(Recasts; adds U.S. markets, byline; changes dateline,
previous LONDON)
By Herbert Lash
NEW YORK, April 3 (Reuters) - U.S. stocks were little
changed and Treasury debt prices mostly rose on Thursday after
a surprisingly big jump in weekly jobless claims raised fears
of a recession and the impact a credit crunch will have on
global growth.
European stocks fell as worries of further asset
write-downs weighed on the banking sector, while data showed a
slowdown in the euro zone economies.
The dollar gained against the euro as investors reassessed
expectations of deep U.S. interest rate cuts, and oil prices
rose slightly as crude markets weighed the likelihood the
Federal Reserve will cut rates further, which could boost oil
futures.
Stocks opened lower following U.S. data showing the number
of workers applying for unemployment benefits soared to the
highest level since September 2005, reinforcing fears that the
U.S. economy has stalled.
The report stirred concern that the Labor Department's
monthly employment report, due on Friday, may show further
deterioration in the U.S. job market.
"The trend is for rising unemployment. There's no doubt
about it," said Joe Saluzzi, co-manager of trading at Themis
Trading in Chatham, New Jersey. "I've been bearish for a long
time and I don't think we have found a bottom."
On Wall Street, stocks were near flat in early afternoon
trading. The Dow Jones industrial average <> edged down
7.16 points, or 0.06 percent, at 12,598.67. The Standard &
Poor's 500 Index <.SPX> was up 0.12 point, or 0.01 percent, at
1,367.65. The Nasdaq Composite Index <> was down 1.19
points, or 0.05 percent, at 2,360.21.
Technology stocks sagged after Cisco Systems Inc <CSCO.O>,
was downgraded by investment bank UBS on concerns about slowing
orders and navigational device maker Garmin <GRMN.O> gave
revenue forecasts at the low end of market expectations.
In Europe, the FTSEurofirst 300 <> index of top
European shares unofficially closed 0.5 percent lower at
1,310.84 points, after gaining more than 4 percent over the
past two sessions amid hopes that the worst of the bank
write-downs may be over.
The DJ Stoxx European banks index <.SX7P> fell 1.85 percent
as UBS <UBSN.VX> and Britain's Lloyds TSB <LLOY.L> each shed
4.7 percent.
In Asia, shares climbed strongly with investors focusing on
resource shares on a rally in gold and oil.
The MSCI's measure of Asian stocks outside Japan
<.MIAPJ0000PUS> rose 1.2 percent, hitting its highest level
since early March.
Japan's Nikkei average <>, which suffered heavily in
the first quarter, rose 1.5 percent earlier in the global
trading day.
In a volatile session, the dollar swing between gains and
losses as investors remained focused on the U.S. non-farm
payrolls report for March.
The dollar pared gains and dipped slightly against the
euro. Comments by Federal Reserve Chairman Ben Bernanke on
Wednesday were less pessimistic than anticipated, and investors
toned down expectations for aggressive monetary easing.
The euro <EUR=> was down 0.10 percent at $1.5671 from a
previous session close of $1.5687. Against the Japanese yen,
the dollar <JPY=> was up 0.12 percent at 102.36 from a previous
session close of 102.24.
Spot gold prices <XAU=> rose $2.60, or 0.29 percent, to
$906.10.
Price gains in the U.S. government debt market were
limited, however, by data showing the vast U.S. services
contracted less than expected in March.
The U.S. benchmark 10-year Treasury note <US10YT=RR> was up
8/32 to yield 3.5754 percent. The 2-year Treasury note
<US2YT=RR> was down 1/32 to yield 1.9108 percent. The 30-year
bond <US30YT=RR> was up 22/32, yielding 4.3672 percent.
U.S. light sweet crude oil <CLc1> rose 24 cents, or 0.23
percent, to $105.10 per barrel.
