GLOBAL MARKETS-Oil, stocks plunge on global growth worries

* US new jobless claims unexpectedly jump to 8-mth high

* Oil plunges nearly 6 pct on data; stocks fall

* Treasuries, yen rise as investors seek safe-havens

(Updates with European markets close)

By Walter Brandimarte

NEW YORK, May 5 (Reuters) - Commodities plunged for a
fourth day on Thursday, dragging down stocks and fueling demand
for safe-haven assets, after new data cast more doubts on the
strength of the global economic recovery.

U.S. crude oil prices plunged nearly 6 percent and a
benchmark index of world stocks lost around 0.7 percent as
reports showed weekly U.S. jobless claims jumped to an
eight-month high after the country's productivity growth slowed
in the first quarter.

European stocks closed down, also pressured by data showing
German industrial orders declined unexpectedly in March. The
fall was cushioned, however, by bets the European Central Bank
will refrain from raising interest rates in June.

For details on the economic reports, see [ID:USJOB=ECI] and
[ID:nLDE74414K].

U.S. stock indexes opened more than 0.5 percent lower, but
the Nasdaq later pared losses. Some economists said seasonal
factors related to the Easter holiday may have distorted the
jobless claims data.

"I think we're in a situation where the markets and the Fed
have been too optimistic," said Bob Andres, chief investment
strategist with Merion Wealth Partners in Berwyn,
Pennsylvania.

"I don't think we're going to fall off a cliff but the road
to real recovery and full unemployment is going to take a long
time, and people ought to get back into that mode."
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Graphics:

Commodities down, not out? r.reuters.com/zyf49r

U.S. jobless claims: r.reuters.com/zyd49r
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The Dow Jones industrial average .DJI fell 97.48 points,
or 0.77 percent, to 12,626.10, while the Standard & Poor's 500
Index .SPX lost 8.39 points, or 0.62 percent, to 1,338.93.
The Nasdaq Composite Index .IXIC was down 2.88 points, or
0.10 percent, at 2,825.35.

In Europe, the FTSEurofirst 300 .FTEU3 closed 0.36
percent lower after falling 1.4 percent on Wednesday.

The MSCI All-Country World index .MIWD00000PUS fell 0.7
percent while the MSCI stock index for emerging markets
.MSCIEF was 0.8 percent lower.

Before this week's decline, world stocks had risen more
than 8.0 percent this year on investor confidence in strong
corporate earnings and robust growth in emerging markets.

Among the safe-havens benefited by Thursday's data, 10-year
U.S. Treasury notes US10YT=RR jumped 13/32 in price, while
its yield fell to 3.174 percent. The Japanese yen JPY= gained
around 0.7 percent against the U.S. dollar, at 79.95.

The euro EUR= fell against the U.S. dollar after European
Central Bank President Jean-Claude Trichet, speaking at a
monthly news conference, was less hawkish than some had
expected on future rate hikes.

The euro was down 1.52 percent against the greenback, at
$1.4595, after Trichet mentioned upside risks on prices but did
not use the phrase "strong vigilance," which traders said
suggests the ECB won't hike rates again in June.

COMMODITIES SUFFER

Commodities extended their sell-off into a fourth
consecutive day as investors worried about faltering economic
growth in major economies and excessive monetary tightening in
China, the world's top consumer of raw materials.

U.S. crude oil prices CLc1 fell 5.7 percent to $102.99 a
barrel, while Brent crude LCOc1 lost 5.7 percent to $114.24 a
barrel. The decline is the biggest weekly fall for Brent and
U.S. crude since the week ended July 4, 2010.

The Reuters-Jefferies CRB index .CRB, a global benchmark
for commodities prices, dropped 3.6 percent on Thursday. It has
lost about 6 percent so far this week.

Silver XAG= was set for its deepest weekly decline since
the late 1980s after the CME Group, in a move to curb
speculation, raised margin requirements for the 5,000-ounce
COMEX silver futures contract <0#SI:>.

At just below $38 an ounce, silver has fallen around 20
percent so far this week, with investors taking profits from a
recent rally that took it to a 31-year high just shy of $50 an
ounce.

"I think what's happening is risk aversion across all the
asset classes. Everyone thought the U.S. was on a growth
trajectory, but now some talk out of the U.S. is showing pretty
mediocre growth," said Patrick Armstrong of Armstrong
Investment Managers in London.

"We have not been adding any commodity exposure in the
dips, but we're still positive on commodities. U.S. dollar
depreciation in future will provide a positive tail wind," he
added.
(Additional reporting by Steven C. Johnson and Angela Moon in
New York, Barbara Lewis in London; Editing by Dan Grebler and
Andrew Hay)