* Global stocks slide on Europe debt unease, China move
* Euro rises on hopes an Irish aid package is near
* Oil falls as investors weigh China's move on economy
(Updates with U.S. markets, changes byline, dateline, previous
LONDON)
By Herbert Lash and Michel Rose
NEW YORK/LONDON, Nov 19 (Reuters) - World stocks and
commodity prices fell on Friday after China moved to slow its
economy but anxious investors held out hope for an Irish
bailout that would bolster the appeal of risky assets.
Wall Street opened lower and major European stock indexes
were off more than 1 percent on the prospect that China's order
for lenders to lock up more money with the central bank would
cut demand from the world's growth engine. For details see:
[]
Concerns about Chinese inflation after the People's Bank of
China said it will raise bank reserve requirements for the
second time in two weeks, along with still unresolved debt woes
in Europe, have pressured equities in recent weeks.
But a possible resolution to Ireland's banking and debt
crisis sparked a big equity rally on Thursday and lifted the
euro on Friday. A financial aid deal to help Ireland cope with
its battered banks will be unveiled next week, EU sources said.
[]
The euro <EUR=> was last up 0.1 percent at $1.3649,
recovering some from a slide to a seven-week low of $1.3446
earlier in the week.
The U.S. dollar index <.DXY> was up 0.1 percent at 78.625.
Oil prices eased toward $81 a barrel and copper fell,
reversing earlier gains, after China's move to raise banks'
required reserves fueled worries over its demand appetite.
"Commodities are seeing some increased pressure on China's
news, because any attempt to tighten their policy is going to
dampen their ability to grow," said Michael McGervey, president
of McGervey Wealth Management in North Canton, Ohio.
"Since China obviously uses a lot of resources, if their
growth is tempered it will have a negative impact on demand for
commodities and materials."
Crude oil futures <CLc1> fell 84 cents to $81.01, while the
S&P energy sector <.GSPE> lost 0.7 percent.
MSCI's all-country world stock index fell about 0.3
percent.
On Wall Street, the Dow Jones industrial average <> was
down 49.23 points, or 0.44 percent, at 11,132.00. The Standard
& Poor's 500 Index <.SPX> was down 5.94 points, or 0.50
percent, at 1,190.75. The Nasdaq Composite Index <> was
down 11.25 points, or 0.45 percent, at 2,503.15.
Under a financial aid deal, Ireland's government would
publish the details of a four-year fiscal plan to save 15
billion euros at roughly the same time.
"Even if the way to stability is not exactly clear, the
market seems to be getting more comfortable with the idea that
ultimately the situation will be stabilized one way or the
other," said Daniel Katzive, currency strategist at Credit
Suisse in New York.
Against the Japanese yen, the dollar <JPY=> was down 0.02
percent at 83.48.
German government bonds paused on Friday after selling off
heavily the previous day, while euro zone peripheral debt was
becalmed as investors waited to see if Ireland would seal a
deal to shore up its banking sector. []
Prices of shorter-term U.S. Treasuries came under pressure,
doing worse than long-dated maturities, ahead of big helping of
short- and medium-term supply before the U.S. Thanksgiving
holiday next week. []
Two-year notes <US2YT=RR> were down 1/32 in price to yield
2.89 percent.
Spot gold prices <XAU=> fell $6.35 to $1,347.10.
Asian stock markets were mixed, with MSCI's Asia ex-Japan
index <.MIAPJ0000PUS> down 0.1 percent and Japan's Nikkei
<> average up 0.1 percent.
(Reporting by Wanfeng Zhou and Ellen Freilich in New York;
Zaida Espana and Isabel Coles, Jan Harvey and Marie-Louise
Gumuchian in London and Blaise Robinson in Paris; Writing by
Herbert Lash; Editing by W Simon )
