GLOBAL MARKETS-US stocks up on Fed talk, euro rises

                                
   * U.S. stocks open higher after Fed chairman comments
                                
 * Euro edges up on profit-taking after prior day weakness
                                
 * US bonds lower ahead of auction
                                
 * Gold touches record dollar high on risk aversion
 (Updates with U.S. markets, changes byline, dateline, previous
LONDON)
                                
 By Manuela Badawy
                                
 NEW YORK, June 8 (Reuters) - U.S. stocks opened higher on
Tuesday after Federal Reserve Chairman Ben Bernanke said the
U.S. economy appeared to have enough momentum to avoid a
double-dip recession, while the euro edged up on profit-taking
after the currency hit a four-year low against the dollar.
                                
 But stocks turned negative, led down by technology and
consumer discretionary shares and investor concern with
Europe's sovereign debt crisis.
                                
 U.S. Treasury bond prices were lower ahead of the first of
this week's $70 billion worth of bond auctions, but gold prices
hit a record dollar high as aversion to risk remains strong.
                                
 Bernanke, in comments at the Woodrow Wilson Center in
Washington, also said European leaders were committed to
ensuring the survival of the euro and had enough money to meet
obligations of heavily indebted member nations.[ID:nLDE65705B]
                                
 "Markets remain nervous. So far today, Mr. Bernanke's
comments have just sort of stopped us," said Frank Lesh, a
futures analyst and broker at FuturePath Trading LLC in
Chicago. "He stabilized the markets, if you will, for the time
being."
                                
 The Dow Jones industrial average <.DJI> was down 1.28
points, or 0.01 percent, at 9,815.21. The Standard & Poor's 500
Index  <.SPX> was down 0.54 points, or 0.05 percent, at
1,049.93. The Nasdaq Composite Index <.IXIC> was down 15.44
points, or 0.71 percent, at 2,158.46.
                                
 Europe's FTSEurofirst 300 <.FTEU3> was down 0.67 percent,
giving up an early rise. That pushed MSCI's all-country world
stock index <.MIWD00000PUS> to pare gains.
                                
 DEFICITS AND SOVEREIGN DEBT CONCERNS
                                
 In currency markets, the pound fell after a ratings agency
urged Britain to cut its deficit, making it the the latest
salvo in a series of concerns expressed by rating agencies
about the state of government finances in Europe, encompassing
Greece, Spain, Hungary, and Ireland.
                                
 Fitch said "the scale of the UK's fiscal challenge is
formidable and warrants a strong medium-term consolidation
strategy -- including a faster pace of deficit reduction than
set out in the April 2010 budget."
                                
 Solving the debt problem implies heavy budget cuts at a
time when many believe spending is needed to help keep economic
recovery on track.
                                
 The euro's gains were slight, though, and analysts said the
market remained anxious about debt levels in several euro zone
countries.
                                
 With Portugal, Italy and Spain set to sell new bonds this
week -- the first sale for Spain since its credit ratings
downgrade -- investors were still wary of overexposure to the
euro, keeping the currency capped below $1.20.
                                
 "The euro decline isn't over," said Marc Chandler, senior
strategist at Brown Brothers Harriman in New York. "There are
supply concerns this week, and what we're seeing now is a brief
respite. A rise above $1.20 would be a good chance to sell."
                                
 The euro <EUR=> was up 0.12 percent at $1.1928 from a
previous session close of $1.1914. Against the Japanese yen,
the dollar <JPY=> was up 0.02 percent at 91.34 from a previous
session close of 91.320.
                                
 U.S. Treasury debt prices were lower, with benchmark
10-year U.S. Treasury note <US10YT=RR> down 11/32, yielding at
3.18 percent. The 2-year U.S. Treasury note <US2YT=RR> was down
2/32, with the yield at 0.738 percent. The 30-year U.S.
Treasury bond <US30YT=RR> was down 25/32, with the yield at
4.13 percent.   
                                
 The U.S. government will auction $36 billion worth of
three-year notes at 1 p.m. (1700 GMT), followed by offerings of
10- and 30-year bonds later in the week.
                                
 Normally, bonds weaken ahead of auctions as dealers sell to
make room on balance sheets and generally push for a price
concession to make the new debt more attractive.
                                
 Spot gold prices <XAU=> rose above $1250 an ounce, a record
high, benefiting from fears the euro zone's sovereign debt
crisis may spread, weighing on global economic recovery.
                                
 "It is mainly the fear of another slide into recession
which is seeing demand for gold as a safe haven," said
Commerzbank analyst Daniel Briesemann.
 (Additional reporting by Chuck Mikolajczak, Burton Frierson
and Steven C. Johnson in New York and Jeremy Gaunt and Jan
Harvey in London)
 (Editing by Theodore d'Afflisio)