GLOBAL MARKETS-Stocks, dollar waver ahead of G20 meeting

* U.S. dollar on track to snap five-week losing streak

* Wall Street zigzags, European shares edge lower

* Oil rises above $81 on dollar; gold steadies

* U.S. Treasuries edge lower
(Updates with opening of U.S. markets, changes byline,
dateline; previous LONDON)

By Herbert Lash

NEW YORK, Oct 22 (BestGrowthStock) – World stocks and the U.S.
dollar wavered on Friday before a meeting of the Group of 20
leading economies that is keeping markets choppy and traders
skittish as they take profits after this week’s run-up.

Uncertainty about the outcome of the meeting of G20 finance
ministers who seek a common path to manage global trade
prompted some investors to moderate their dollar-selling until
the gathering in South Korea ends this weekend.

Wall Street stocks were little changed and European shares
edged lower from six-month highs as the dollar rose slightly
and was on track to snap a five-week losing streak against
major currencies.

U.S. Treasury Secretary Timothy Geithner said in a letter
to fellow G20 finance chiefs that countries should refrain from
currency policies designed to gain a competitive edge and
should aim instead to contain trade imbalances. For details see

Canada said it supported the proposals. However, developing
economies, such as China, may cool to the idea of letting their
currencies strengthen if the U.S. Federal Reserve embarks on an
expected new program to boost money supply.

“It’s unlikely the G20 meeting will produce any substantial
clarity regarding the direction of currencies. It will not
prevent the U.S. Federal Reserve from announcing a new round of
quantitative easing,” said UniCredit analyst Tammo Greetfeld.

While traders would not rule out another lurch lower for
the dollar, which fell about 7 percent against currencies over
the past month, they said large bets against the U.S. currency
pointed to a correction.

The dollar rose slightly against major currencies, with the
U.S. Dollar Index (.DXY: ) up 0.14 percent at 77.538 and is up
about 0.4 percent this week, its first weekly gain since

The euro (EUR=: ) was barely changed against the dollar at
$1.3915, and against the Japanese yen, the dollar (JPY=: ) was up
0.01 percent at 81.35.

“The dollar has fallen quite rapidly over the last month or
so and positions are somewhat extended. We saw the tide turning
a bit this week,” said Nick Bennenbroek, currency strategist at
Wells Fargo in New York.

The Dow was down but the Nasdaq and S&P were slightly

The Dow Jones industrial average (.DJI: ) was down 21.27
points, or 0.19 percent, at 11,125.30. The Standard & Poor’s
500 Index (.SPX: ) was up 0.53 points, or 0.04 percent, at
1,180.79. The Nasdaq Composite Index (.IXIC: ) was up 8.00
points, or 0.33 percent, at 2,467.67.

Oil prices rose above $81 a barrel as positive German data
stoked commodities buying. [ID:nSGE69L08A]

U.S. crude futures (CLc1: ) were up 56 cents at $81.12 a
barrel, while ICE Brent (LC0c1: ) in London rose 57 cents to
$82.40 a barrel.

U.S. government debt prices fell slightly. [ID:nN22341677]

The benchmark 10-year U.S. Treasury note (US10YT=RR: ) was
down 2/32, with the yield at 2.5487 percent.

Gold prices steadied, recovering much of their losses that
took them to 2-1/2 week lows earlier in the session.

Spot gold prices (XAU=: ) rose slightly to $1,323.35 an

Gold investors were wary whether any clear agreement to
tackle currency imbalances would be reached at the G20 meeting.

Japan’s Nikkei share average edged up 0.4 percent in thin
trade (.N225: ), while the MSCI Asia Pacific ex-Japan index was
largely unchanged on the day (.MIAPJ0000PUS: ).
(Reporting by Rodrigo Campos, Steven C. Johnson and Richard
Leong in New York and Kirsten Donovan, Atul Prakash, Emma Farge
and Jan Harvey in London; Writing by Herbert Lash; Editing by
Kenneth Barry)

GLOBAL MARKETS-Stocks, dollar waver ahead of G20 meeting