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By Chris Prentice and Amanda Cooper
NEW YORK/LONDON (Reuters) - Global shares turned lower on Monday as traders focused on U.S. inflation data and chip stocks fell, while Beijing's promise of stimulus and the sudden collapse of the Syrian government boosted oil and gold prices more than 1%.
U.S. inflation data this week could cement a December interest rate cut by the Federal Reserve at its meeting next week. China's decision on Monday to alter the wording of its stance toward monetary policy for the first time since 2010 helped global sentiment. Beijing pledged to introduce stimulus to encourage economic growth next year.
The rapid collapse over the weekend of Syrian President Bashar al-Assad's 24-year rule complicates an already fraught situation in the Middle East.
Friday's U.S. monthly employment data was strong enough to soothe any concerns about the resilience of the economy, but not so robust as to rule out a rate cut from the Federal Reserve next week.
MSCI's gauge of stocks across the globe fell 2.05 points, or 0.23%, to 871.68.
The Dow Jones Industrial Average fell 240.59 points, or 0.54%, to 44,401.93, the S&P 500 fell 37.42 points, or 0.61%, to 6,052.85 and the Nasdaq Composite fell 123.08 points, or 0.62%, to 19,736.69.
Shares of chip maker Nvidia fell 2.5% after China's market regulator said it had opened an investigation into the company over suspected violation of the country's antimonopoly law.
"In addition to being reminded that December is positive 'close to three-fourths of the time,' we have seen record equity inflows, full positioning from asset managers and the highest ever reading from the Conference Board’s survey of retail investor expectations," Morgan Stanley's chief investment officer, Lisa Shalett, said in a note.
"Complacency indicators are flashing, however, and while we appreciate technicals’ short-term validity, we encourage long-term investors to be measured in their enthusiasm," she said.
European shares closed at their highest levels in six weeks on Monday, led by mining and luxury stocks, after China's promise of renewed stimulus. The STOXX 600 index edged up 0.1%, and notched its eighth consecutive session of gains.
COULD EXPECTED FED RATE CUT BE DERAILED?
Last week's U.S. November payrolls report showed 227,000 jobs were created, compared with expectations for a rise of 200,000, while October's hurricane-distorted number was revised up.
Markets now imply an 85% chance of a quarter-point cut at the Fed's Dec. 17-18 meeting, up from 68% ahead of the jobs figures, and markets have a further three cuts priced in for next year.