Shares dip after six-month peak, oil nears $70 a barrel

NEW YORK (Reuters) – World stock markets were little changed on Tuesday after grazing a six-month high as investors took a breather following a three-day run of gains.

Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S., April 2, 2019. REUTERS/Lucas Jackson

Oil prices, meanwhile, continued to ascend amid the prospect of tightening supply due to further possible sanctions against Iran and other disruptions.

MSCI’s key gauge of global equities had rallied 1.1 percent on Monday, its best performance in three weeks, as manufacturing data in China and the United States put recession worries at bay. On Tuesday, the index slipped modestly and was down 0.13%.

Major U.S. indexes were little changed, although the blue-chip Dow Jones Industrial Average was dragged down by a slump of 12.18% in Walgreens Boots Alliance after the drugstore chain cut its 2019 profit growth forecast.

“We had a pretty good rally yesterday and I think part of it was overdone,” said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.

“We’re still in this mixed economic data range where you’re really not going to see it driving (markets) one way or the other.”

New orders for key U.S.-made capital goods slipped in February and shipments were unchanged, but data for January was revised slightly higher, which could support views that the manufacturing sector was stabilizing in the wake of the data on Monday.

The Dow Jones Industrial Average fell 110.27 points, or 0.42%, to 26,148.15, the S&P 500 lost 5.66 points, or 0.20%, to 2,861.53 and the Nasdaq Composite dropped 4.81 points, or 0.06%, to 7,824.10.

After a sluggish start, European shares were able to build some momentum heading into the close of trading, with the STOXX 600 hitting its highest intraday

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