(Corrects paragraph 3 to show that the dollar hit its lowest
against the yen since intervention, not the opposite)
* 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 dollar, meanwhile, hit its lowest against the Japanese yen
since last week's intervention. For details see;: []
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 <> 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 <> 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.
[]
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. []
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-
