* 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, pares some losses
(Adds close of U.S. markets)
By Herbert Lash
NEW YORK, May 13 (Reuters) - The euro slid to a one-week
low against the U.S. dollar and global stocks fell on Thursday
over worries that belt-tightening in Europe will slow growth
and on concerns the U.S. jobs outlook was still weak.
U.S. stocks traded most of the session around break-even,
but fell steeply in late trade to end down more than 1
percent.
A warning from the chief executive of Cisco Systems Inc
<CSCO.O>, the network equipment maker, about the impact of the
weak U.S. jobs market on the economy underscored a bearish
mood. Cisco's stock fell 4.5 percent, making it the
third-biggest drag on the Dow Industrials. []
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: [] The euro hit a record low
against the Swiss franc of 1.3997 <EURCHF=EBS>.
Investors' aversion to risk increased after U.S. data
showed only a slight decline in jobless benefits for American
workers last week and an unexpected rise in those continuing to
get benefits .
News from Europe painted a tough picture for future growth.
Portuguese leaders agreed to tough new austerity measures,
including higher taxes and wage cuts for civil servants while
in Spain, unions threatened a general strike to protest
austerity measures there. [][]
"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 0.74 percent at $1.2527, the day's
low, in late trading after equity markets closed.
MSCI's benchmark all-country world equity index
<.MIWD00000PUS> fell 0.5 percent.
On Wall Street, the Dow Jones industrial average <>
closed down 113.96 points, or 1.05 percent, at 10,782.95. The
Standard & Poor's 500 Index <.SPX> shed 14.23 points, or 1.21
percent, at 1,157.44. The Nasdaq Composite Index <> fell
30.66 points, or 1.26 percent, at 2,394.36.
Skepticism among some market participants about whether the
European rescue package will even work darkened worries over
the potential hit a recovering global economy will take from
the belt-tightening in Europe.
"That there's still this looming problem in Europe that's
going to take time is the negative," said Marc Pado, U.S.
market strategist at Cantor Fitzgerald & Co. in San Francisco.
"The question is how big of a negative is that really going to
be."
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 23/32 in price
to yield 4.44 percent, while the benchmark 10-year U.S.
Treasury note <US10YT=RR> was up 9/32 price to yield 3.54
percent.
The dollar was up against a basket of major currencies,
with the U.S. Dollar Index <.DXY> up 0.64 percent at 85.374.
Against the yen, the dollar <JPY=> was down 0.49 percent at
92.71.
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. []
Crude oil fell for the third straight session, dragged down
by the economic concerns and rising U.S. inventories.
[]
Front-month U.S. crude <CLc1> for June delivery settled
down $1.25 to $74.40 a barrel, having earlier slid to $73.62,
the lowest since Feb. 12. U.S. crude prices have fallen in
seven of the last eight sessions.
London Brent <LCOc1> fell $1.09 to settle at $80.11 a
barrel,
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.
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)
