GLOBAL MARKETS-Ireland worries dent equities; euro off lows

                                
* Ireland worries dent shares, commodities
                                
 * But talk of rescue deal helps euro off 6-week low vs dlr
                                
 * Global stocks down 0.5 pct; emerging stocks down 1.4 pct
                                
 
                                
 By Jessica Mortimer
                                
 LONDON, Nov 12 (Reuters) - Concerns about severe fiscal
problems in Ireland that may eventually result in a Greek-style
bailout weighed down on shares and other riskier assets
including commodities on Friday.
                                
 The euro came off earlier six-week lows versus the dollar,
however, while spreads between German and euro zone peripheral
bond yields narrowed from elevated levels on market talk a
rescue package for Ireland was being agreed, although this was
denied by an Irish finance ministry spokesman. [ID:nWLA7895]
                                
 Market sentiment was also helped after EU leaders sought to
reassure bondholders they would not be forced to take a
writedown, although jitters about the severity of the situation
remained. [ID:nTOE6AB04P]
                                
 Global stocks fell, with the MSCI world equity index
<.MIWD00000PUS> down 0.5 percent. European shares <.FTEU3> were
down 0.7 percent, having earlier lost more than 1 percent, while
U.S. equity futures <SPc1><DJc1> indicated a lower open on Wall
Street.
                                
 Emerging stocks <.MSCIEF> came under particularly heavy
pressure, dropping by 1.4 percent.
                                
 "There are too many uncertainties on investors' minds about
euro peripheral debt and they are rushing to the door. These
sovereign debt problems are a trigger to book profits in
commodities and emerging markets assets," said Jane Foley,
senior currency strategist at Rabobank.
                                
 This followed sharp falls in Asian stocks, led by a 5.2
percent drop in the Shanghai composite index <.SSEC> -- the
biggest single-day decline since May -- on talk of more monetary
tightening and a scramble out of resource-related shares.
                                
 The euro was up 0.2 percent at $1.3686 against the dollar
<EUR=>, having earlier hit a six-week low of 1.3573 on EBS
trading platform.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 
For more on Ireland's debt woes, click [ID:nTOE6AB04P]  
For more on the G20's struggle for progress, see [ID:nN11196971]
For more about the selloff in China, click [ID:nTOE6AB04G] 
 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> 

                                
 PERIPHERAL SPREADS, COMMODITIES
                                
 The premium demanded to hold Irish 10-year bonds over German
bonds narrowed from record high levels.
                                
 But nervousness about Ireland and other troubles in
peripheral euro zone countries kept yield spreads elevated, with
the premium for holding Spanish and Italian over German bonds
rising to euro lifetime highs in early trade.
                                
 "I would suggest this is just a relief pause and it's just
going to fuel expectations that the Irish are eventually going
to have to go to the (European Financial Stability Fund)," said
James Knightley, an economist at ING.
                                
 German bund futures <FGBLc1> fell 46 ticks at 129.58.
                                
 The dollar <.DXY> was steady against a basket of major
currencies.
                                
 A broad retreat from riskier assets pushed oil prices <CLc1>
down nearly 2 percent to $86.07 per barrel, retreating from a
25-month high reached the previous session, while gold prices
<XAU=> fell 1.6 percent.
                                
 (Additional reporting by Anirban Nag and Kirsten Donovan)