GLOBAL MARKETS-Growth and debt crisis concerns drive shares, euro lower

* European shares fall 0.3 pct, MSCI global index down 0.6
pct
* Wall Street seen opening lower
* Dollar up 0.5 pct, euro falls on crisis woes
* China data indicates industry is contracting, output weak
* Spain bond yields fall at auction

By Marc Jones
LONDON, Sept 20 (Reuters) - Global shares, the euro and oil
prices fell on Thursday after weak Chinese and euro zone data
underlined worries about global economic growth.
World shares and other risk markets have lost momentum this
week with investors taking stock after the central banks of the
United States, Japan and euro zone outlined plans for economic
stimulus, driving a near 17 percent rise in the MNSI global
index since June.
Wall Street was expected to open lower on Thursday. U.S. S&P
stock futures pointed to a 0.3 percent drop at the start of
trade with investors likely to latch on to the downbeat European
and Asian mood.
"We have had the central banks come into action but some of
the euphoria has already evaporated and we are looking at the
economic data again which, generally speaking, are relatively
weak," said Rabobank strategist Philip Marey.
Marey pointed to the Philly Fed index series due at 1400
GMT. "Another weak number could confirm that things aren't going
as they should," he said.
A Reuters poll of 56 analysts sees the Philly Fed index
improving to -4.0 from -7.1. Unemployment and consumer
confidence data will also be released.
European equities were down 0.3 percent by 1215 GMT
and the MSCI world index was lower for the third time in four
sessions. Markets in London, Paris and Frankfurt fell between
0.5 and 0.7 percent.
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.

Of the national indexes, only Germany was brighter with the
manufacturing PMI at its highest level since March, although
still showing a contraction.
China's flash Purchasing Managers Index prompted the initial
market gloom as it remained below 50 for an 11th month in a row,
showing the sector was still shrinking.
"Activity in China is still weak and the Europeans are
scared to death," said a Brussels-based trader. "The Spanish
situation is nerve-wracking but I think Spain's problems are
well known."

GROWTH WORRIES
Spain's 10-year borrowing costs fell to their lowest level
since January at a debt auction, although the relief may be
brief as Prime Minister Mariano Rajoy hesitates over seeking an
international bailout which would open the way for the European
Central Bank to buy Spanish government bonds.
German government bonds, favoured by risk adverse investors,
remained in demand, however. Bund futures were up 29 ticks to
140.00, adding to the 150 tick rebound they have seen this week
having started at a 5-1/2 month low.
The weak data and the debt crisis worries also pushed the
euro further away from last week's 4-1/2 month high, hitting a
one week low of $1.294 before a small recovery..

Problems in Greece are back in focus after wrangling between
Athens and the "troika" of inspectors from the European
Commission, ECB and IMF over ways to stabilise 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.
Many economists agree. "What the market clearly wants is a
haircut for the official sector debt," said Tobias Blattner at
Daiwa Securities. "Even if they fix it again, find some tricks
to keep Greece in the euro and come up with the preparations
that show that Greek debt is sustainable, nobody will believe it
without a haircut (debt restructuring)."
China's weak data were felt widely across Asian and
commodity markets. Metals slipped with copper down over 1.5
percent and the Australian dollar, highly sensitive to its
biggest export partner, slipped 0.8 percent.
Brent crude prices fell below $108 a barrel as a
promise from Saudi Arabia to boost supply was compounded by
China's weak data. Spot gold, which is at its highest in
over half a year, dropped 0.5 percent to $1,759.89 an ounce.