GLOBAL MARKETS-US stocks sag on healthcare ruling, euro falls

* U.S. healthcare stocks fall after top court decision
* JPMorgan, Barclays lead world bank shares lower
* Euro falls to three-week lows on low EU summit hopes
* Data raise worries about global economic growth

By Richard Leong
NEW YORK, June 28 (Reuters) - U.S. stocks fell on Thursday
after the U.S. Supreme Court upheld the Obama administration's
healthcare overhaul law, while the euro hit a three-week low as
divisions among European leaders at a meeting in Brussels
further diminished hopes of urgent measures to tackle the
region's debt crisis.
The court upheld the centerpiece of President Barack Obama's
healthcare reform law that requires most Americans to get
insurance by 2014 or pay a fine. Republican leaders and other
opponents who claim the law is too costly and an over-reach of
government power vowed to repeal it.
U.S. healthcare sector stocks were generally weaker
after the ruling, while stocks that stand to benefit from more
government business rallied.
Financial shares took a beating after British bank Barclays
plc paid record fines in a probe of its manipulation of
interbank loan rates. A newspaper report saying U.S. bank
JPMorgan's losses on recent botched trades could reach
$9 billion also hurt the banking sector.
Investors turned more cautious after data showed the U.S.
economy is losing momentum, while Germany's unemployment rose in
June, posing a risk for global growth.
Also weighing on investor sentiment was the issue of whether
Obama and Congress will agree to extend tax cuts and
unemployment benefits before year-end. Traders fear a failure to
do so could tip the United States back into recession.
"There is an overhang from Europe and here on Capitol Hill.
That's creating pessimism and pessimism brings low
expectations," said Jack Ablin, chief investment officer at
Harris Private Bank in Chicago.
Analysts said that with the market so focused on the outcome
of the European summit, trade in stocks and the euro would
remain choppy, driven by headlines from the meeting.
European Union leaders will ask the bloc's top four
officials to develop the building blocks they have identified so
far into a detailed, time-bound roadmap to a genuine economic
and monetary union, draft conclusions of the EU leaders' summit
showed.
German Finance Minister Wolfgang Schaeuble denied a report
that his country could be willing to move sooner than expected
to accept shared liability of euro zone debt, reinforcing the
notion there would be little progress toward a crisis solution
at the meeting.
This propelled yields on 10-year Spanish bonds
above 7 percent and 10-year Italian debt to 6.25
percent. These are seen as unsustainable borrowing costs for the
euro zone's third- and fourth-biggest economies.

Wall Street's three major stock indexes were more than 1
percent lower, led by losses in banking and healthcare.
In light, choppy trading, the Dow Jones industrial average
was down 147.81 points, or 1.17 percent, at 12,479.20.
The Standard & Poor's 500 Index was down 16.13 points, or
1.21 percent, at 1,315.72. The Nasdaq Composite Index
was down 53.35 points, or 1.86 percent, at 2,821.97.
The S&P healthcare index was down 1 percent while
the Morgan Stanley healthcare payor index was last up 0.3
percent after dropping 1 percent shortly after the high court
narrowly upheld the landmark law that requires most Americans to
buy healthcare insurance.
Shares of large health insurers fell, with Wellpoint
almost 5 percent lower at $66.02, while Centene Corp and
Molina Healthcare, which specialize in Medicaid programs
for the poor, rose 2.2 percent and 7.4 percent at $30.65 and
$22.90, respectively.
JPMorgan shares were down $1.50, or 4 percent, at
$35.30 after the New York Times, citing people briefed on the
situation, reported losses from a soured credit derivative trade
could be as much as $9 billion after the U.S. bank said in May
it had lost $2 billion on the trade.
The FTSEurofirst 300 index of top European company
shares ended down 0.5 percent at 995.14. The STOXX European
banking index closed down 2.36 percent.
Barclays stock shed 15.5 percent at 178.65 pence after the
bank agreed to pay a $453 million fine for manipulating interest
rates on the London interbank market.
In Tokyo, the Nikkei index finished up 1.65 percent.
MSCI's world equity index fell 0.68 percent
to 301.52, bringing its quarter-to-date decline to close to 10
percent.
The euro fell 0.43 percent to $1.2417 after touching
a three-week low versus the dollar at $1.2405.
The dollar index was up 0.23 percent at 82.804 after
touching its highest level in about 1-1/2 weeks.
The move to lower-risk investments fed bids for U.S.
Treasuries and German Bunds. Benchmark 10-year Treasury notes
were up 13/32 in price at 101-19/32 to yield 1.57
percent, down nearly 5 basis points, while Bund futures
were up 0.7 percent at 141.80.
Anxiety about slowing global growth and the outcome of the
EU summit stoked selling in oil and other commodities.
Gold fell to its lowest since June 1. It last traded
down 1/4 percent at $1,550.50 an ounce.
Brent crude futures in London fell $1.88, or 2.01
percent, to $91.62 a barrel, while U.S. oil futures
dropped $2.21, or 2.74 percent, at $78.00 a barrel.