* Global shares gyrate on Bernanke and Intel statements
* Bernanke voices concerns for economy, ready to act
* Intel warns on Q3 revenue, shortfall of $1 bln possible
* Euro rises but yen drops on intervention concerns
By Daniel Bases
NEW YORK, Aug 27 (Reuters) - Bargain hunters pulled global
stocks out of a tailspin on Friday after Federal Reserve
Chairman Ben Bernanke said the central bank was ready to
counter a softening recovery and Intel warned on its revenues.
Bernanke's comments at the Jackson Hole symposium of
central bankers and Intel's warning triggered a sharp sell-off
in global shares, and investors piled into the U.S. dollar for
safety, causing oil and gold prices to drop.
But those losses proved short-lived.
The accumulation of gloomy economic data and the market
losses for much of August proved too tempting for
short-covering and investors looking to pick up assets on the
cheap.
Even U.S. economic data showing a sharp downward revision
in second quarter gross domestic product was less gloomy than
economists expected and underpinned share prices in Europe as
well as on Wall Street. For details, see []
"(Bernanke) is not saying anything to change the big
picture, and the big picture here is of a continued drip of
grim economic tidings, and the takeaway here is that
unemployment is problem number one," said David Dietze, chief
investment strategist at Point View Financial Services in
Summit, New Jersey.
In mid-day trade, the Dow Jones industrial average <>
rose 105.65 points, or 1.06 percent, at 10,091.46. The Standard
& Poor's 500 Index <.SPX> gained 10.47 points, or 1.00 percent,
at 1,057.69. The Nasdaq Composite Index <> climbed 19.50
points, or 0.92 percent, at 2,138.19.
Bernanke said the Fed would consider further steps to spur
the stumbling economy by providing additional stimulus, even by
unconventional measures. []
Intel Corp <INTC.O>, a Dow component, said third-quarter
revenue would be below its previous outlook, perhaps by as much
as $1 billion due to weaker demand for personal computers. The
stock fell after the forecast, but later traded up 1.35 percent
at $18.42. []
Europe's top shares held gains into the close of trade, but
lost ground for a third straight week. The FTSEurofirst 300
index <> gained 0.6 percent on the day, but slipped 0.27
percent on the week.
The MSCI All-Country World equity index <.MIWD00000PUS>
rose 0.72 percent, off a seven-week low hit earlier this week.
The index is down 3.3 percent so far in August. The Thomson
Reuters global stock index <.TRXFLDGLPU> gained 0.77 percent.
Emerging stocks <.MSCIEF> climbed 1.46 percent.
CURRENCIES AND DEBT
The euro recovered against the U.S. dollar after Bernanke's
comments and Intel's report.
After slipping as low as $1.2676 <EUR=> according to
Reuters data in the initial reaction, the euro traded at
$1.2746, up 0.21 percent.
The dollar, however, remained up against the yen, gaining 1
percent at 84.29 <JPY=>.
Analysts said the dollar would remain supported against
other safe haven assets because Bernanke gave no firm
commitment the central bank would provide additional easing,
which could put downward pressure on interest rates.
The yen is under pressure as speculation persisted that
Tokyo might take steps to stem export-damaging strength in the
Japanese currency. The yen is hovering near a 15-year peak of
83.60 against the greenback on safe-haven trade that is choking
off its already slumbering economy.
Prime Minister Naoto Kan said he would take firm action on
currencies when needed and that he would meet Bank of Japan
Governor Masaaki Shirakawa when the central bank chief returns
from the Jackson Hole conference. []
"I don't think we'll see intervention around current levels
unless we get a disorderly move where dollar/yen falls sharply,
say by 3 yen, during one day," said Gavin Friend, currency
strategist at nabCapital.
U.S. Treasuries prices fell on profit-taking from recent
rallies after Bernanke's speech signaled no imminent bond
buying by the central bank.
The benchmark 10-year Treasury <US10YT=RR> fell 1-10/32
points in price, driving the yield up to 2.63 percent.
German Bund futures <FGBLc1> settled 28 ticks lower to
133.66, with traders saying the market was disappointed that
Bernanke didn't announce any new stimulus measures.
Crude oil <CLc1> rose 0.83 percent to $73.97 per barrel,
and spot gold prices <XAU=> gained $1.05 to $1,235.10.
(Additional reporting by Lucia Mutikani, Burton Frierson,
Vivianne Rodrigues, Ryan Vlastelica, Franklin Paul, Natsuko
Waki, Atul Prakash, Ian Chua; Editing by Andrew Hay)
