* MSCI world equity index eases after recent run-up
* Euro falls, dollar up on German finmin warning
* Oil backs down from 2009 high on profit-taking
By Sebastian Tong
LONDON, March 27 (Reuters) - Global shares dipped on Friday,
pausing for breath at the end of a week that saw them gain 6
percent on hopes of economic recovery while the euro extended
losses after Germany warned that fiscal irresponsibility in
Europe threatened the common currency.
Oil fell below $54 a barrel on profit-taking after touching
a 2009 high but the dollar rose, with sentiment bolstered by
Thursday's Wall Street rally which saw the Nasdaq <>
advancing to positive territory for the year-to-date.
"We have a good chance that we are in the process of
building a bottom. We can crumble back down and test the lows
even, but a good chance is that we will not make new lows," said
Petra Von Kerssenbrock, a Commerzbank technical analyst in
Frankfurt.
MSCI world equity index <.MIWD00000PUS> was 0.6 lower by
1220 GMT, having risen some 6 percent this week to its highest
level in six weeks.
The pan-European FTSEurofirst 300 index <> of top
shares waned 0.6 percent, weighed down by banks and energy
majors, but remaining on track for its third straight week of
gains -- the first time in nearly 12 months.
Emerging stocks <.MSCIEF>, which are up some 5 percent this
year, eased 0.7 percent lower.
Emboldened by recent U.S. initiatives to jumpstart stalled
bank lending, investors have seized on less dire than expected
economic data from around the world as tentative signs of a
global economic recovery.
Both France and South Korea posted fourth quarter 2008
economic contractions that were smaller than their initial
official forecasts. [] []
The United States released revised fourth-quarter GDP data
showing the economy shrinking at its fastest pace since 1982 but
its 6.3 percent contraction was better than the consensus
forecast of negative 6.5 percent in a Reuters survey of
economists. []
"In spite of the underlying concerns that we are in the
midst of a bear market rally, the markets continue to perform
robustly. It is noticeable that venerable banks such as UBS are
claiming that institutional clients are now buying more stocks
than they are selling," said Chris Hossain, senior sales manager
at ODL Securities.
EURO WARNING
The dollar reversed early day losses to climb over 1 percent
against a basket of major currencies <.DXY>.
The greenback was also supported by comments from senior
Japanese and Russian officials that the dollar's status as
global reserve currency would unlikely be discussed at next
week's Group of 20 leaders' meeting in London.
The euro hit session lows versus the dollar <EUR=> after
Germany's Peer Steinbrueck said the single currency would come
under threat if euro zone members did not adhere to their shared
agreement guiding their fiscal policy. []
The minister's warning came amid the release of weaker than
expected euro zone industrial orders and German inflation.
<ECON>
The European Central Bank is expected to cut interest rates
by 50 basis points to 1 percent next Thursday and may also
announce further liquidity boosting measures. []
Meanwhile, U.S. crude oil <CLc1> fell by more than $1 a
barrel as poorer-than-expected Japanese retail sales figures and
U.S. jobless data encouraged profit-taking.
Oil has gained more than 34 percent since mid-February on
rallying stock markets and tightening supply from the
Organisation of Petroleum Exporting Countries (OPEC).
Emerging sovereign debt spreads <11EMJ> were 1 basis point
wider to trade at 623 bps over U.S. Treasuries, while the June
bund futures <FGBLc1> traded up 45 ticks.
U.S. Treasury debt prices edged higher with the market
awaiting the second purchase of government bonds by the Federal
Reserve later in the day.
(Additional reporting by Farah Master and Atul Prakash; Editing
by Andy Bruce)
