* Global stocks slide as data shows recovery yet at hand
* Dollar bounces off 2009 low after Asian comments
* Bonds rise after mixed data with safe-haven support
* Oil falls more than 3 pct on rising crude inventories
(Adds close of U.S. markets)
By Herbert Lash
NEW YORK, June 3 (Reuters) - Weak U.S. economic data and an
unexpected rise in crude oil inventories on Wednesday dashed
hopes that the economy had truly turned the corner, knocking
down equities, oil and commodities prices while lifting the
U.S. dollar.
The news rekindled demand for the dollar as a safe haven
and prompted profit-taking in other currencies.
The Australian dollar fell more than 3 percent and the New
Zealand dollar slid more than 4 percent as investors took
flight from higher-yielding, commodity-linked currencies.
The Reuters-Jefferies CRB index <.CRB>, a global
commodities benchmark, fell 2.8 percent as the dollar snapped
back from a year low versus the euro that was set earlier in
the day.
Gold futures posted their biggest one-day percentage drop
in almost two months, ending about 2 percent lower, as the
dollar rally and tumbling oil triggered heavy profit taking.
Data showing the vast U.S. service sector contracted for an
eighth straight month in May and a report showing employers
axed 532,000 private-sector jobs last month soured investors.
In another report, total U.S. fuel demand over the four
weeks ending May 29 fell by 7.7 percent against year-ago
levels, the U.S. Energy Information Administration said.
The news signaled a prolonged recovery that would delay the
pick-up in business and consumer spending that is needed to
restore corporate earnings.
"The data just reminds people that the economy is still
losing jobs and economic growth is slow," said Giri Cherukuri,
head trader at OakBrook Investments LLC, which oversees $1.3
billion in Lisle, Illinois.
U.S. stocks snapped a four-day winning streak, led lower by
sliding oil and energy-related shares. DuPont Co <DD.N> fell
3.9 percent, Chevron Corp <CVX.N> slid 1.6 percent and Exxon
Mobil Corp <XOM.N> fell 1.2 percent.
The Dow Jones industrial average <> closed down 65.63
points, or 0.75 percent, at 8,675.24. The Standard & Poor's 500
Index <.SPX> fell 12.98 points, or 1.37 percent, at 931.76. The
Nasdaq Composite Index <> slid 10.88 points, or 0.59
percent, at 1,825.92.
U.S. crude <CLc1> traded down $2.43 to settle at $66.12 a
barrel, after falling as low as $64.95 in the session. London
Brent crude <LCOc1> fell $2.29 to $65.88 a barrel.
U.S. crude inventories jumped 2.9 million barrels last week
as imports rose, the EIA data showed, compared to a forecast by
analysts of a draw. []
"The crude build and the dollar's rise are the major
factors in today's drop in crude oil futures," said Andy Lebow,
broker of MF Global in New York. "Prices rallied recently based
on hopes of improving oil demand, but the latest data doesn't
support that line of thinking."
Copper fell as weaker-than-expected U.S. data signaled
economic conditions remained tough.
"There's a general feeling that the market has got ahead of
itself," said Alex Heath, head of base metals trading at RBC
Capital Markets.
The dollar rose against a basket of major currencies, with
the U.S. Dollar Index <.DXY> up 1.19 percent at 79.417.
The euro <EUR=> fell 1.01 percent at $1.4158, while against
the yen, the dollar <JPY=> rose 0.30 percent at 95.94.
The U.S. August futures contract for gold <GCQ9> settled
down $18.80 at $965.60 an ounce.
The benchmark 10-year U.S. Treasury note <US10YT=RR> was up
17/32 in price to yield 3.55 percent. The 2-year U.S. Treasury
note <US2YT=RR> rose 2/32 in price to yield 0.92 percent.
European also stocks fell, led by banking, energy and
mining shares, as the disappointing U.S. data raised doubts
about a reconvey in corporate earnings.
The pan-European FTSEurofirst 300 index <> closed
down 2.0 percent at 868.10 points.
Asian shares overnight rose to fresh eight-month highs as
U.S. home sales data from Tuesday added to optimism that the
global economy is through the worst.
Japan's benchmark Nikkei stock average <> rose 0.4
percent, while the MSCI index of Asian shares excluding Japan
<.MIAPJ0000PUS> rose 0.5 percent after touching a new
eight-month peak.
(Reporting by Ellis Mnyandu, Matthew Robinson, Gertrude
Chavez-Dreyfuss, Chris Reese and Frank Tang in New York, Chris
Baldwin in London and Peter Starck in Frankfurt; writing by
Herbert Lash; Editing by Leslie Adler)
