* 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
(Updates with European markets close)
By Walter Brandimarte
NEW YORK, July 9 (Reuters) - Global stocks rose on Friday, on
track for their best week in nearly a year, on hopes that U.S.
companies will report strong earnings next week. But investors were
still cautious, buying the U.S. dollar and driving gold prices up
more than 1 percent.
Trading on Wall Street was also volatile after three consecutive
sessions of strong gains, with many investors going for cash due torecurring fears of a double-dip recession and the upcoming earnings
season, which officially opens on Monday when Alcoa <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 0.4 percent
during the session, boosting weekly gains to 4.8 percent -- which
could be the highest since the 6.6 percent gain recorded in the week
ending July 18, 2009.
The FTSEurofirst 300 <> index of top European shares ended
0.61 percent higher, also its biggest weekly rise since July 2009.
Shares of ,iners and metal producers led gains on hopes for strong
demand from China and positive quarterly results from U.S. aluminium
giant Alcoa.
Gains on Wall Street were more modest. The Dow Jones industrial
average <> added 4.54 points, or 0.04 percent, to 10,143.53,
while the Standard & Poor's 500 Index <.SPX> rose 1.72 points, or
0.16 percent, to 1,071.97. The Nasdaq Composite Index <> was up
6.51 points, or 0.30 percent, at 2,181.91.
Alcoa shares rose 0.8 percent to $10.81. Google Inc <GOOG.O>
added 1.6 percent to $464.00 after Beijing gave it the green light to
continue operating its China search page.
But 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 from its most
recent closing high in late 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 0.46 percent at
$1.2635 from a previous session close of $1.2693.
On Thursday, the single currency got a lift 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 0.14 percent.
Against the Japanese yen, the greenback <JPY=> was up 0.16
percent at 88.52.
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
6/32 in price, with the yield at 3.0574 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 1.07 percent, to
$1,209.20 an ounce.
U.S. crude oil prices <CLc1> rose 19 cents, or 0.25 percent, to
$75.63 per barrel.
(Additional reporting by Jan Harvey in London and Edward Krudy,
Vivianne Rodrigues and Richard Leong in New York; Editing by Jan
Paschal)
