* Fed's dovish outlook hurts crude, stocks
* Euro slips against dollar on lingering debt concerns
By Dominic Lau
LONDON, June 24 (Reuters) - Global equities and crude prices eased on Thursday on concerns over economic growth after the U.S. Federal Reserve's pessimistic outlook, though the dollar recovered from the previous session's losses.
Concerns over Greece were hanging over the euro zone, as the cost of protecting its government debt against default hit a record high. [
]The Fed acknowledged a faltering pace of U.S. economic recovery on Wednesday as it renewed its vow to hold benchmark interest rates exceptionally low for an extended period. [
]Its assessment followed data showing that sales of new homes in the United States fell to their lowest level ever in May and came with Europe still on the path of austerity to prevent a Greek-style debt crisis. "The negative tone on the speed and strength of the recovery from the Federal Reserve is infringing on investor's expectations and there's a sense that there will be a long period of anaemic growth," said Henk Potts, analyst at Barclays Wealth in London.
Europe's FTSEurofirst 300 <
> fell for the third day, down 0.9 percent and basic resources shares <.SXPP> shed 1.8 percent, shrugging off hopes new Australian Prime Minister Julia Gillard could compromise on a controversial mining tax.The European basis resources sector carried a one-year forward price-to-earnings of 11.37, in line with its five-year average of 11.34, according to Thomson Reuters DataStream.
World stocks measured by MSCI All-Country World Index <.MIWD00000PUS> drifted 0.1 percent lower, down for a third consecutive day.
The index has fallen 5.9 percent this year, and carried a one-year forward P/E of 11.9 versus a five-year average of 13.3, according to DataStream.
U.S. stock index futures <SPc1> <DJc1> <NDc1> lost 0.6-0.7 percent, indicating a weaker start for Wall Street, ahead of U.S. durable goods data and weekly jobless claims.
In Asia, Tokyo's Nikkei average <
> was flat as short-covering petered out, with charts showing further gains were likely to be difficult.Japan's annual export growth slowed for a third consecutive month in May in a sign that its overall economic growth could start to slow as the pace of recovery in overseas demand moderates. [
]
DOLLAR RECOVERS
The dollar <.DXY> rose 0.1 percent against a basket of currencies after losing 0.4 percent on Wednesday on the back of Fed's assessment of a faltering pace of recovery.
The euro <EUR=> was down 0.2 percent at $1.2284. The single currency has fallen 14 percent against the dollar this year.
"As the U.S. fiscal stimulus starts to wane, it brings back the deflationary argument. Together with weak U.S. data, there are reasons to be pessimistic and that cannot be a positive environment for risk," said Gavin Friend, currency strategist at National Australia Bank.
Five-year credit default swaps (CDS), an insurance-like instruments against debt default, rose to a record high of 959.5 bps, from 934 bps in New York on Wednesday, CDS monitor CMA DataVision said.
Five-year CDS on Portugal government debt rose to 335 basis points from 320.4 bps on Wednesday.
The Greek/German government bond yield spread has widened sharply this week because of expected forced selling at the end of the month by passive indexed funds after Moody's Investors Service became the second rating agency to downgrade Greece to junk earlier this month.
The spreads of Greek 10-year bond <GR10YT=TWEB> over German Bunds rose to 802 basis points (bpS) versus 792 bps at Wednesday's settlement.
September Bund futures <FGBLc1> were 29 ticks higher at 128.91, and 10-year German yields <DE10YT=TWEB> fell 3.5 bps to 2.613 percent. (Additional reporting by Simon Falush, Neal Armstrong, Kirsten Donovan and George Matlock; Editing by Toby Chopra, Ron Askew)