Oil prices slip on doubts on production cut deal this week * USA bond yields, dollar fall from highs * Battered emerging markets win reprieve * Italian banking shares drop 3 pct on political worries * Graphic: World FX rates in 2016 By Marc Jones LONDON, Nov 28 (Reuters) - The dollar saw its biggest drop in nearly a month on Monday as a bashing for oil prices on doubts about an OPEC output cut this week left investors reversing "Trumpflation" trades that have gripped markets since the US election.
Biotechnology stocks showed a substantial move to the downside on the day, dragging the NYSE Arca Biotechnology Index down by 2.4 percent.
CURRENCIES: The euro rose to $1.0592 from $1.0587, while the dollar fell to 112.20 yen from 112.65 yen. Oil tumbled at the end of last week, while benchmark USA equity indexes racked up fresh record highs. The Financial Times quoted Steven Hall, a KPMG partner, as noting that "for the first time they are testing both severe domestic and Global scenarios, whereas previous years have focused on one or the other". Fillon, a former French prime minister, is the favorite to become president, with a flash opinion poll suggesting he would easily beat far-right National Front leader Marine Le Pen in a second round run-off. It was last at $1.0606 EUR=.
On Wall Street, consumer and financial stocks weighed on the S&P 500 after rallying last week.
Despite the losses most regional stock markets were up, extending last week's gains on bets Donald Trump's spending plans will ramp up growth in the USA economy.
More news: Former Labor Secretary Elaine Chao to be named Transportation SecretaryThe Stoxx Europe 600 fell 0.7% in the early minutes of trading with the oil and gas sector down 1.4%, while futures pointed to a 0.5% opening loss for the S&P 500.
On Friday, the FTSE 100 and CAC-40 each rose 0.2 percent while the DAX gained 0.1 percent. Shenzhen, however, was only marginally higher, while Shanghai was up 0.5 percent.
The Organization of the Petroleum Exporting Countries meets on Wednesday, while a week heavy in US economic data including a GDP revision, inflation, factory and services activity is set to climax on Friday with the monthly jobs report.
The drop in oil prices is hitting U.S. inflation expectations, which is pulling down U.S. Treasury yields and finally knocking back this lengthy dollar rally. Brent crude, used to price worldwide oils, lost another 44 cents to $47.80 per barrel in London.
OPEC WATCH: Major oil producers meet Wednesday to discuss production cuts to shore up prices, but Iran and Iraq have failed to agree to a reduction, raising jitters about the Vienna meeting's outcome. Chinese steel futures jumped almost 6 percent. The dollar-yen pair traded at 111.355 during Monday's Asian session, while the dollar's index against six major currencies eased off its 13 ½ year high, trading down 0.6 percent on the day. On Monday, the middle point of the narrow band in which the yuan is allowed to fluctuate against the dollar rose by just over 0.1 percent to 6.9042 to the dollar. Copper was little changed at $5,881.15 a tonne. Teo said the election of Donald Trump as USA president could change market conditions due to his support for US shale oil, which would add to global supply and add to downward pressure on prices. "It's a bit of a pull back in the dollar", said Societe Generale strategist Alvin Tan. "It has kind of run ahead of itself". The Kosdaq index finished up 3.02 points, or 0.51 percent, at 596.07.
