* MSCI world equity index down 0.3 pct
* U.S. growth worries weigh on shares, U.S. dollar
* Dollar near 15-year low vs yen; more U.S. data awaited
By Jessica Mortimer
LONDON, Aug 4 (Reuters) - Global shares fell and the dollar
headed towards a 15-year low against the yen on Wednesday as
recent weak U.S. data sparked concerns about the U.S. economic
outlook and talk of more monetary easing by the Federal Reserve.
Data on Tuesday showed U.S. home purchase contracts tumbled
to a record low, while factory orders fell more steeply than
expected, implying an anaemic recovery. []
U.S equity futures <DJc1><SPc1> pointed to a lower open on
Wall Street ahead of U.S. ADP national employment data and the
Institute for Supply Management's July non-manufacturing index
later in the day. <ECON>
More weak numbers could spark jitters ahead of key U.S.
payrolls data on Friday, putting the dollar under more pressure.
"There's a fear of the future at the moment. People are
worrying about how bad things are going to get," said Mic Mills,
head of electronic trading at ETX Capital.
"Bond yields are at incredible levels, particularly when
10-year yields are being hit like this - that's saying there is
no growth coming through".
Concern about the U.S. economy and persistent Japanese
deflation, reinforced by a rising yen, sent 10-year Japanese
government bond yields <JP10YT=RR> to a seven-year low below 1.0
percent, while U.S. two-year yields <US2YT=RR> were near record
lows.
The MSCI world equity index <.MIWD00000PUS> fell 0.3
percent, while European shares lost ground, with the
FTSEurofirst 300 index <> down 0.5 percent.
DOLLAR FALLS VS YEN
The dollar fell to an eight-month low versus the Japanese
yen <JPY=> of 85.32 yen on Wednesday, opening up the path
towards 15-year lows below 84.82 yen.
Against a basket of major currencies <.DXY>, the dollar was
steady, staying close to a three-and-a-half-month low hit on
Tuesday.
"We see further dollar weakness ahead with the Fed making it
clear its priority is to support growth," said Ulrich
Leuchtmann, currency analyst at Commerzbank.
U.S. worries also encouraged stock market participants to
take profits. Earnings releases from Lloyds Banking Group
<LLOY.L> and Societe Generale <SOGN.PA> were strong, but these
were partly offset by downbeat results from Allied Irish Banks
<ALBK.I> and Standard Chartered <STAN.L>.
"Economic data in the U.S. has been pointing towards a
slowing economy and while earnings have been better than
expected, there are worries about the future. It is not the full
support the market needs," said Bernard McAlinden, investment
strategist at NCB Stockbrokers, in Dublin.
The drop in Japanese government bond yields and U.S. growth
worries pushed European bond prices higher, with September Bund
futures <FGBLc1> rising to their highest in more than two weeks,
helped by softer-than-expected UK services activity data.
The two-year U.S. Treasury note yield stayed near a record
low just above 0.52 percent set on Tuesday.
Softer appetite for assets such as stocks and hopes for a
rise in Asian demand helped gold prices <XAU=> rally to their
highest in more than a week, though a dearth of safe-haven
demand capped gains.
Oil fell for the first day in five as a rally that powered
prices to three-month highs near $83 on Tuesday lost steam. U.S.
crude oil <CLc1> fell 30 cents to $82.25.
(Additional reporting by Joanne Frearson and Neal Armstrong;
editing by Stephen Nisbet)
