* Equities back further away from highs
* Dollar slips after ECB policymaker comments
* Oil prices off 1 percent (Adds Wall Street stocks drop, Treasury gains; changesdateline, previous LONDON)
By Michael Connor
NEW YORK (Frankfurt: HX6.F - news) , April 7 (Reuters) - Wall Street stocks sank onMonday, joining a broad retreat in global equities markets froma six-year high touched last week, while U.S. Treasuries' yieldsmoved lower.
The dollar fell against major currencies as comments fromEuropean Central Bank policymakers curbed expectations for morestimulus and boosted the euro against the greenback.
The S&P 500 index of large-cap U.S. companies was on trackfor a third straight decline as biotech and consumer companiesextended recent losses. On Friday, the Nasdaq and S&P indicessuffered their worst drop since February.
The S&P 500 lost 18.17 points, or 0.97 percent, to1,846.92, while the Dow Jones industrial average fell136.92 points, or 0.83 percent, to 16,275.79 and the NasdaqComposite dropped 53.512 points, or 1.3 percent, to4,074.213.
Pfizer Inc (NYSE: PFE - news) , down 2.8 percent at $31.26, addedpressure to the Dow and S&P 500. Pfizer's experimental breastcancer drug nearly doubled the amount of time patients livedwithout their disease getting worse in a clinical trial. Butoverall survival was not shown to be statistically significant,researchers said.
The Nasdaq on Friday recorded its biggest decline sinceFebruary as investors extended a recent sell-off in high-flyingand high-growth shares, mostly in the tech and biotech sectors,on fears they are over-valued. The negative sentiment spilledinto Asia on Monday, hitting Japanese tech stocks.
Japan's Nikkei fell 1.7 percent, while theFTSEurofirst 300 index of top European shares was down1.2 percent at 1,336.11, down from a 5 1/2-year high on Friday.
World equity markets had enjoyed three straight weeks ofgains as easing tensions in the Crimea region of Ukraineencouraged investors to add risks.
"Markets are overbought over the short term. We have seen adecent run after the Crimean situation cool down a little bitand now it's quite natural to see a breather from that level,"said Gerhard Schwarz, head of equity strategy at Baader Bank (Xetra: BWB.DE - news) .
The MSCI world equity index was down 0.81percent, having hit levels not seen since late 2007 on Friday.
U.S. Treasuries prices rose, extending last week's gains astraders reduced bets the Federal Reserve might increase interestrates in the first half of 2015 after a March jobs report thatmissed some traders' expectations. The selloff in Wall Streetshares also supported demand for U.S. government debt.
"After this latest payrolls number, people reached theconclusion they were too ambitious with the Fed's first ratehike," said Mike Lorizio, head of Treasuries trading at JohnHancock Asset Management in Boston.
Benchmark 10-year Treasuries were up 10/32 inprice to yield 2.6881 percent, while the five-year note US5YT=RRwas 6/32 higher, yielding 1.666 percent.
The dollar was down by 0.27 percent against a basket of sixmajor currencies. The euro rose 0.3 percent to $1.3742.
Comments from ECB policymakers Ewald Nowotny and Yves Merschon Monday suggested more monetary easing from the central bankwas not imminent, which lifted the euro against the dollar.
Nowotny said there was no need to act immediately to countereuro zone disinflation, while Mersch said that while the centralbank was drawing up plans for large-scale asset purchases, itremained some way off
"The disappointment in the jobs data on Friday has souredsentiment" toward the dollar, said David Gilmore, a partner atForeign Exchange Analytics in Essex, Connecticut
Brent crude oil fell below $106 a barrel, snapping a two-dayrise and falling more than 1 percent, after Libyan rebelsoccupying four eastern oil ports agreed to end an eight-monthblockade, raising the prospect of increased supply to worldmarkets. (Reporting by Michael Connor; Additional reporting by Sam (Paris: FR0011660836 - news)Forgione and Richard Leong; Editing by Dan Grebler)
- USA News