* Euro hits 12-week high on data, month-end buying
* Stocks end lower on weak tech outlook, recovery woes
* Some U.S. Treasuries gain as stocks fall
(Updates with U.S. markets close)
By Walter Brandimarte
NEW YORK, July 29 (Reuters) - Global stocks fell on
Thursday as tech companies' weak outlooks fueled recovery
concerns, although the euro rose 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 economic slowdown will eventually hurt earnings.
Weak outlooks from chipmaker Nvidia Corp <NVDA.O> and
software maker Symantec Corp <SYMC.O> added to those fears,
offsetting 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>.
"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,
strategist at Ruland Research in Frankfurt.
Investors are particularly worried about Friday's report
on U.S. gross domestic product, which is expected to show the
economy lost steam in the second quarter.
Also hurting sentiment were comments from St. Louis
Federal Reserve Bank President James Bullard, who said he is
worried about the risks the United States could fall into a
Japan-style quagmire of deflation and falling investment.
"Any time you make the comparison that the U.S. might look
like Japan, that has to be considered a negative," said
Michael Sheldon, chief market strategist at RDM Financial in
Westport, Connecticut.
Global stocks measured by the MSCI All-Country World Index
<.MIWD00000PUS> dipped 0.05 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 30.72 points,
or 0.29 percent, to end at 10,467.16, while the Standard &
Poor's 500 Index <.SPX> fell 4.60 points, or 0.42 percent, to
1,101.53. The Nasdaq Composite Index <> declined 12.87
points, or 0.57 percent, to 2,251.69.
Shares of Nvidia Corp <NVDA.O> plunged 9.87 percent to
$9.13. Symantec Corp <SYMC.O> stocks sank 11.18 percent to
$13.03.
The PHLX Semiconductor Index <.SOXX> fell 1.9 percent. It
remains up 6 percent for July.
Despite Thursday's pullback, the Dow managed to stay in
positive territory for the year.
With just one trading day left in July, the major U.S.
stock indexes were up about 7 percent for the month. At
Thursday's close, the Dow was up 7.09 percent for July, while
the S&P 500 was up 6.87 percent and the Nasdaq was up 6.75
percent.
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 0.66 percent to $1.3078, its
strongest since May 4. Earlier, 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 0.67 percent at 81.637.
Against the Japanese yen, the dollar <JPY=> was down 0.54
percent at 86.92.
"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, offsetting the impact of a soft auction of seven-year
paper.
The 10-year U.S. Treasury note <US10YT=RR> gained 2/32 in
price, pushing its yield down to 2.9866 percent. The 2-year
note <US2YT=RR> was up 1/32, with the yield at 0.5855
percent.
In the commodities markets, U.S. crude oil <CLc1> rose
$1.37, or 1.78 percent, to settle at $78.36 per barrel,
boosted by the dollar's weakness.
Spot gold prices <XAU=> rose $3.38, or 0.29 percent, to
$1,166.40 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
tone.
(Additional reporting by Edward Krudy, Emily Flitter and
Nick Olivari in New York; Editing by Jan Paschal)
