* Sterling weakens on fiscal worries; euro pares losses
* Copper, crude boosted by strong Chinese trade data
* World stocks tick up, hover near 6-wk highs
By Dominic Lau
LONDON, March 10 (Reuters) - Weak data and concerns over
Britain's fiscal problems hit sterling on Wednesday, while world
stocks inched up to hover near their recent six-week highs and
commodities rose on the back of strong trade data from China.
Sterling <GBP=D4> lost 0.4 percent to trade below $1.50 at
$1.4933 after data showed an unexpected fall in British
manufacturing output in January.
The British currency was already under pressure on concerns
over its sovereign rating and political uncertainty. It has lost
7.5 percent versus the dollar this year on concerns Britain may
be stuck in political deadlock after an election expected in
May.
The euro <EUR=> ticked 0.1 percent higher against the U.S.
currency at $1.3608, after trading as low as $1.3542 earlier in
the day following ratings agency Fitch said on Tuesday it still
had a negative outlook on Portugal's credit rating.
"Fiscal concerns are resulting in extreme pessimism for both
currencies in the near term," said Lee Hardman, currency
economist at Bank of Tokyo-Mitsubishi UFJ.
World stocks measured in the MSCI All-Country World Index
<.MIWD00000PUS> inched up 0.1 percent to 300.72, hovering near a
six-week high of 301.61 reached on Monday, though they were
still up 66 percent from a low hit one year ago.
The pan-European FTSEurofirst 300 <> index was flat,
though Greece's share benchmark <> advanced 1.8 percent as
worries over the country's debt problems eased after Athens last
week announced more austerity measures and secured 5 billion
euros of debt funding from the market.
U.S. stock index futures <DJc1> <SPc1> <NDc1> gained 0.1 to
0.3 percent, indicating a higher start for Wall Street ahead of
wholesale inventories data for January.
"Equity markets have rebounded sharply since last year's
bear-market trough, with the S&P 500 <.SPX> rising almost 70
percent," Barclays Wealth said in a note. "We believe there is
more room for equity market gains, albeit probably at a slower
pace than registered in the past 12 months."
Asian shares outside of Japan <.MIAPJ0000PUS> put on 0.4
percent to hit a seven-week high as Chinese data showed exports
and imports in February were better than expected.
The news boosted copper prices <MCU3> and the Australian
dollar <AUD=D4>, which touched a seven-week high as China is the
biggest buyer of Australia's commodity exports.
Copper prices advanced 0.8 percent and gold <XAU=> was 0.6
percent higher. Oil prices <CLc1> advanced 0.5 percent to trade
below $82 a barrel.
DEBT ISSUANCE
Euro zone government bond prices drifted lower in what could
be the second-heaviest week of supply so far this year.
Germany sold 5 billion euros of two-year Schatz and 1
billion euros of an index-linked 10-year Bundei, while Portugal
placed 990 million euros of 2021 bond.
The June Bund future <FGBLc1> was down nine ticks at 122.74.
The two-year Schatz yield <EU2YT=RR> was 3 basis points higher
at 0.909 percent, while the 10-year Bund yield <EU10YT=RR> was
up 1 basis point at 3.146 percent.
Yields on benchmark 10-year U.S. Treasury <US10YT=RR> were
up 1.7 basis points at 3.7177 percent.
(Additional reporting by Umesh Desai in Hong Kong, and Tamawa
Desai, Atul Prakash and George Matlock in London; Editing by
Toby Chopra)
