GLOBAL MARKETS-Stocks slip, dollar gains on recovery worries

                                
   * Stocks slide on fresh signs of U.S. economic weakness
                                
 * Dollar gains on worse-than-expected U.S. jobless claims
                                
 * Most U.S. bonds slip on profit-taking before auction
                                
 * Oil falls to two-week low on Chinese, U.S. demand doubts
 (Updates with close of European markets)
                                
 By Herbert Lash
                                
 NEW YORK, Aug 12 (Reuters) - Global stocks eased and the
U.S. dollar strengthened on Thursday after weakness in the
American jobs market sapped the appetite for risk and sent
yields on safe-haven German Bunds to an all-time low.
                                
 The number of American workers filing new claims for
unemployment insurance unexpectedly rose to its highest level
in almost six months, fueling fresh concerns of a faltering
U.S. economic recovery. For details, see [ID:nN1274714].
                                
 The euro slid to a three-week low against the dollar at one
point after figures showed Greece's economy shrank more than
expected in the second quarter and euro zone industrial
production declined in June. [ID:nN12113257]
                                
 The euro later firmed a bit while the dollar extended the
previous day's strong gains on the weak U.S. jobs data and the
weaker-than-expected euro zone data spurred safe-haven demand
for the greenback.
                                
 U.S. government debt prices were mostly lower on
profit-taking. [ID:nN12108320].
                                
 "Right now, there is no short-term catalyst for economic
optimism," said Guy LeBas, chief fixed-income strategist with
Janney Montgomery Scott in Philadelphia.
                                
 Jessica Hoversen, a fixed-income and currency analyst at MF
Global in Chicago, said markets are re-pricing slower growth
outside the United States, spurring dollar appreciation.
                                
 "Investors were aware of a slowdown in the U.S. economic
recovery, but now there are concerns other economies won't be
able to decouple from slower growth here and in China,"
Hoversen said.
                                
 A spate of data this week from China showed signs of an
slowdown in its growth, helping pull down Asian stocks.
                                
 MSCI's all-country world index of equities <.MIWD00000PUS>
fell 0.6 percent, even as major European stocks <.FTEU3>
rebounded a bit from Wednesday's 2 percent decline.
                                
 European shares gained on brewer InBev's <ABI.BR>
forecast-beating profit and a drug approval at GlaxoSmithKline
<GSK.L> [ID:nLDE67B0XM].
                                
 The recovery "is not surprising given the sell-off
yesterday," said Colin McLean, managing director at fund
manager SVM in Edinburgh. "There's still some nervousness."
                                
 The FTSEurofirst 300 <.FTEU3> index of top European shares
rose 0.2 percent to close at 1,042.77 points.
                                
 A bleak outlook from tech bellwether Cisco Systems Inc
<CSCO.O> highlighted worries about U.S. economic growth.
Cisco's shares were off 10 percent a day after Chief Executive
John Chambers warning of "unusual uncertainty" in the economy
unnerved investors. [ID:nSGE67B0HR]
                                
 The Dow Jones industrial average <.DJI> was down 44.69
points, or 0.43 percent, at 10,334.14. The Standard & Poor's
500 Index <.SPX> was down 4.80 points, or 0.44 percent, at
1,084.67. The Nasdaq Composite Index <.IXIC> was down 15.50
points, or 0.70 percent, at 2,193.13.
                                
 Oil headed for a third straight session of losses as prices
fell more than 2 percent toward $76 a barrel on heightened
doubts about the outlook for fuel demand from the United States
and China. [ID:nSGE67B03J]
                                
 U.S. crude <CLc1> for September delivery extended losses
following the U.S. jobs report, and was $1.68 lower at $76.34 a
barrel by 1636 GMT following a 3 percent decline on Wednesday,
its biggest daily drop in six weeks.
                                
 Brent crude <LCOc1> was at $76.36 a barrel, down $1.28.
                                
 Spot gold extended gains after the U.S. weekly unemployment
data, prompting a fresh wave of safe-haven buying.
[ID:nLDE67B1D7]
                                
 Spot gold prices <XAU=> rose $16.40 to $1,212.10 an ounce
on the surge of interest in safe-haven assets.
                                
 Among U.S. Treasury debt prices, the benchmark 10-year U.S.
Treasury note <US10YT=RR> was down 9/32 in price to yield 2.74
percent, while the 30-year U.S. Treasury bond <US30YT=RR> was
off 8/32 in price to yield 3.93 percent.
                                
 The dollar was up against a basket of major currencies,
with the U.S. Dollar Index <.DXY> up 0.25 percent at 82.498.
                                
 The euro <EUR=> was up 0.16 percent at $1.2853, and against
the Japanese yen, the dollar <JPY=> was up 0.81 percent at
85.89.
                                
 In Asia, the MSCI index of Asia Pacific ex-Japan stocks
<.MIAPJ0000PUS> fell 1.2 percent. The Nikkei average <.N225>
closed 0.9 percent down after sliding to a 13-month low earlier
in the session.
 (Reporting by Angela Moon, Wanfeng Zhou and Richard Leong in
New York; George Matlock in London; Writing by Herbert Lash;
Editing by Kenneth Barry)