Wall Street stocks finish with sudden dip

Stocks on Wall Street gave up modest gains to turn lower in the final minutes of trading session, as financials and materials sectors joined consumer and tech stocks in the red.

Earlier, investors had been encouraged by economic reports that provided fresh signs that the economic recovery was continuing. Consumer spending posted its biggest increase since October, rising by 0.7% in February, while personal income rose by 0.3%.

The savings rate, meanwhile, slid to 5.8%. Economists surveyed by Dow Jones Newswires had estimated spending would climb by 0.6% and incomes would increase by 0.4% in February.

Separately, pending sales of existing homes rose 2.1% in February, surprising economists who had expected a 0.2% rise.

At the close (9am NZT), Dow Jones Industrial Average dropped 21.80 points, or 0.2%, to 12,198.79 after being 28 points above the line mid-afternoon.

The Nasdaq Composite fell 0.4% to 2730.68 and the S&P 500 index was down 0.3% to 1310.28.

The telecommunications sector led the S&P 500 higher after RW Baird said it has "increased confidence" that AT&T's proposed merger with T-Mobile USA will pass regulatory muster, helping AT&T shares rise 2.2%.

Baird also said the deal could "benefit meaningfully" Verizon Communications, which was up 1.6%; Metro PCS Communications, up 1.5%; and Leap Wireless, up 4.7%.

Other markets: Japan falls as nuclear fears rise
In Asia, Japanese shares fell as high levels of radioactivity hindered work at the damaged Fukushima nuclear power facility.

Hong Kong and Taiwanese stocks lost ground after some earnings reports fell short of estimates. Chinese and Indian stocks advanced, driven by hopes for strong corporate earnings.

The Nikkei Stock Average fell 0.6% to end at 9478.53 as repair crews at the troubled nuclear power facility struggled to make headway amid news that radioactivity levels in a pool of water inside one of the buildings had reached 100,000 times the normal level.

China's Shanghai Composite index rose 0.2% to 2,984.01, Korea's Kospi inched up 0.1% to 2,056.39 and India's Sensex rose 0.7% to 18943.14.

Going the other way, Australia's S&P/ASX 200 slipped 0.2% to 4,733.6, Hong Kong's Hang Seng index gave up 0.4% to 23,068.19 and Taiwan's Taiex shed 0.7% to 8,553.06.

European stocks closed a touch higher with well-received US economic data helping to offset falls in the basic resources and auto sectors.

The Stoxx Europe 600 index ended up 0.1% at 276.24. The UK's FTSE 100 finished up 0.1% at 5904.49 and France's CAC-40 closed 0.1% higher at 3976.95. But Germany's DAX fell 0.1% to 6938.63 on concerns over Japanese supply shortages hindering car manufacturers.

Commodities: Oil, gold down
Oil futures fell as rebel forces in Libya issued a shorter-than-anticipated timetable for the resumption of exports. A spokesman for the rebel government in eastern Libya said shipments, which had fallen to almost zero, could resume "in less than a week" and production could "easily" be raised to about 300,000 barrels a day.

Light, sweet crude for May delivery traded 80USc, or 0.8%, lower at $US104.60 a barrel in New York after falling as low as $US103.60. Brent crude on the ICE futures exchange traded just a cent higher at $US115.60 a barrel.

Gold futures slumped on stronger-than-expected US consumer-spending data. The most actively traded contract, for April delivery, was down 0.9%, or $US12.90, at $US1413.30 an ounce in New York.

Currencies: Euro recovers on interest rate talk
The euro rose, reversing earlier losses, as the anti-inflationary bias of European Central Bank President Jean-Claude Trichet fed expectations of higher euro-zone interest rates.

Last week, the euro came under selling pressure after the European Union summit adjourned without a resolution to its sovereign-debt woes and Portugal's government was toppled by the failure of austerity measures.

The euro changed hands at $US1.4098, rising from session lows at $US1.4021, and from $US1.4074 late on Friday.

The yen was weaker as Japan's nuclear crisis appeared to worsen and expectations of repatriation subsided.

The US dollar traded at its highest levels since the G-7 intervention against the yen at ¥81.70 from ¥81.47 late on Friday, while the euro bought ¥115.15 from ¥114.67.

The UK pound traded at $US1.6022 from $US1.6019, while the dollar bought 0.9175 Swiss franc from 0.9206 franc.