GLOBAL MARKETS-Stocks, euro, oil fall on slower Chinese growth

Fri Apr 13, 2012 10:27am EDT

* Risky assets slump after Chinese GDP data disappoint
    * Rising Spanish bond yields add to risk aversion
    * U.S., German government debt fetches safehaven bids


    By Richard Leong	
    NEW YORK, April 13 (Reuters) - World stock and oil prices
fell on Friday after China's first-quarter economic growth fell
short of expectations, clouding the outlook for the world's
second largest economy, while the euro succumbed to jitters over
Spain's rising debt costs.	
    Reduced optimism about global growth spurred investors to
shift cash into safe-haven U.S. and German government debt ahead
of the weekend.	
    Gold prices fell, paring their biggest one-week rise since
late February.	
    On Thursday, stock markets had risen on speculation that
Chinese gross domestic product data on Friday would come in
stronger than expected.	
    "The Chinese GDP number was weaker than expected and
everyone had used it as an excuse to rally yesterday," said
Peter Boockvar, equity strategist at Miller Tabak & Co in New
York. 	
    The Chinese government said its country's annual growth rate
decelerated to 8.1 percent in the first quarter, the slowest
pace in three years and below the 8.3 percent consensus forecast
of economists polled by Reuters. 	
    In Europe, Spain's government bond yields rose and the cost
of insuring its debt hit an all-time high as its banks borrowed
a record amount from the European Central Bank, underscoring
fears about the finances of the euro zone's fourth biggest
economy. Spain tests market appetite for its debt next week.
 	
    The yield on 10-year Spanish sovereign debt rose
nearly 0.10 percentage point to 5.90 percent, flirting with a
4-1/2-month high. 	
    In the equity market, the MSCI world stock index
 was down 0.4 percent due to drags from weaker
Wall Street and European shares.	
    Shortly after the market opened, the Dow Jones industrial
average was down 38.45 points, or 0.30 percent, at
12,948.13. The Standard & Poor's 500 Index was down 4.15
points, or 0.30 percent, at 1,383.42. The Nasdaq Composite Index
 was down 11.82 points, or 0.39 percent, at 3,043.73.	
    Bank stocks are seen under pressure after shares of 
JPMorgan and Wells Fargo fell in pre-market
trading despite these banks beating quarterly earnings
expectations. The Select Sector Financial SPDR ETF was
down 1 percent. 	
    The FTSEurofirst 300 index of top European shares
shed 0.9 percent to 1,033.29. 	
    In Tokyo, the Nikkei rallied 1.2 percent, taking its
cue from Wednesday's rally on Wall Street and in Europe. 	
    	
 	
    	
    EURO, OIL FALL; BONDS RISE 	
    The euro was down 0.6 percent against the dollar at
$1.3111. The common currency was not expected to break out of
the lower end of the $1.30-$1.35 range it has traded in since
January.	
   Meanwhile the dollar gained versus other major currencies.
The dollar index rose 0.5 percent at 79.677. 	
   Renewed worries about weaker energy demand in the wake of the
disappointing Chinese growth data exerted downward pressure on
oil prices.	
   Brent crude futures in London lost 25 cents to
$121.46 a barrel. The front-month Brent contract is poised for a
fourth straight weekly decline, matching a similar losing streak
in late September. U.S. oil fell 37 cents to $103.28 per
barrel. 	
   In other commodities, spot gold prices fell 0.35
percent at $1,669.19 an ounce with losses capped on expectations
for further monetary easing from Beijing after the weaker
first-quarter growth data. 	
   In the bond trading, benchmark 10-year U.S. Treasury notes
 last traded up 17/32 in price with a yield hovering
at 2 percent. 	
    German Bund futures were up 65 basis points at
140.33, retracing the losses from the prior two days.