Stocks, oil fall; euro gives back gains

NEW YORK: Stocks and oil dipped after disappointing US economic data, while the euro gave back earlier gains amid renewed euro-zone worries.

Comments from Eurogroup president Jean-Claude Juncker, raising doubts over an IMF disbursement of financial support to Greece in June, put markets on edge, with the Dow and S&P 500 stock indices briefly adding to losses and US bonds adding to gains after the news.

Gold prices also fell, led by a fall in euro-priced bullion.

Investor desire to own stocks, commodities, and other risky assets remains fragile as US economic growth shows signs of slowing further and European policy-makers deal with the persistent debt problems in Greece, Portugal and Ireland.

"Most people have been baking into their assumptions that this recovery won't be too robust," said Randy Bateman, chief investment officer of Huntington Asset Management in Columbus, Ohio, which oversees $14.5 billion.

The Standard & Poor's 500 index was down 0.2 percent while the FTSEurofirst 300 index was down 0.07 percent.

In its second estimate of first quarter US economic performance, the government did not upwardly revise its first-quarter growth of 1.8 percent as forecast by economists. Adding to the latest batch of disappointing US data was a surprise rise in weekly jobless claims.

Against the US dollar, the euro was last at $1.4094, up 0.1 percent, helped by a news report that suggests Asia is willing to help ease Europe's debt woes.

The Financial Times quoted the head of the European Financial Stability Facility (EFSF) as saying China and other Asian investors were expected to buy a "strong proportion" of Portuguese bailout bonds when the euro zone's rescue fund starts auctioning them next month.

The US dollar was down 0.2 percent against a basket of major currencies.

Ten-year Treasury notes were trading 16/32 higher in price to yield 3.077 percent.

In the oil market, US crude oil was down $1.10 at $100.22 while Brent crude was down 27 cents at $114.66.

Spot gold was down 0.4 percent at $1,517.84 an ounce, after hitting $1,532.00 on Wednesday, its strongest since May 4.

Tokyo's Nikkei closed 1.5 percent higher, following Tuesday's in US and European equities.

Copyright Reuters, 2011