RTRS: Global stocks, oil fall as Bernanke speech on tap
(Reuters) - World stocks and oil declined on Friday as investors played down chances that Fed chief Ben Bernanke would signal further U.S. economic stimulus in a much-anticipated speech.
Gold prices gained, while the dollar slipped ahead of the talk, which Bernanke was due to deliver at 10 a.m. EDT at the Federal Reserve's annual symposium in Jackson Hole, Wyoming.
A year ago in the same place, he opened the door to a second round of quantitative easing. Although there was some belief that he would announce a third round of asset buying this year, he is not now expected to come up with a fresh dose of shock treatment for the ailing U.S. economy.
He is expected rather to acknowledge his disappointment over the pace of growth, possibly downgrade his outlook, and explain which medicines left in the Fed's cabinet are best suited to fortify the economy.
"They really want something to come out of the meeting but they're no longer expecting the kind of plan they were earlier this week," said William Larkin, portfolio manager with Cabot Money Management in Salem, Massachusetts.
Earlier the Commerce Department said U.S. gross domestic product expanded at an annual rate of 1 percent in the second quarter, downward revision of its prior estimate of 1.3 percent.
World stocks as measured by MSCI world equity index .MIWD00000PUS were down 0.5 percent.
U.S. stocks opened down slightly: the Dow Jones industrial average .DJI was down 47.91 points, or 0.43 percent, at 11,101.91. The Standard & Poor's 500 Index .SPX was down 3.72 points, or 0.32 percent, at 1,155.55. The Nasdaq Composite Index .IXIC was down 10.94 points, or 0.45 percent, at 2,408.69.
POSITION SHUFFLING AHEAD OF BEN
Still, the uncertainty about what may come kept many investors on edge.
The dollar eased .DXY as investors shuffled positions ahead of the Wyoming speech. It was last down 0.4 percent against a basket of currencies.
Some traders expected the greenback to stage a short-term bounce if Bernanke does not signal further monetary stimulus.
In the oil market, Brent crude futures extended losses ahead of Bernanke. ICE Brent October crude fell 57 cents to $110.05 a barrel.
Core euro zone government bond prices were flat to slightly higher, while the benchmark 10-year U.S. Treasury note was up 21/32 in price, with the yield at 2.16 percent, down from 2.28 late on Thursday.
(Additional reporting by Jeremy Gaunt in London and Ryan Vlastelica in New York; Editing by James Dalgleish)
