* Global stocks up for 4th session but volatile
* Euro pulls back from near 2-month high vs dollar
* Gold jumps over 1 pct on economic woes, bargain buying
By Walter Brandimarte and Emelia Sithole-Matarise
NEW YORK/LONDON, July 9 (Reuters) - Global stocks rose on
Friday on speculation upcoming earnings will show strength, but
investors were still cautious, boosting the U.S. dollar and
sending gold prices up more than 1 percent.
Stocks advanced for a fourth consecutive session, putting
the S&P 500 on track for its best week in a year. Treasury
prices dipped before $69 billion worth of issuance next week.
Trading may be volatile as investors learn whether
expectations for strong results from U.S. corporations are
justified. Posting of quarterly results begins unofficially on
Monday when Alcoa Inc <AA.N> reports.
"We are all holding our breath for earnings season to
start," said Kim Caughey, senior equity research analyst at
Fort Pitt Capital Group in Pittsburgh. "Companies are very well
positioned because they're lightly staffed now and are very
productive."
The MSCI world equity index <.MIWD00000PUS> rose 0.5
percent, supported mainly by European shares, which benefited
from U.S. jobless claims and retailers on Thursday.
The FTSEurofirst 300 <> index of top European shares
was up 0.7 percent, after rising 5.1 percent in the past three
sessions.
Gains on Wall Street were more modest. The Dow Jones
industrial average <> rose 19.87 points, or 0.20 percent,
to 10,158.86, while the Standard & Poor's 500 Index <.SPX>
climbed 2.78 points, or 0.26 percent, to 1,073.03. The Nasdaq
Composite Index <> was up 6.20 points, or 0.29 percent, at
2,181.60.
Sentiment remained fragile as many investors worry the
global economy could slip back into recession. Even with the
gains of the last three days the S&P 500 is still down 12
percent since April. For an analysis on fears of a double dip,
see [].
Underscoring the rise of concerns about the global economy,
fund tracker EPFR reported on Thursday that equity funds
worldwide had outflows of more than $11 billion in the first
week of July. []
EURO RESUMES SLIDE
The euro fell against the dollar as investors pocketed part
of the rally that had taken the single currency to its highest
level in more than two months.
Traders said the euro was unable to remain above the key
resistance level of $1.27 due to lingering worries about the
euro-zone economy.
"Since the 1.1877 June low, the euro has rallied an
impressive 6.1 percent," said Camilla Sutton, a currency
strategist at Scotia Capital in Toronto. "However, near-term
risks continue to loom and we will see another bout of euro
weakness."
The single European currency <EUR=> was down 0.42 percent
at $1.264 from a previous session close of $1.2693.
The single currency got a lift on Thursday after
Jean-Claude Trichet, the European Central Bank president, said
the euro zone's economy performed much better in the second
quarter. However, he also said the region would grow "at a
moderate and still uneven pace in an environment of high
uncertainty."
The dollar was also up against a basket of major
currencies, with the U.S. Dollar Index <.DXY> up 0.09 percent.
Against the Japanese yen, the greenback <JPY=> was 0.1 percent
stronger at 88.46.
U.S. Treasury prices fell as higher global stocks reduced
the safe-haven allure of government bonds but also because
investors made room for $69 billion worth of coupon-bearing
supply next week.
The U.S. Treasury Department will sell $35 billion in
three-year debt on Monday, $21 billion in 10-year notes on
Tuesday and $13 billion in 30-year bonds on Wednesday.
The benchmark 10-year U.S. Treasury note <US10YT=RR> was
down 5/32 in price, with the yield at 3.0556 percent.
Gold prices rose back above $1,210 an ounce. Some investors
were cautious about the U.S. earnings season and others found
the metal attractively priced. Spot gold <XAU=> jumped 1.32
percent to $1,211.20 an ounce.
(Additional reporting by Jan Harvey in London and Edward
Krudy, Vivianne Rodrigues and Richard Leong in New York;
Editing by Kenneth Barry)
