ALSO READGlobal stocks fall on U.S. tax reform doubts, May's woes hit sterling World stocks lower on U.S. tax reform uncertainty, May's woes rattle sterling Global markets: Sterling slips on election fears, conflicting China signals weigh on stocks Global markets: Sterling slips on election fears, downbeat China PMI weighs on stocks Global markets: Stocks hit new peaks, dollar gains on economic optimism
By Sinead Carew
NEW YORK (Reuters) - World stock markets were down on Monday amid uncertainty over the fate of U.S. tax reform efforts, while Britain's pound fell on growing concerns about the future of Prime Minister Theresa May.
U.S. stock indexes made little ground. Some investors sought bargains after a few days of losses while others were put off by a dividend cut from heavyweight General Electric
Investors were waiting for any signs of compromise on U.S. tax policy after U.S. Senate Republicans on Thursday unveiled a plan that would cut corporate taxes a year later than a rival House of Representatives' bill.
"What the market seems to be focussed on is if and when tax reform will be agreed on by Republicans in both the Senate and the House and how it'll fare in Congress," said Ryan Larson, head of U.S. equity trading at RBC Global Asset Management in Chicago.
The Dow Jones Industrial Average <.DJI> rose 35.76 points, or 0.15 percent, to 23,457.97, the S&P 500 <.SPX> gained 3.16 points, or 0.12 percent, to 2,585.46 and the Nasdaq Composite <.IXIC> added 8.21 points, or 0.12 percent, to 6,759.15.
The pan-European FTSEurofirst 300 index <.FTEU3> lost 0.53 percent and MSCI's gauge of stocks across the globe <.MIWD00000PUS> shed 0.25 percent and was on track for a third straight day of declines after hitting an intraday record high on Thursday.
"That just highlights some of the internal weakness that the Conservative party has within its own self and I think that's going to undermine the Brexit negotiations going forward," said Sireen Harajli, foreign exchange strategist at Mizuho in New York. [L8N1NJ5BU]
The dollar edged higher against a basket of other major currencies on Monday, recovering ground after logging a 0.6 percent decline last week. It <.DXY> rose 0.11 percent, with the euro
U.S. Treasury two-year note yields hit a fresh nine-year high as the yield curve resumed its flattening, with investors pricing in a U.S. Federal Reserve interest rate hike in December. The two-year yield
Oil prices held steady in a tight range Monday after briefly testing lower, with support from Middle East tensions and record long bets by fund managers balanced by rising U.S. production. [nL3N1NJ1BB]
A purge of Saudi Arabia's leadership by Crown Prince Mohammed bin Salman has raised concerns about political stability in the region's largest oil producer.
(Additional reporting by Saqib Iqbal Ahmed, Jessica Resnick-Ault, Gertrude Chavez-Dreyfuss in New York, Dhara Ranasinghe and Saikat Chatterjee in London, Hideyuki Sano in Tokyo; Editing by John Stonestreet and Chizu Nomiyama)