earnings are between 10-15 (percent higher) globally and whatever you look at is pretty much in double digits."

After hitting all-time highs shortly after the opening bell, the Dow Jones Industrial Average <.dji> fell 11.21 points, or 0.05 percent, to 23,537.21, the S&P 500 <.spx> lost 2.8 points, or 0.11 percent, to 2,588.33 and the Nasdaq Composite <.ixic> dropped 24.31 points, or 0.36 percent, to 6,762.13.

Financial stocks <.spsy> led the U.S. market lower, with the S&P 500 financial sector losing 1.2 percent, the largest decline of any sector. U.S. Treasury yields hit a two-week low.

Oil prices fell slightly after posting the biggest rise in six weeks following the Saudi crown prince`s move to tighten his grip on power and crank up tensions between the kingdom and Iran.

U.S. crude fell 0.28 percent to $57.19 per barrel and Brent crude futures were last at $63.73, down 0.84 percent after touching a peak of $64.65.

The dollar was also on the move amid signs of more change at the Federal Reserve, while President Donald Trump`s Republican party pushes ahead with its tax cut program.

The dollar index <.dxy> rose 0.24 percent, with the euro down 0.28 percent to $1.1576 - the single currency`s lowest since mid-July. The Japanese yen weakened 0.23 percent to 113.97 per dollar , while sterling was last trading at $1.3153, down 0.13 percent on the day.

The Mexican peso lost 0.83 percent to 19.17 pesos to the U.S. dollar . The Canadian dollar fell 0.61 percent versus the greenback at C$1.28 per dollar.

Benchmark 10-year notes last rose 2/32 in price to yield 2.3127 percent, from 2.32 percent late on Monday.

The 30-year bond last rose 12/32 in price to yield 2.7778 percent, from 2.796 percent late on Monday.

Germany`s 10-year bond yields held near two-month lows at 0.338 percent after the European Central Bank firmed up its plans to reinvest the proceeds of its 2.5 trillion euro stimulus program. [GVD/EUR]

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)