(Reuters) – Global stocks slipped from 3-1/2 month highs on Wednesday and government bond yields fell after weak Japanese exports data revived worries about world economic growth.
Investors were on edge as Greece was beginning a series of meetings with European officials aimed at securing more time to push through reforms, but uncertainty lingered over the effectiveness of Greek Prime Minister Antonis Samaras’ European charm offensive.
U.S. stocks retreated a day after the S&P 500 index hit a four-year intraday high after Japan said exports slumped the most in six months in July as shipments to Europe and China tumbled, adding to concerns over global demand.
“Yesterday we pierced the highs and ran out of steam, so people took that as a sign of exhaustion,” said Ken Polcari, managing director at ICAP Equities in New York. “Today you get negative news out of Japan, Greece coming back to the table … people are just looking for catalysts to take some money off after this kind of stealth rally that we’ve had.”
The MSCI global share index .MIWD00000PUS fell 0.6 percent to 324.37 as traders locked in gains sparked by hopes of central bank actions to contain the debt crisis and stimulate growth. The index hit its highest level since early May on Tuesday,
On Wall Street, the Dow Jones industrial average .DJI was down 61.20 points, or 0.46 percent, at 13,142.38. The Standard & Poor’s 500 Index .SPX fell 4.08 points, or 0.29 percent, at 1,409.09. The Nasdaq Composite Index .IXIC was down 4.86 points, or 0.16 percent, at 3,062.40.
European shares fell from a recent 13-month high, with the FTSEurofirst 300 index of European shares .FTEU3 ending 1.2 percent lower.
Investors flocked to safe-haven U.S. Treasuries, pushing 30-year long bonds 1 point higher to yield 2.85 percent. Benchmark U.S. 10-year notes were trading 16/32 higher in price to yield 1.7466 percent.
“The Treasury market is trading higher this morning as at least a few investors still believe that the economy may have some rough winds ahead, and that the global economy might derail the optimism,” said Kevin Giddis, head of fixed income capital markets at Morgan Keegan in Memphis, Tennessee.
German Bund futures rose to 142.53.
Investors awaited the minutes of the U.S. Federal Reserve’s most recent meeting, due later on Wednesday, and will parse them for clues on whether the central bank is gearing up for more stimulus for the economy as early as its September meeting.
The euro was little changed at $1.2469, not far from a seven-week high of $1.2488 on Reuters data on Tuesday.
Greek Prime Minister Antonis Samaras meets Eurogroup chief Jean-Claude Juncker on Wednesday and German Chancellor Angela Merkel and French President Francois Hollande later this week. He is expected to broach the idea of giving Greece more time to implement budget cuts.
But German Chancellor Angela Merkel said there will be no decisions at Friday’s meeting with Greece.
GOOD NEWS PRICED IN
Stocks have rallied lately on hopes the European Central Bank will soon start buying Spanish and Italian government bonds to lower borrowing costs, but some analysts said further gains could be limited.
The ECB holds its next policy meeting on September 6, the German constitutional court rules on September 12 on the euro zone’s permanent bailout fund, and European finance ministers meet on September 14 and 15.
“It’s going to be fascinating after the ECB meeting to see what direction the markets take; we’ve priced in a lot of the good news already, so I certainly don’t think we’ll see it rally much), unless we get surprises on the upside,” said Ben Le Brun, a Sydney-based market analyst at OptionsXpress.
Oil prices recovered early losses after data showed a sharp decline in crude stockpiles in the United States. Brent crude advanced 7 cents to $114.71 after hitting a session low of $113.53. U.S. crude rose 28 cents to $97.12 per barrel.
Platinum rose to its highest since early May and was set for its biggest one-week gain in 10 months after signs of spreading unrest in top producer South Africa ignited concern among investors over supply.
Spot platinum was up at $1,517.99 an ounce , having risen earlier to a high of $1,524.50. The price has risen by 9.2 percent since Wednesday last week, making this the largest one-week rally since October 2011.
Spot gold rose to $1,639.80 an ounce.
(Additional reporting by Rodrigo Campos, Chris Reese and Nick Olivari; Editing by)
