* MSCI world equity index down 0.9 percent
* Sterling hits 1-yr low vs dollar before rebounding
* Government bonds firmer; oil down $10 over past week
By Natsuko Waki
LONDON, May 7 (Reuters) - World stocks held near a
three-month low while U.S. stock futures pointed to a firmer
Wall Street open on Friday a day after a mounting fears of a
euro zone debt crisis sparked a global rout in risk assets.
Sterling, which is also sensitive to risk aversion, bounced
off an earlier one-year low against the dollar after comments
from Liberal Democrat leader Nick Clegg lessened the risk of a
political stalemate and ratings agencies said Britain's AAA
status was not under threat from the election.
U.S. stocks fell as much as 9 percent in the last two hours
of trading on Thursday before recovering much of the loss and
the Dow suffered its biggest ever intraday point drop as a
suspected trading glitch and euro debt fears threw markets into
disarray.
Concerns Greece's debt woes would spread into other parts of
Europe are fanning risk aversion, with a lack of new anti-crisis
measures from the European Central Bank on Thursday triggering a
new wave of flight to safety. World stocks have erased all of
this year's gains to stand down 4 percent on the year.
"It is clear that the euro zone is in a very difficult
situation and there is no quick fix," said Tammo Greetfeld,
equity strategist at UniCredit.
"It looks like foreign investors, particularly U.S.
investors, yesterday for the first time significantly
acknowledged that there are some risks emanating from the euro
zone that could be severe."
The MSCI world equity index <.MIWD00000PUS> fell 0.8
percent, having hit its lowest level since February. The index
is on track to post its biggest weekly loss since November 2008.
U.S. non-farm payroll data is due at 1230 GMT.
The FTSEurofirst 300 index <> fell 1.5 percent, also
hitting levels not seen since early February. U.S. stock futures
rose nearly 1 percent <SPc1>.
Fund tracker EPFR Global said Europe equity funds saw more
than $2 billion in net outflows in the week to May 5, the most
in a year.
Emerging stocks <.MSCIEF> fell 1.8 percent.
The pound fell as low as $1.4478 <GBP=>, its weakest since
late April 2009, as vote tallies so far showed the opposition
Conservatives were on course to become the largest party in
parliament but lacked a clear majority. []
However, Clegg said he believed the larger opposition
Conservative party should try to form the next government. His
comments eased worries that a stalemate could derail any quick
plans to tackle the British public deficit and could prompt
credit agencies to downgrade Britain from its AAA status.
Ratings agency Moody's said the eletion outcome was no
direct threat to the triple-A status and Standard & Poor's said
its views on UK rating was unchanged.
U.S. crude oil <CLc1> was up 1 percent to $77.90. It briefly
fell below $77 a barrel, losing $10 in the past week as concerns
grew the growing debt crisis would hit global economic growth.
Bund futures <FGBLc1> slipped while Japanese government
futures hit a 2-month high of 140.10 <2JGBv1>.
EURO WOES
The euro bounced off the previous day's 14-month lows of
$1.2510 <EUR=>. It also rose nearly 3 percent on the day at
118.15 yen <EURJPY=> after shedding 5 percent to its lowest
level since December 2001 in the previous day.
Greece took a step closer to receiving rescue funds after
its parliament approved a 30 billion euro austerity bill late on
Thursday and the French Senate approved France's contribution to
the European Union aid package. [] [].
"It's very difficult to see how markets can draw a line
under Greece, and they will keep coming back to the issue of
Greek solvency," said Adam Cole, global head of FX strategy at
RBC Capital Markets.
The dollar <.DXY> fell 0.5 percent against a basket of major
currencies.
