* European austerity, US jobs data weigh on global stocks
* Euro slips on fears austerity measures to crimp growth
* Bonds rise on lackluster U.S. jobs date, Europe concerns
* U.S crude hits 3-month low below $74; Brent dips to $80
(Adds close of European markets, changes byline)
By Herbert Lash
NEW YORK, May 13 (Reuters) - The euro slid to a one-week
low against the U.S. dollar and global stocks faltered on
Thursday over worries that growth in Europe will slow due to
belt-tightening and on anemic U.S. jobs data.
U.S. Treasuries rose as losses in the euro and a struggling
Wall Street enhanced the allure of safe-haven government debt.
For details see: []
An only slight decline in jobless benefits for U.S. workers
last week and an unexpected increase in those continuing to get
benefits underscored the difficulties still facing the American
labor market. A drop in crude oil prices helped push energy
shares lower. []
Portuguese leaders agreed to tough new austerity measures
on Thursday, including higher taxes and wage cuts for civil
servants. In Spain, unions threatened a general strike to
protest austerity measures there.
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"Europe basically looks like a zombie economy and on top of
it, you're seeing a massive retrenchment in government
spending," said Jessica Hoversen, fixed income and currency
analyst at MF Global in Chicago.
The euro <EUR=> was off 0.41 percent at $1.2569, after
earlier falling to a low of $1.2540.
MSCI's benchmark all-country world equity index
<.MIWD00000PUS> rose 0.22 percent.
On Wall Street, the Dow Jones industrial average <> was
down 21.99 points, or 0.20 percent, at 10,874.92. The Standard
& Poor's 500 Index <.SPX> was down 4.23 points, or 0.36
percent, at 1,167.44. The Nasdaq Composite Index <> was
down 13.10 points, or 0.54 percent, at 2,411.92.
Disappointment over the jobless data offset optimism from
an agreement by German software company SAP AP <SAPG.DE>to buy
smaller U.S. rival Sybase Inc <SY.N> for $5.8 billion.
European shares ended slightly higher, with strong earnings
from telcoms provider BT <BT.L> and grocer Sainsbury <SBRY.L>
offsetting rising concerns that fiscal tightening in Europe
could slow the region's growth. []
The FTSEurofirst 300 <> index of top European shares
closed 0.1 percent higher at 1,049.89 points after bobbing
higher and lower througout a volatile session.
Skepticism among some market participants that the European
rescue package will even work darkened worries over the hit a
recovering global economy will take from belt-tightening.
"People think that equities could blow any minute. Watch
the euro and if it doesn't hold $1.25, which has been huge
support, there is going to be chaos," said James Combias, head
of government bond trading at Mizuho Securities USA in New
York.
Portugual's measures announced on Thursday are the latest
in a coordinated push in the euro zone that has so far calmed
the worst fears of Greek-style debt contagion spreading in
Europe.
The euro zone's debt debacle has been a boon for safe-haven
bonds recently, with investor nerves still frayed despite a 750
billion euro ($950 billion) rescue plan agreed to over the
weekend and tough budget talk from Portugal and Spain.
[]
The 30-year U.S. long bond <US30YT=RR> rose 14/32 in price
to yield 4.45 percent, while the benchmark 10-year U.S.
Treasury note <US10YT=RR> was up 6/32 price to yield 3.55
percent.
The dollar was up against a basket of major currencies,
with the U.S. Dollar Index <.DXY> up 0.36 percent at 85.134.
Against the yen, the dollar <JPY=> was down 0.55 percent at
92.66.
U.S. crude oil prices pared losses after the benchmark U.S.
crude contract slid to a three-month low below $74 a barrel on
record stockpiles in the U.S. Midwest. []
Rising global energy demand and hopes Europe's debt crisis
can be tackled have seen Brent rise for three of the last four
days, but U.S. crude prices have been falling since Tuesday.
Crude stockpiles at Cushing, Oklahoma, the delivery hub for
the U.S. contract, have risen for eight weeks to a record 37
million barrels, pushing U.S. crude to its steepest discount to
Brent since the peak of the global economic crisis.
U.S. light sweet crude oil <CLc1> fell 23 cents to $75.42 a
barrel, while Brent in London fell 1.06 percent to $80.34.
Asian stocks hit highs for the week on hopes over the
austerity measures in Europe. Japan's Nikkei <> gained 2.2
percent to a one week-closing high, and the MSCI Asia ex-Japan
index <.MIAPJ0000PUS> was 1.8 percent higher.
(Reporting by Leah Schnurr, Wanfeng Zhou, Burton Frierson and
Herbert Lash in New York and David Sheppard in London; Writing
by Herbert Lash; Editing by Leslie Adler)
