New York/London

US stocks fell, while European equities dropped from a record as oil declined for the first time in six days and Greek bonds weakened. Emerging-market shares gained amid speculation China will boost stimulus.

The Standard & Poor’s 500 Index lost 0.2 per cent at 9:49am in New York, after closing 0.5 per cent below an all-time high. Energy shares slipped 0.8 per cent to pace declines. The Stoxx Europe 600 Index dropped 0.8 per cent. Greece’s 2017 note yield increased to the highest since the height of the euro-area debt crisis. The Bloomberg Dollar Spot Index slid for a third day. Oil in New York dropped 1 per cent after Opec reported a surge in Saudi production. The MSCI Emerging Markets Index advanced 1.4 per cent.

The dollar slipped as reports showed US housing starts rose less than forecast in March while initial jobless claims unexpectedly gained last week, adding to signs growth is losing momentum. Oil’s slide pared its gain in April to 16 per cent. Netflix Inc. rallied 13 per cent on higher subscriber numbers, while a weak sales forecast sent SanDisk Corp. lower by 7.5 per cent.

“We’re right up near the all-time highs in the S&P, and sometimes you take a breather before you break through those levels,” Matt Maley, an equity strategist at Miller Tabak & Co. in Newton, Massachusetts, said by phone. “The decline in oil is certainly having an impact. European stocks have had this unbelievable rally in a short amount of time, and now it’s overbought and due for a pullback.”

Near Records

The Stoxx 600 has rallied 20 per cent this year, topping its all-time high as gauges in Denmark, Portugal and Italy surged more than 24 per cent. The S&P500 is up 2.3 per cent, among the worst in a group of developed-market indexes tracked by Bloomberg.

The US index has been stuck in a range of 52 points since March 20 when it last neared its record, as weaker-than-forecast data from hiring to manufacturing elevated concern about earnings while also bolstering the case for keeping interest rates lower for longer.

The dollar fell against most of its major peers as the housing and jobless-claims data added to below-forecast readings for American factories, payrolls and retail sales. The US currency weakened against the euro even as Greek government debt yields rose amid efforts to avert a possible default.

“The numbers aren’t bad, just not as good as people expected,” Marc Chandler, global head of currency strategies at Brown Brothers Harriman & Co. in New York, said by phone. “Everyone knows Q1 is weak, by which I mean it’s flat. This has happened in the past five years. The dollar’s being pushed down, and then it’ll come right back.”

Bank Earnings

Goldman Sachs Group Inc. and Citigroup Inc. on Thursday reported profit that beat analysts’ estimates. Earnings at S&P500 companies probably fell 5.6 per cent in the first three months of the year and will decline each quarter through September, analysts estimate.

In Europe, chemical makers and banks led declines among 19 industry groups in the Stoxx 600, which has rallied 20 per cent this year. Germany’s DAX Index slid 1.7 per cent and Portugal’s PSI-20 dropped 1.9 per cent.

“It’s an unwinding day today, everything that has made investors money recently is in reverse mode,” Daniel Weston, Munich-based chief investment officer at Aimed Capital GmbH. “Portfolio managers are looking to lock in profits from the best performing stocks. It’s a typical risk-off day.

The Shanghai Composite Index jumped 2.7 per cent to the highest close since March 2008 and the Hang Seng China Enterprises Index of mainland shares listed in Hong Kong increased 0.5 per cent.

China Stimulus

China’s central bank will inject more cash into banks, cut the amount of reserves lenders must keep, reduce interest rates and steer money market levels lower, according to banks including Macquarie Group Ltd., HSBC Holdings Plc and Nomura Holdings Inc.

‘‘China’s rebound shows the prevailing market perception that the weak economy will spur more stimulus measures,” said Allan Yu, who helps manage about $7.5 billion as first vice president at Manila-based Metropolitan Bank & Trust Co. “The data supports the outlook that a US rate increase will come later than sooner and any adjustment will be slow and measured.”

The yield on Greece’s note due July 2017 surged 407 basis points to 28.15 per cent. S&P downgraded Greek debt on Wednesday, citing the cash-strapped country’s deteriorating economic outlook.

German Finance Minister Wolfgang Schaeuble ruled out further concessions to Greece in a Bloomberg Television interview in New York on Wednesday, saying it’s up to the Greek government to commit to the reforms needed to release aid rather than give false hopes to its people.

Spain’s 10-year yield rose four basis points to 1.31 per cent as that nation sold bonds. Italy’s 10-year yield increased seven basis points to 1.34 per cent.

Australia’s dollar surged after employment data showed the nation added more than twice the number of jobs estimated by economists. It gained 1 per cent to 77.56 US cents.

Copper for delivery in three months gained 2.1 per cent a metric ton on the London Metal Exchange. All six of the main industrial metals on the bourse advanced.