* U.S. jobs data and Hungary debt worries pressure markets
* World stocks down 0.9 percent
* Euro at 4-year low vs dollar, below $1.20
(Updates with U.S. markets, changes byline, dateline, previous
LONDON)
By Manuela Badawy
NEW YORK, June 7 (Reuters) - World stocks fell on Monday as
weak U.S. jobs data and debt worries centred around eastern
Europe triggered fears about the global economic recovery,
which also pushed the euro to hit multi-year lows.
Safe-haven investments such as gold and U.S. Treasury
securities gained ground amid concerns about European sovereign
debt.
Data on Friday showing the U.S. economy generated fewer
jobs than expected in May and comments from Hungarian officials
suggesting the country could face a Greek-style debt crisis had
triggered flight to safety. []
Government officials, however, on Monday stressed the
country was not in the same situation as Greece and would meet
budget deficit targets set in an IMF and EU aid deal.
German industrial orders jumped far more than expected in
April, adding to signs Europe's largest economy was on the path
to durable growth. [] But this data did little to
raise hopes of a healthy recovery in the world economy.
MSCI's all-country world stock index <.MIWD00000PUS> was
down 0.9 percent, off its lows, and its emerging market
counterpart <.MSCIEF> was off 2.2 percent.
"The jobs data may have changed market sentiment a bit
because the numbers for this important indicator showed what
people have been suspecting for a while, that the U.S. economic
recovery may be slowing a little," said Hiroaki Osakabe, fund
manager at Chibagin Asset Management in Japan.
"Then you have this combined with signs that the euro zone
debt problems may be very deep-rooted. Both of these put
together are sparking selling."
Though Wall Street initially opened higher, stocks sagged
shortly afterward as appetite for risky assets remained hurt by
recent volatility and worries over Europe's fiscal crisis.
The Dow Jones industrial average <> was up 4.24 points,
or 0.04 percent, at 9,936.21. The Standard & Poor's 500 Index
<.SPX> gained 0.47 points, or 0.04 percent, to 1,065.35. The
Nasdaq Composite Index <> gained 1.17 points, or 0.05
percent, to 2,220.34.
Investors sold off shares Friday and continued into Monday
after monthly U.S. jobs data disappointed, adding fewer jobs
than expected of which a large portion were temporary hirings
for the U.S. Census.
In the currency market, European corporate demand helped
lift the euro after it touched $1.1876 <EUR=EBS>, its weakest
level since March 2006. But it remained below $1.20, a level
pierced Friday after Hungary's warning about its deficit
reminded investors of the severe debt problems plaguing some
European countries.[]
"After Hungary's warning and weaker-than-expected U.S. jobs
data on Friday, selling got a bit overdone," said Amelia
Bourdeau, senior strategist at UBS in Stamford, Connecticut.
Hungary itself is of minimal importance on the global
level, but there are concerns about exposure among leading
banks if Hungary defaults or if the fall in the forint fuels a
rise in loan delinquency among Hungarians who have borrowed
heavily in euros and Swiss francs.
It also comes hard on the heels of worries about defaults
in Greece and other southern euro zone members.
The pan-European FTSEurofirst 300 <> was flat while
Japan's Nikkei <> closed down 3.84 percent.
U.S. Treasuries rose as fresh weakness in stocks enhanced
the allure of safe-haven government bonds.
The benchmark 10-year U.S. Treasury note <US10YT=RR> was up
1/32, with the yield at 3.20 percent. The 2-year U.S. Treasury
note <US2YT=RR> flat with the yield at 0.743 percent. The
30-year U.S. Treasury bond <US30YT=RR> was up 3/32, with the
yield at 4.128 percent.
(Additional reporting by Steven C. Johnson in New York and
Jeremy Gaunt in London, Editing by Chizu Nomiyama)
