Central bank views boost dollar; Wall St. ends flat
By Chuck Mikolajczak
NEW YORK (Reuters) - The dollar reached multi-year highs against both the yen and euro on Monday, adding to gains built on the Bank of Japan's surprise stimulus announcement from last week, but equity markets dipped after weak data from China and Europe.
U.S. stocks ended flat as investors paused after a sharp rally on Friday and ahead of U.S. elections on Tuesday, although economic data pointed to a slowly strengthening economy. The benchmark S&P index briefly pushed to a record 2,024.46 at the high of the session before retreating.
"We got back to the highs in the S&P 500 and Dow rather quickly, so I think you're running into some resistance and profit-taking," said Stephen Carl, principal and head of U.S. Equity Trading at The Williams Capital Group.
An index of global equities slipped after data showing China's economy losing momentum. The MSCI all-country world equity index .MIWD00000PUS was off 0.6 percent.
China's services sector grew at its slowest pace in nine months, the National Bureau of Statistics said, as a cooling property sector weighed on demand.
Another official purchasing managers' index survey on Saturday showed factory activity in the world's second-largest economy unexpectedly fell to a five-month low in October as firms fought slowing orders and rising borrowing costs.
Final European manufacturing PMI data for October showed activity in France contracted by less than first reported, while German factory activity rebounded after a slight shrinkage in September.
The disappointing data pulled European shares lower as they retreated from a four-week high. The pan-European FTSEurofirst 300 index .FTEU3 closed down 0.9 percent at 1,340.38 after rising to as much as 1,355.16, the highest since early October. [.EU] Continued...