* Investors trim growth outlook on Greek debt worry
* Chinese inflation, weak Japanese and US data also weigh
* Economists see global expansion on track - Reuters poll
* Gold, bonds attract safehaven flows; oil up on dollar
(Update market prices)
By Richard Leong
NEW YORK, April 14 (Reuters) - Stocks on major world
markets and the U.S. dollar fell on Thursday as Greece's debt
problem, Chinese inflation and disappointing U.S. jobs data
stoked worries over a global economic slowdown.
Bonds and gold rose as uneasy investors sought safehaven
from stocks and riskier investments.
"We do have to scale back growth expectations. The market
is more concerned about what growth will be like with rising
input costs," said Jerry Webman, senior investment officer and
chief economist at OppenheimerFunds in New York. "People are
looking at 'risk-off' trades."
U.S. oil prices climbed on the weaker dollar.
World stocks, as measured by the MSCI world index
<.MIWD00000PUS> shed 0.2 percent despite a burst of corporate
activity that would usually lift investors' spirits. On a
year-to-date basis, the index was still up 4.1 percent.
While investors fret over a global slowdown, economists in
the latest Reuters poll predicted world growth of 4.2 percent
this year and 4.3 percent in 2012, unchanged since the January
poll. See []
European stocks <> closed down 0.6 percent on the
day, while Wall Street stocks dipped 0.1 percent, though they
were off earlier lows.
Investors, despite their reservations about the global
economy, snapped up shares of Zipcar Inc. <ZIP.O> in its debut
on Nasdaq. Shares of the U.S. car-sharing company rose more 50
percent at $27.83. For more, see []
In Tokyo, the Nikkei <> closed up 0.1 percent after
Wednesday's late gains in the U.S.
Selling in European stocks emerged on a report that Chinese
inflation would re-accelerate after slowing recently. Hong
Kong's Phoenix TV, citing an unnamed source, said China's
annual rate of inflation in March was likely to be 5.3 percent
to 5.4 percent, a 32-month high and just above an estimate in a
Reuters poll. []
"In emerging markets especially China, they rely on high
levels of oil imports. They import a lot of oil products into
the manufacturing sector," said Chris Ferrarone, global equity
strategist with UBS in Stamford, Connecticut.
Investors are particularly concerned about Chinese
inflation in case the government attempts to restrain it by
raising interest rates, prompting a 'hard landing' for the
economy.
Stunningly huge figures on China's foreign exchange
reserves and money supply growth also fanned worries how
aggressively Beijing will confront inflation. For more, see
[]
PERIPHERAL WORRIES
Stock losses grew as Greek bond yields soared, with
short-dated paper coming under the most intense pressure, as
markets priced in a greater probability that Athens would be
forced to restructure its runaway debt.
Yields of other peripheral euro zone states also rose
sharply. []
A year ago, the deterioration of Europe's sovereign debt
problem held back the global recovery and forced the European
Central Bank to leave policy rates steady for longer.
Adding to jitters over the bailout cost in Europe was the
toll on Japan from last month's deadly quake and tsunamis.
The Reuters Tankan survey of 400 large firms found on
Thursday that power shortages caused by the crippled Fukushima
nuclear plant had hit nearly 60 percent of local companies,
disrupting production and supply chains. []
In the U.S., the surprise rise in jobless claims raised
doubts over the recovery in the labor market. []
Renewed anxiety over the U.S. economy hurt the dollar, as
traders bet the Federal Reserve will stick to an ultra-easy
policy even as other major central banks raise rates to curb
rising price pressures.
The ICE U.S. dollar index <.DXY> was down 0.4 percent and
touched a 16-month low. []
The weaker dollar supported oil value, despite worries over
less demand if the world economy slows.
U.S. oil prices <CLc1> jumped $1.27 above $108 a barrel.
But in London, Brent crude <LCOK1> was stuck in the red, down
48 cents at $122.40. For more, see []
Gold prices <XAU=> gained 1 percent on the day to $1,472.10
an ounce.
In bond trading, U.S. Treasury prices fell in a choppy
session, despite strong demand at $13 billion auction of
30-year bonds. The benchmark 10-year yield <US10YT=RR> last
traded at 3.48 percent after touching its lowest level in about
1-1/2 weeks earlier. For more, see []
German Bund futures <FGBLc1> were up 0.2 percent at 120.67,
the highest in more than a week. For more, see []
(Additional reporting by Ryan Vlastelica, Gertrude
Chavez-Dreyfuss, Gene Ramos, Robert Gibbons and Frank Tang;
Editing by Chizu Nomiyama)
