* Ireland turns spotlight back onto euro zone debt
* Disappointing Cisco outlook weighs on Wall St
* Gold erases gains as dollar strengthens
By Walter Brandimarte
NEW YORK, Nov 11 (Reuters) - The euro fell on Thursday on
concerns about Ireland's ability to repay its debt while U.S.
stocks fell on doubts about corporate profits after a
technology bellwether gave a dismal earnings outlook.
Gold erased initial gains and fell as the dollar rose
against major currencies. Oil prices were little changed as
news of strong Chinese demand was offset by the rise of the
greenback.
Yields on 10-year Irish bonds rose to a record high over
comparable German debt as investors speculated Ireland will
soon need financial help to service its debt. For details, see
[].
Ireland's Finance Minister Brian Lenihan admitted the surge
in borrowing costs had become "very serious," but European
officials denied for a second day that Dublin was seeking
financial aid -- a pattern similar to one six months ago when
Greece needed an EU/IMF bailout.
"Europe never fully addressed these problems, and it's
clear solvency issues in Ireland have not been resolved," said
Marc Chandler, global head of currency strategy at Brown
Brothers Harriman, who sees the euro at $1.33 by the end of
2010.
The euro <EUR=> dropped 0.74 percent against the dollar to
$1.368.
"The euro can't sustain even modest upticks right now, and
a fall below $1.3650 could open up another two-cent decline,"
Harriman added.
The dollar strengthened against major currencies, with the
U.S. Dollar Index <.DXY> up 0.54 percent. Also supporting the
greenback was a U.S. think tank report saying the Federal
Reserve may scale back its latest plan to buy government
bonds.
Against the Japanese yen, the dollar <JPY=> was up 0.17
percent at 82.43.
TECH WEIGHS ON WALL ST
Technology shares led a slide on Wall Street after a
disappointing outlook from Cisco Systems Inc <CSCO.O>.
[]
The Dow Jones industrial average <> fell 105.24 points,
or 0.93 percent, to 11,251.80, while the Standard & Poor's 500
Index <.SPX> declined 11.02 points, or 0.9 percent, to
1,207.69. The Nasdaq Composite Index <> was down 37.55
points, or 1.46 percent, at 2,541.23.
Cisco's shares fell 15 percent after Chief Executive John
Chambers expressed caution about short-term challenges in
Europe and purchases by public-sector customers.
European stocks were little changed, with investors
cautious about the situation in Ireland. The FTSEurofirst 300
<> index of top European shares edged 0.2 percent lower
to 1,107.59 points after falling 0.7 percent on Wednesday. It
is up 71 percent since a record low in March 2009, but is up
just 6 percent in 2010.
Gold prices <XAU=> gave up early gains and dipped 96 cents
to $1,402.20 an ounce as the dollar rose. U.S. crude oil
<CLc1> was practically unchanged at $87.80 per barrel.
(Additional reporting by Edward Krudy and Steven C. Johnson;
Writing by Walter Brandimarte; Editing by Kenneth Barry)
