GLOBAL MARKETS-Shares tick lower but rebound off lows

* U.S. and European shares fall, oil rebounds after slump
* Chinese data shows manufacturing contracts for 11th month
* Dollar rises broadly; euro falls on crisis woes
* Spain bond yields fall at auction to lowest since January

By Ryan Vlastelica
NEW YORK, Sept 20 (Reuters) - World stocks fell on Thursday
but ended off their lows in a sign that while concerns remain
about global growth prospects, positive sentiment hadn't been
eradicated.
The euro weakened on data showing contractions in Chinese
and euro zone manufacturing and signs of a struggling U.S.
economy. Crude oil rebounded after three days of steep losses,
helping equities recover from session lows as energy shares
rose. Still, the price of Brent remains down 6 percent on the
week on concerns about demand prospects.
World shares and other risk markets have lost momentum this
week, but that follows a strong period where the central banks
of the United States, Japan and the euro zone outlined plans for
economic stimulus. The MSCI global index has
gained 17 percent since June.
Markets are grappling with whether prices ran "ahead of
themselves a little bit too fast," said Philip Wagner, senior
vice president at Bryn Mawr Trust in Devon, Pennsylvania. "You
look at the data here today, specifically, nothing is a positive
surprise so it doesn't really give the bulls more enthusiasm."
The Dow Jones industrial average was up 19.20 points,
or 0.14 percent, at 13,597.16. The Standard & Poor's 500 Index
was down 0.78 points, or 0.05 percent, at 1,460.27. The
Nasdaq Composite Index was down 6.66 points, or 0.21
percent, at 3,175.96.
European equities closed 0.1 percent lower, and the
MSCI world index shed 0.54 percent.
"For now, this is a pause in the rally, not the start of a
correction. Investors are taking a breather. Indexes are testing
key support levels and they are holding," FXCM analyst Nicolas
Cheron said.
Hong Kong's Hang Seng index lost 1.2 percent.
In the currency market, the euro fell 0.63 percent
while the U.S. dollar index rose 0.47 percent.
The euro was pushed further from last week's 4-1/2-month
high, hitting a one week low of $1.294 before a small recovery.
Demand for safe-haven assets rose, pushing up the benchmark
10-year U.S. Treasury note price by 1/32, with the
yield at 1.7701 percent.
U.S. manufacturing closed out its weakest quarterly growth
rate in three years this month, according to data on Thursday.
Contraction in factory activity in the U.S. mid-Atlantic region
for a fifth straight month in September also drove home the weak
tone that overhangs the U.S. economy.
The euro zone purchasing managers index data underlined the
effect of the bloc's debt crisis. The composite PMI, which
combines data from the manufacturing and services surveys, fell
to 45.9 from 46.3 in August, its lowest since June 2009. A
figure below 50 indicates contraction.
Of the European national PMIs, Germany managed to show
improvement, with the manufacturing PMI hitting its highest
since March, but still at a level indicating contraction.
China's flash purchasing managers index prompted the initial
market gloom as it remained below 50 for an 11th month in a row.

"Global growth worries have returned to the surface. It's
weighing once again on investor confidence and giving a boost to
both the dollar and yen," said Joe Manimbo, senior market
analyst at Western Union Business Solutions in Washington.

GROWTH WORRIES
Spain's 10-year borrowing costs fell to their lowest since
January at a debt auction on Thursday, although the relief may
be brief as Prime Minister Mariano Rajoy hesitates over seeking
an international bailout that would open the way for the
European Central Bank to buy Spanish government bonds.

German government bonds, favored by risk-averse investors,
remained in demand. Bund futures were up 0.16 percent
to 140.17, adding slightly to the rebound seen in a week where
they began at a 5-1/2-month low.
Brent crude prices rose 2.1 percent to $110.47.
Prices had fallen recently after Saudi Arabia promised to boost
supply. Spot gold, which is at its highest in over half a
year, dropped modestly to $1,768.10 an ounce.
Problems in Greece are back in focus after wrangling between
Athens and inspectors from the European Commission, the ECB and
the International Monetary Fund over ways to stabilize the
country's debts. The head of one of Germany's biggest banks,
Commerzbank, warned on Thursday he thought another Greek debt
restructuring would be needed.
China's weak data were felt widely across Asian and
commodity markets. Metals slipped, with copper down over 1.5
percent, while the Australian dollar, highly sensitive to its
biggest export partner, fell 0.8 percent.