* 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 dives 3 percent on worries about global demand
(Updates with close of U.S. markets)
By Herbert Lash
NEW YORK, Aug 12 (Reuters) - Global stocks slid and the
U.S. dollar strengthened on Thursday after weakness in the
American jobs market sapped the appetite for risk, driving gold
to its biggest one-day gain in more than two months.
First-time jobless benefits claims unexpectedly rose to
their highest in almost six months, fueling fresh concerns of a
faltering U.S. economic recovery. For details, see
[].
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. []
The dollar extended its previous day's strong gains on the
weak U.S. jobs data. Softer-than-expected euro zone data also
spurred safe-haven demand for the dollar, as worries about the
global economy prompted investors to dump risky assets.
Gold prices hit a four-week high despite the strong dollar
and two days of sharp equity market losses, which were sparked
by the Federal Reserve's downgrade of its economic outlook.
"With the weak job report and everything else we heard in
the past couple of days, you are finding a safe-haven bid in
gold," said Fred Schoenstein, a trader at Heraeus Precious
Metals Management in New York.
Gold for December delivery in New York <GCZ0> settled up
$17.50, or 1.5 percent, at $1,216.70 an ounce. It was the
biggest one-day percentage gain for the contract since June 7.
A bleak outlook from tech bellwether Cisco Systems Inc
<CSCO.O> highlighted worries about the economic growth and cut
10 percent from Cisco shares a day after Chief Executive John
Chambers warning of "unusual uncertainty" in the economy.
[]
The Dow Jones industrial average <> closed down 58.88
points, or 0.57 percent, at 10,319.95. The Standard & Poor's
500 Index <.SPX> slid 5.86 points, or 0.54 percent, at
1,083.61. The Nasdaq Composite Index <> fell 18.36 points,
or 0.83 percent, at 2,190.27
"Bears have the upper hand today because claims were so
much worse than expected," said Gary Flam, a portfolio manager
at Bel Air Investment Advisors in Los Angeles.
"It adds to their case that we're not getting any jobs
growth, which means people won't be able to spend and the
economy won't be able to recover," Flam said.
MSCI's all-country world index of equities <.MIWD00000PUS>
fell 0.6 percent, as did its emerging markets index <.MCIEF>.
Oil prices fell to a three-week low, extending losses for a
third consecutive day, on the jobs data. []
U.S. crude <CLc1> for September delivery settled down $2.28
at $75.74 a barrel, and later dropped to $75.52, the lowest for
front-month crude since July 19.
Brent crude <LCOc1> was down $2.29 at $75.35.
U.S. Treasuries prices eased in profit-taking from a recent
rally that propelled benchmark yields to 16-month lows,
although losses were limited as lower stocks maintained some of
bonds' safe-haven allure. []
The benchmark 10-year U.S. Treasury note <US10YT=RR> was
down 12/32 in price to yield 2.75 percent.
The dollar was up against a basket of major currencies,
with the U.S. Dollar Index <.DXY> up 0.41 percent at 82.625.
The euro <EUR=> was down 0.09 percent at $1.2821, and
against the Japanese yen, the dollar <JPY=> was up 0.82 percent
at 85.90.
In Asia, the MSCI index of Asia Pacific ex-Japan stocks
<.MIAPJ0000PUS> fell 1.2 percent. The Nikkei average <>
closed 0.9 percent down after sliding to a 13-month low earlier
in the session.
(Reporting by Ryan Vlastelica, Wanfeng Zhou, Chris Reese,
Frank Tank and Gene Ramos in New York; George Matlock and Brian
Gorman in London; Writing by Herbert Lash; Editing by Kenneth
Barry)
