* Wall Street slips amid recovery worries, earnings season
* Crude oil slides on persistent concerns about economy
* U.S. dollar gains vs euro on risk aversion
* U.S. bonds firm as stocks loss offsets supply concern
(Updates with U.S. markets activity, changes dateline;
previous LONDON)
By Herbert Lash
NEW YORK, July 7 (Reuters) - Global stocks slid anew on
Tuesday as an uptick in German manufacturing orders failed to
offset persistent concerns about economic prospects, worries
that pushed crude oil down prices to below $63 a barrel.
Caution was the order of the day, with the dollar rising
against the euro in a seesaw session in which risk tolerance
rose and then fell as investors weighed the outlook for growth
and corporate earnings. []
Data showed orders in Germany, Europe's largest economy,
rose at the strongest monthly pace in nearly two years in May.
But economists said the yearly comparison would remain weak for
some time. []
Euro zone government bond prices fell and the Bund future
retreated from seven-week peaks as heavy European supply of
almost 14 billion euro cut safety bids for bonds.
Another decline on Wall Street rekindled a safety bid for
U.S. government debt, offsetting worries about demand for this
week's sale of $73 billion in bonds. []
Tumbling energy shares dragged down European and U.S.
equity markets as oil fell more than 2 percent, pressured by
investors' caution over recovery and an expected increase in
gasoline stocks during the heart of the U.S. driving season.
[]
Exxon Mobil Corp <XOM.N> fell 1.7 percent and Chevron Corp
<CVX.N> dropped 1.3 percent in U.S. trading, while Royal Dutch
Shell <RDSb.L> shed 0.75 percent and Total <TOTF.PA> lost 1.2
percent in Europe.
"The markets are in a consolidation mode," said Andrew
Bell, head of research at Rensburg Sheppards. "To propel the
markets higher, we have got to see evidence of the turning
point in earnings and of the recovery and economic growth
moving from less bad to a little bit better."
At 1:30 p.m. EDT (1730 GMT), the Dow Jones industrial
average <> was down 67.41 points, or 0.81 percent, at
8,257.46. The Standard & Poor's 500 Index <.SPX> was off 6.44
points, or 0.72 percent, at 892.28. The Nasdaq Composite Index
<> lost 18.77 points, or 1.05 percent, at 1,768.63.
Disappointing UK industrial output data pulled shares lower
in London, with utilities among top European decliners.
The FTSEurofirst 300 <> index of top European shares
closed 0.8 percent lower at 826.36 points. The FTSE 100 <>
closed down 7.91 points at 4,817, a fresh two-month low.
British manufacturing output unexpectedly fell 0.5 percent
in May, official data showed, making it less likely the economy
returned to growth in the second quarter. []
Copper prices turned negative as concerns over demand and
world growth persisted. [] Copper for three-months
delivery <MCU3> in London traded at $4,930 a tonne.
Gold erased earlier gains to trade near break-even as the
dollar recovered lost ground against a basket of currencies,
reducing the precious metal's appeal as an alternative asset.
Spot gold prices <XAU=> rose 20 cents to $924.20 an ounce
and the U.S. Dollar Index <.DXY> was up 0.25 percent at
80.584.
The euro <EUR=> was down 0.23 percent at $1.3942, while
against the yen, the dollar <JPY=> fell 0.56 percent to 94.83.
An expected increase in U.S. gasoline stocks for the week
ended July 3, ahead of the long U.S. Independence Day holiday
weekend, pressured oil.
"Consumer confidence is weighed down by higher retail
prices and rising unemployment and so the number of Americans
taking to the road over the holiday weekend was probably lower
than last year," said Harry Tchilinguirian, senior oil analyst
with BNP Paribas.
The benchmark interbank cost of borrowing euros fell to a
new low on Tuesday as a banking system flush with funds
remained reluctant to lend money into the real economy.
[]
The benchmark 10-year U.S. Treasury note <US10YT=RR> was up
11/32 in price to yield 3.47 percent. The 2-year U.S. Treasury
note <US2YT=RR> was little changed, yielding 0.94 percent.
Asian stocks edged up slightly but struggled, with the MSCI
index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS>
rising 0.4 percent. Japan's Nikkei share average <> dipped
0.3 percent as a stronger yen hit exporter shares.
(Reporting by Rodrigo Campos, Nick Olivari, Richard Leong,
Ellen Freilich in New York; Atul Prakash, Joe Brock, Ikuko Kao,
Rebekah Curtis and Michael Taylor in London; writing by Herbert
Lash; Editing by Dan Grebler)
