Around the World's Markets: New York

STOCKS FELL for a second day as the dollar dropped against the yen and euro, prompting investors to shift money out of US assets. Alcoa, the aluminium group, led the Dow lower after it agreed to buy Reynolds Metals.

The Dow lost 27.54 points, or 0.3 per cent, to 10,963.84, clawing back a 118-point loss. The S&P 500 dropped 9.26, or 0.7 per cent, to 1,323.58. The Nasdaq Composite declined 36.34 points, or 1.4 per cent, to 2,621.39, its biggest drop since 4 August.