Reuters: US Dollar Report: GLOBAL MARKETS-Shares, euro slip on growth worries

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GLOBAL MARKETS-Shares, euro slip on growth worries Apr 30th 2012, 15:27 Mon Apr 30, 2012 11:27am EDT * World equity index on track for monthly loss of 1.5 pct * Spain joins list of euro zone nations in recession * Dollar rebounds from 2-month low, Treasuries advance By Wanfeng Zhou NEW YORK, April 30 (Reuters) - Global shares edged lower on M onday, heading for their first monthly loss this year as Spain sank into recession and the U.S. economy showed signs of slowing. Treasury prices rose, while the euro fell and the dollar slipped to a two-month low against the Japanese yen as anxiety over economies on both sides of the Atlantic led investors to favor lower-risk investments over stocks and other risky assets. Spain, the euro zone's fourth-largest economy, slipped into recession in the first quarter as domestic demand fell, joining Italy, Portugal, Ireland, Greece, Belgium and the Netherlands on the list of countries with shrinking economies. In the United States, consumers boosted spending only modestly last month and a gauge of Midwestern business activity fell sharply in April, suggesting the economy entered the second quarter with less steam. "Growth is beginning to fade around the world," said Justin Hoogendoorn, fixed income strategist at BMO Capital Markets in Chicago. The MSCI world equity index slipped 0.3 percent to 328.38. It was on track to post a monthly loss of 1.5 percent, though it was still up 10 percent so far this year. On Wall Street, the Dow Jones industrial average was down 32.13 points, or 0.24 percent, at 13,196.18. The Standard & Poor's 500 Index was down 6.74 points, or 0.48 percent, at 1,396.62. The Nasdaq Composite Index was down 18.41 points, or 0.60 percent, at 3,050.79. In the euro area, trading was light ahead of May Day holidays on Tuesday, elections in France and Greece on the weekend and a European Central Bank meeting on Thursday where policymakers will have to consider the region's worsening economic health. Weak growth data from Spain raised worries that governments in the euro zone could soften their approach to tackling budget deficits. Several countries in the region are under intense pressure to cut spending to help reduce their debt to sustainable levels. "There is clear risk aversion in the market," said Boris Schlossberg, director of FX research at GFT in New York. "In short the news from Europe continues to point to further structural stress in the system." The FTSEurofirst 300 index of top European shares fell 0.7 percent to 1044.58. Emerging market shares however, gained 0.4 percent. The euro fell 0.2 percent to $1.3230, off a near one-month high of $1.3270 hit on Friday. The dollar lost 0.4 percent to 79.90 yen after hitting a more than two-month low of 79.84 yen. The greenback briefly touched a two-month low against a basket of currencies at 78.638, its lowest since March 1, before recovering to 78.814, up 0.1 percent on the day. The benchmark 10-year U.S. Treasury note was up 5/32, the yield at 1.9172 percent. In commodity markets, gold prices steadied around $1,660 an ounce on speculation of a third round of liquidity stimulus from the Federal Reserve . Brent June crude futures were down 84 cents to $118.99 a barrel and on track to close lower for the second consecutive month. U.S. crude was down 69 cents at $104.24 a barrel. Link this Share this Digg this Email Reprints

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