GLOBAL MARKETS-Stocks slide, bonds rise as data fails to inspire

                                
 * Stocks slump as prices break through key level
                                
 * Bond prices rise on lackluster data, risk aversion
                                
 * Euro stung by Ireland bank woes, weak economic data
                                
 * Oil rises above $75 a barrel on refinery shutdown
 (Adds close of U.S. markets)
                                
 By Herbert Lash
                                
 NEW YORK, Sept 23 (Reuters) - Global stocks fell and bond
prices rose on Thursday as lackluster U.S. and euro zone
economic data rekindled worries over growth prospects in the
developed world.
                                
 Gold rose to near $1,300 an ounce, ending higher for a
fourth straight day, while the euro retreated from a five-month
high against the dollar, hobbled by worries about Ireland's
economy and its troubled banking sector.
                                
 The Japanese yen, meanwhile, hit its lowest against the
dollar since last week's intervention. For details see;:
[ID:nN23202482]
                                
 U.S. stocks slumped late in the session, breaking through a
key technical level that marked the high end of the summer's
trading range. Investors had hoped the level would hold despite
low trading volume, which cast doubts about the recent rally's
stamina.
                                
 "Market technicians had been very positive on our breaking
out of that range, so falling back under it added to the
decline we saw and accelerated our losses," said John
Stoltzfus, senior market strategist at Ticonderoga Securities
in New York.
                                
 The Dow Jones industrial average <.DJI> closed down 76.89
points, or 0.72 percent, at 10,662.42. The Standard & Poor's
500 Index <.SPX> slid 9.45 points, or 0.83 percent, at
1,124.83. The Nasdaq Composite Index <.IXIC> fell 7.47 points,
or 0.32 percent, at 2,327.08.
                                
 Weakness looked to carry over to Asian equity markets. The
December futures contract that trades in Chicago for the Nikkei
225 stock index <0#NK:> slid 5 points to 9,405.
                                
 Initial claims for state unemployment benefits rose 12,000
to a worse-than-expected seasonally adjusted 465,000, the Labor
Department said, breaking two straight weeks of declines.
                                
 Sales of previously owned homes increased 7.6 percent to an
annual rate of 4.13 million units in August, a touch above
expectations. But the pace was the second-lowest in 13 years.
                                
 U.S. Treasury debt prices rose, although a bout of
corporate hedging kept price gains in check for much of the
afternoon. [ID:nN23188097]
                                
 Treasury prices continued their upward march as yields
headed lower, with the 10-year yield briefly touching a 3-week
low. Traders continued to focus on the prospects for more
quantitative easing by the Federal Reserve.
                                
 The rise in new jobless claims also helped fuel the rally,
along with overnight reports showing a slower pace of growth in
the euro zone's services and manufacturing sectors.
                                
 "The market already thinks (Fed Chairman Ben) Bernanke and
crew are going to restart their purchases of government
securities in November with the economy as it is," said Chris
Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi
UFJ in New York.
                                
 The benchmark 10-year U.S. Treasury note <US10YT=RR> was up
1/32 in price to yield 2.55 percent, after trading higher for
much of the session.
                                
 Data showing Ireland's economy shrank 1.2 percent in the
second quarter slowed the euro's upward momentum. A separate
report showing euro zone growth slowed in September also took
some shine off the euro, which traded down 0.6 percent at
$1.3319 <EUR=>.
                                
 The dollar rose against a basket of major currencies, with
the U.S. Dollar Index <.DXY> up 0.30 percent at 80.072.
                                
 Against the yen, the dollar <JPY=> fell 0.21 percent at
84.34.
                                
 Oil prices rose as gasoline futures rallied on the partial
shutdown of a ConocoPhillips' refinery in Linden, New Jersey.
Units at the Bayway refinery stopped for a month and a half to
install a new crude unit, tightening supply in the New York
Harbor hub. [ID:nN23161924]
                                
 U.S. crude for November <CLc1> delivery rose 47 cents, or
0.62 percent, to settle at $75.18 per barrel.
                                
 ICE Brent crude for November <LCOc1> rose 16 cents to
settle at $78.11 a barrel.
                                
 Gold benefited from the lackluster economic reports.
                                
 U.S. gold futures for December delivery <GCZ0> settled up
$4.20 at $1,296.30.
                                
 Silver <XAG=> hit a 2-1/2 year high at $21.23 an ounce, a
hair below its highest since 1980, on strong investment
buying.
                                
 Major markets in Asia were closed due to holidays in Japan,
China, Hong Kong and South Korea.
 (Reporting by Ryan Vlastelic, Steven C. Johnson, Robert
Gibbons, Emily Flitter and Frank Tang in New York; Writing by
Herbert Lash; Editing by Dan Grebler)