* Euro hits 12-week high on data, month-end buying
* Stocks erase early gains as recovery worries weigh
* Some U.S. Treasuries gain as stocks fall
(Updates with European markets close)
By Walter Brandimarte
NEW YORK, July 29 (Reuters) - Global stocks fell on
Thursday as concerns about the recovery offset robust
earnings, although the euro surged to a 12-week high against
the dollar on better-than-expected European economic data.
Stocks erased initial gains, encouraging investors to buy
safe-haven U.S. Treasuries, as investors worried that an
expected U.S. economic slowdown will eventually hurt
earnings.
That fear overshadowed a batch of strong quarterly
earnings from major companies, including Exxon Mobil Corp
<XOM.N>, Rolls Royce Plc <RR.L> and BAE Systems Plc<BAES.L>.
Government data showing that U.S. initial jobless claims
fell more than expecteed last week gave only temporary support
to Wall Street. []
"Most of the numbers kicked in a lot better, but there is
still a lack of confidence in the sustainability of economic
growth and the sustainability of the earnings stream being
extended into 2011," said Heino Ruland, a strategist at Ruland
Research in Frankfurt.
Global equities measured by the MSCI All-Country World
Index <.MIWD00000PUS> slipped 0.14 percent. In Europe, the
FTSEurofirst 300 <> index of top shares fell 0.38
percent to end at 1,046.90 points, having earlier risen to a
high of 1,060.96 points.
The Dow Jones industrial average <> lost 40.71 points,
or 0.39 percent, to 10,457.17., while the Standard & Poor's
500 Index <.SPX> declined 6.24 points, or 0.56 percent, to
1,099.89. The Nasdaq Composite Index <> dropped 18.90
points, or 0.83 percent, at 2,245.66.
Investors unloaded some chipmakers' shares on Thursday, in
response to drastically reduced outlooks from Nvidia Corp
<NVDA.O> and Symantec Corp <SYMC.O>, which raised questions
about the demand for tech components and prompted a broad
sell-off on Wall Street.
EURO BRIEFLY POPS ABOVE $1.31
The euro climbed to a 12-week high against the dollar,
however, as month-end demand and supportive data helped push
the single currency above a key technical barrier.
The advance of the euro started early in the session after
a jump in euro-zone economic sentiment to a 28-month high and
a decline in German unemployment. []
[]
The euro <EUR=> rose 0.56 percent to $1.3065, its
strongest since May 4, albeit it briefly traded at $1.3106.
The dollar also declined across the board after California
declared a state of emergency over its finances on
Wednesday.
The greenback was down against a basket of major
trading-partner currencies, with the U.S. Dollar Index <.DXY>
off 0.68 percent at 81.623.
Against the Japanese yen, the dollar <JPY=> was down 0.84
percent at 86.66.
"Economic resilience in Europe, particularly in Germany,
despite the formidable sovereign credit headwinds, continues
to fuel an unwinding of bets against the euro and push it
higher across the board," said Omer Esiner, chief market
analyst at Commonwealth Foreign Exchange in Washington, D.C.
SOME T-NOTES AND COMMODITIES RISE
Some U.S. Treasury debt prices turned higher as stocks
fell and ahead of the government's auction at 1 p.m. of
seven-year notes.
The five-year U.S. Treasury note <US5YT=RR> was up 5/32,
yielding 1.701 percent, while the seven-year Treasury note
<US7YT=RR> was up 3/32, yielding 2.382 percent.
The benchmark 10-year U.S. Treasury note <US10YT=RR>,
though, was down 3/32, with the yield at 2.997 percent. The
2-year U.S. Treasury note <US2YT=RR> was unchanged, with the
yield at 0.610 percent.
In the commodities markets, U.S. light sweet crude oil
<CLc1> rose $1.09, or 1.42 percent, to $78.08 per barrel, .
Spot gold prices <XAU=> rose $1.15, or 0.10 percent, to
$1,164.20 an ounce.
India, one of the world's largest gold consumers, bought
physical gold at attractive prices and kept gold off
Wednesday's three-month lows as the country stocked up on the
precious metal before festivals.
Copper hit a three-month high as a weaker dollar and
copper inventories data revived buyers' interest. Benchmark
copper <CMCU3> on the London Metal Exchange closed at $7,231 a
tonne.
(Additional reporting by Vivianne Rodrigues in New York and
Blaise Robinson, Naomi Tajitsu and Will James in London;
Writing by Walter Brandimarte; Editing by Jan Paschal)
