Gold held near record highs, eyeing a breach of $1,300 an ounce, while the weak economic data boosted US and German government securities prices on growing speculation the Federal Reserve would buy debt to aid the US economy.
US and European shares fell on a rise in US jobless claims, but some of the losses were capped after data on existing-home sales.
MSCI’s all-country world stock index fell 0.3 percent, while the Nasdaq Composite index rose as pharmaceuticals and technology stocks led gains. The Dow and S&P 500 were little changed.
The Dow Jones industrial average was down 11.05 points, or 0.10 percent, at 10,728.26. The Standard & Poor’s 500 Index was down 1.70 points, or 0.15 percent, at 1,132.58. The Nasdaq Composite Index was up 7.62 points, or 0.33 percent, at 2,342.17.
“Equities have been behaving as if the economy was moving stronger, which is not happening. I think we are in a trading range, but short-term the markets are going to shed this belief of a stronger recovery,” Subodh Kumar, chief investment strategist at Subodh Kumar & Associates in Toronto.
New US claims for unemployment benefits rose unexpectedly last week, boosting risk aversion because of the continued labor market weakness.
US existing-home sales rose 7.6 percent to an annual rate of 4.13 million units in August, according to the National Association of Realtors. While sales rose last month, the pace was still the second lowest in 13 years.
Christopher Low, chief economist at FTN Financial in New York, said the data needed to be put in perspective after a 27 percent drop in July.
“The data confirms what we already know, which is the expiration of the first-time homebuyer’s tax credit has hurt both new and existing sales,” Low said.
Oil also recouped some losses after the housing data suggested the housing slide may have bottomed. Oil fell to just above $74 a barrel after fuel inventories swelled to record levels.
US light sweet crude oil fell 26 cents to $74.45 a barrel.
The dollar was up against major currencies, with the US Dollar Index up 0.19 percent at 79.983 from a previous session close of 79.830.
The euro was down 0.42 percent at $1.3343, and against the Japanese yen, the dollar was down 0.19 percent at 84.36.
The benchmark 10-year US Treasury note was up 7/32 in price to yield 2.53 percent.
Major markets in Asia were closed due to holidays in Japan, China, Hong Kong and South Korea.
