* World stocks under pressure, markets off recent highs
* Euro falls against dollar on Greece, Fed rumor
* Dow industrials gain for 8th day; Boeing, tame CPI help
(Updates with closing U.S. market prices)
By Jennifer Ablan
NEW YORK, March 18 (Reuters) - World stocks dropped on
Thursday and the euro weakened against the U.S. dollar on
renewed worries about Greece, which said it may be unable to
solve its fiscal problems if borrowing costs stay high.
Adding to the moves in currencies, traders linked the
euro's selling to rumors the U.S. Federal Reserve would hike
the discount rate. Asked about the speculation, the Fed said
it does not comment on rumors. For details, see
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The euro <EUR=> fell to session lows against the U.S.
dollar of $1.3587 before recovering to $1.3607 at the close in
New York, according to Reuters data. The MSCI's all-country
world stock index <.MIWD00000PUS> slipped 0.48 percent while
its emerging market-only counterpart <.MSCIEF> fell 0.42
percent.
Greece raised the stakes in its quest for EU help to
tackle its debt crisis, saying it cannot achieve promised
deficit cuts if its borrowing costs remain so high and it may
have to call in the IMF. [].
"This just highlights the uncertainty surrounding the
Greece issue. There seems to be no consensus in the euro zone,
which is undermining confidence and that is what is weighing
on the euro today," said Antje Praefcke, currency strategist
at Commerzbank.
The pan-European FTSEurofirst 300 <> index of shares
dipped 0.11 percent to end at 1,069.69 points, while the
Nikkei 225 Index <> fell 0.95 percent to close at
10,744.03.
DOW IN 8-DAY WINNING STREAK
The Dow industrials rose for the eighth consecutive
session, buoyed by a 2.2 percent jump in Boeing Co <BA.N>
shares after encouraging comments from Bernstein Research
about its 787 jet program. Boeing ended at $70.87, its highest
close since late June 2008.
A tame reading on inflation and some strong earnings also
helped the stock market. The Consumer Price Index, an
inflation gauge, was unchanged in February. Both Nike Inc
<NKE.N> and GameStop <GME.N> rallied after reporting results.
"Earnings continue to be good, and along with a lack of
inflation pressure, there's nothing preventing the markets
from continuing on their uptrend," said Carl Birkelbach,
chairman of Birkelbach Investment Securities in Chicago.
The Dow Jones industrial average <> rose 45.50
points, or 0.42 percent, to end at a fresh 17-month closing
high of 10,779.17. In contrast, the Standard & Poor's 500
Index <.SPX> inched down 0.38 point, or 0.03 percent, to
finish at 1,165.83. But the Nasdaq Composite Index <>
edged up 2.19 points, or 0.09 percent, to close at 2,391.28.
BONDS SAG ON SUPPLY CONCERNS
U.S. Treasury debt prices fell on looming supply,
overshadowing the mild inflation data.
The benchmark 10-year U.S. Treasury note <US10YT=RR>
slipped 10/32 in price, while its yield rose to 3.68 percent.
The 2-year U.S. Treasury note <US2YT=RR> dipped 3/32, with the
yield at 0.9601 percent.
At the longer end of the Treasury curve, the 30-year U.S.
Treasury bond <US30YT=RR> fell 12/32, with the yield at 4.595
percent.
The dollar rose against a basket of major trading-partner
currencies, with the U.S. Dollar Index <.DXY> up 0.81 percent
at 80.285 from a previous session close of 79.638.
Overall, the euro was down 0.95 percent at $1.3607 from a
previous session close of $1.3737. Against the Japanese yen,
the dollar <JPY=> was up 0.09 percent at 90.35 from a previous
session close of 90.270.
U.S. light sweet crude oil <CLc1> fell 92 cents, or 1.11
percent, to $82.01 per barrel in after-hours trading, while
spot gold prices <XAU=> rose $1.45, or 0.13 percent, to
$1125.50.
Meanwhile, the Reuters/Jefferies CRB Index <.CRB> was down
0.62 point, or 0.22 percent, at 275.68.
(Additional reporting by Ellis Mnyandu in New York and Brian
Gorman and Jeremy Gaunt in London; Editing by Jan Paschal)
