GLOBAL MARKETS-Stocks sag around globe; U.S. Treasuries rise

Reuters - UK Focus

* U.S. stock decline accelerates

* Key Wall Street indices off close to 1 percent

* Dollar slips after ECB policymaker comments

* Oil prices off 1 percent (Updates Wall Street prices, adds gold decline, quotes)

By Michael Connor

NEW YORK (Frankfurt: HX6.F - news) , April 7 (Reuters) - Wall Street stocks fell 1percent on Monday, joining a broad retreat in global equitiesmarkets from a six-year high touched last week, while U.S.Treasuries' yields moved lower.

The dollar fell against major currencies as comments fromEuropean Central Bank policymakers curbed expectations of moreeuro zone economic stimulus and boosted the euro against thegreenback.

On Wall Street, losses accelerated and the S&P 500 index oflarge-cap U.S. companies was on track for a third straightdecline and what may be its biggest three-day drop in twomonths. On Friday, the Nasdaq and S&P indices suffered theirworst drop since February.

The Dow Jones industrial average was down 147.68points or 0.9 percent, at 16,265.03, the S&P 500 lost19.5 points or 1.05 percent, to 1,845.59 and the NasdaqComposite dropped 56.667 points or 1.37 percent, to4,071.058.

Some investors worried that the declines may run on, evenas U.S. momentum shares hit hard last week steadied. Prices ofmomentum shares, or stocks in fast-growing industries, surged inrecent weeks.

"The big concern is the overall underlying weakness in somany different stocks," said Ryan Detrick, senior technicalstrategist at Schaeffer's Investment Research in Cincinnati,Ohio. "The picture isn't nearly as pretty when you look underthe hood, and you see various sectors have clearly broken down,and now it's starting to pull down on the whole entire stockmarket."

Pfizer Inc (NYSE: PFE - news) , down 3.2 percent at $31.13, addedpressure on the Dow and S&P 500. Pfizer's experimental breastcancer drug nearly doubled the time patients lived without theirdisease getting worse in a clinical trial. But overall survivalwas not shown to be statistically significant, researchers said.

Earlier in the global trading day, Japan's Nikkei fell 1.7 percent, while the FTSEurofirst 300 index oftop European shares gave up 1.2 percent at 1,336.11, down from a5 1/2-year high on Friday.

Britain's top equity index, the blue-chip FTSE 100 index, had its biggest one-day decline in a month, retreatingfrom a three-week high as a drop by house builders weighed onthe market.

The broader FTSEurofirst measure of 300 European stocks fell 1.25 percent.

The MSCI world equity index was down 0.91percent, having hit levels not seen since late 2007 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) .

U.S. Treasuries prices rose, extending last week's gains astraders reduced bets the Federal Reserve might raise 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 8/32 inprice to yield 2.6935 percent, while the five-year note US5YT=RRwas 6/32 higher, yielding 1.666 percent.

The dollar lost 0.24 percent against a basket of six majorcurrencies. 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 well below $106 a barrel to $105.34,snapping a two-day rise and falling more than 1 percent, afterLibyan rebels occupying four eastern oil ports agreed to end aneight-month blockade, raising the prospect of increased supplyto world markets.

Gold was off, with some investors taking profits after arun-up of 1 percent on Friday credited to a short-covering rallyby investors who had worried U.S. jobs data would top forecasts.Spot gold was down 0.45 percent at $1,298.30 an ounce inearly afternoon New York trading.

(Reporting by Michael Connor; Additional reporting by Sam (Paris: FR0011660836 - news)Forgione, Richard Leong and Chuck Mikolacjzak; Editing by DanGrebler)

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