Oil down, stocks mixed as Japan slips into recession

(Reuters) - Oil prices fell and global equity markets were mixed on Monday after news that Japan unexpectedly slipped into recession in the third quarter renewed concerns about world growth.

But two blockbuster acquisitions and anticipation of more European stimulus capped declines and helped lift the S&P 500 to a record closing high on Wall Street.

The Japanese yen steadied against the U.S. dollar, pulling back from a fresh seven-year low, as the economic data set the stage for Prime Minister Shinzo Abe to delay an unpopular sales tax hike and call an election two years before he has to.

Japan's economy shrank an annualized 1.6 percent after a 7.3 percent slide in the second quarter, when a sales tax hike hit consumer spending. Analysts polled by Reuters had expected 2.1 percent growth in the third quarter, but consumption and exports remained weak, saddling companies with big inventories.

Tokyo's Nikkei index lost 3 percent, its biggest one-day drop since August, and Wall Street closed mixed after a choppy session. Brent oil initially fell more than $1 toward $78 a barrel as Japan is the world's No. 4 crude importer.  Read More