* Dollar index touches highest since Dec. 21
* Oil falls on China, Europe lockdowns
* Currencies vs. U.S. dollar http://tmsnrt.rs/2egbfVh
* Global asset performance in 2021 http://tmsnrt.rs/2jvdmXl
(Updates to U.S. markets close)
By Rodrigo Campos
NEW YORK, Jan 15 (Reuters) - Stock and oil prices fell on
Friday, pressured by intensifying lockdowns and weak U.S. retail
sales data, while the dollar index posted its largest weekly
gain in more than two months.
U.S. bond yields and stocks have risen recently, partly on
expectations about the rollout of coronavirus vaccines and on a
massive stimulus plan by the incoming Democratic administration.
President-elect Joe Biden on Thursday unveiled a $1.9 trillion
economic aid plan.
But vaccination campaigns have progressed more slowly than
expected and the prospect of stricter lockdowns in France and
Germany, as well as a resurgence of COVID-19 cases in China,
weighed on market sentiment.
"I feel that after all the optimism regarding vaccines, we
are now living the reality of a very slow rollout, which is
weighing heavily on business activity," said Juan Perez, senior
currency trader at Tempus Inc in Washington.
"Until we have more guarantees on the medical front, markets
will not continue to flourish despite whatever financial aid may
be on the way," Perez said.
The dollar gained ground against the euro and sterling,
while the yen was little changed.
Stocks fell but remained close to recent record highs, with
investors also digesting the prospect of rising taxes to pay for
Biden's plan.
"Spending is easy to do but the question is how are you
going to pay for it? Markets often ignore politics but they
don't often ignore taxes," said Tim Ghriskey, chief investment
strategist at Inverness Counsel in New York.
The Dow Jones Industrial Average fell 177.26 points,
or 0.57%, to 30,814.26, the S&P 500 lost 27.29 points, or
0.72%, to 3,768.25 and the Nasdaq Composite dropped
114.14 points, or 0.87%, to 12,998.50.
The pan-European STOXX 600 index lost 1.01% and
MSCI's gauge of stocks across the globe shed
0.86%.
Emerging market stocks lost 0.93%. MSCI's broadest index of
Asia-Pacific shares outside Japan closed 0.67%
lower, while Nikkei futures lost 2.01%.
Yields were also pressured lower by a weaker-than-expected
reading in U.S. retail sales.
"This morning’s disappointing retail sales figures
reinforced the idea that more stimulus will be needed," said Ian
Lyngen, head of U.S. rates strategy at BMO Capital Markets in
New York.
U.S. 10-year notes last rose 13/32 in price to
yield 1.0852%, from 1.129% late on Thursday.
Despite the weekly dip in the benchmark yield, it was set to
close a second week above 1%, a streak not seen since before the
lockdowns took hold early last year.
Oil prices fell sharply on concerns that demand would be
lower as COVID-19 continues to rage globally.
"The recent resurgence in coronavirus infections, appearance
of new variants, delayed vaccine rollouts and renewed lockdown
measures in most major OECD economies has clouded the economic
and demand recovery," said Stephen Brennock of oil broker PVM.
U.S. crude recently fell 2.73% to $52.11 per barrel
and Brent was at $54.87, down 2.75% on the day.
The dollar index rose 0.573%, with the euro
down 0.68% to $1.2073, while sterling was last trading at
$1.3585, down 0.75% on the day.
The Japanese yen weakened 0.07% versus the greenback at
103.88 per dollar.
Spot gold dropped 1.1% to $1,826.59 an ounce. Silver
fell 3.11% to $24.74.
Bitcoin last fell 7.59% to $36,164.50.
(Reporting by Rodrigo Campos; Additional reporting by Lucia
Mutikani in Washington and Sinead Carew, Karen Brettell, Jessica
Resnick-Ault and Saqib Iqbal Ahmed in New York; Editing by Nick
Zieminski, Cynthia Osterman and Sonya Hepinstall)