Europe stocks mixed; dollar struggles, oil gains

It was a mixed picture across European stocks, as investors digested the weakening dollar and a protectionist push from the U.S. that helped spur declines in Asian equities. The greenback slipped again, and most commodities gained.

Media and travel companies dragged on the Stoxx Europe 600 Index after the MSCI Asia Pacific posted losses earlier. Japanese shares fell as the yen traded at the strongest since September; it's one of a host of major currencies at elevated levels thanks to the dollar slump. The euro edged higher before the European Central Bank's first policy decision of 2018, and after data showed improving business confidence in Germany. The MSCI Emerging Markets Currency Index hit the strongest on record.

Dollar weakness is also boosting commodities. Bloomberg's index of raw materials is at the highest since October 2015, and gold traded at about the strongest in more than a year.

Treasury Secretary Steven Mnuchin's endorsement of a weaker dollar as a help to trade added to pressure on a greenback that's been in decline for much of the past year, although White House Press Secretary Sarah Sanders appeared to soften his comments later. Eyes now turn to the ECB, where traders will be looking for for further clues on its appetite for rolling back stimulus, and its officials' thoughts on a strengthening currency. Investors are also increasingly worried about the future of global trade as President Donald Trump pushes his protectionist agenda. Commerce Secretary Wilbur Ross suggested at Davos that the U.S. could enact more levies.

Elsewhere, the Brazilian real strengthened the most in eight months and the MSCI Emerging Markets Index climbed for a tenth day.

Earnings season is in full swing: Intel, LVMH Moet Hennessy Louis Vuitton, Starbucks and Hyundai Motor all come this week. Barring any last minute changes in Washington, Trump will join world leaders and senior executives in Davos for the annual World Economic Forum. The European Central Bank announces its rate decision on Thursday. The U.K. House of Lords is considering Prime Minister Theresa May's Brexit bill this week. The Stoxx Europe 600 Index decreased 0.1 percent as of 9:32 a.m. London time, the lowest in a week. The MSCI AllCountry World Index declined less than 0.05 percent, the first retreat in a week. The U.K.'s FTSE 100 Index rose 0.1 percent. The MSCI Asia Pacific Index decreased 0.4 percent, the first retreat in a week.

The Bloomberg Dollar Spot Index decreased 0.2 percent to the lowest in more than three years. The euro gained 0.1 percent to $1.2421, the strongest in more than three years. The British pound rose 0.1 percent to $1.4258, the strongest in 19 months. The Japanese yen increased 0.2 percent to 109.05 per dollar, the strongest in almost 20 weeks. South Africa's rand declined 0.4 percent to 11.9007 per dollar, the largest decrease in more than two weeks.

The yield on 10-year Treasuries decreased one basis point to 2.64 percent. Germany's 10-year yield declined less than one basis point to 0.59 percent. Britain's 10-year yield fell less than one basis point to 1.404 percent. Gold gained 0.1 percent to $1,359.35 an ounce, hitting the highest in almost 18 months with its sixth consecutive advance.

West Texas Intermediate crude climbed 0.7 percent to $66.06 a barrel, the highest in more than two years. LME copper rose 0.1 percent to $7,157.50 per metric ton, the highest in more than a week.