* World shares down 0.5 percent as growth worries resurface
* Weak German IFO business survey adds to economy concerns
* China Beige Book survey detects downturn in business
NEW YORK, Sept 24 Stock markets and the euro
dipped o n M onday as investors looked past recently announced
central bank stimulus plans to focus on weak German economic
data and the euro zone's unresolved debt crisis.
U.S. stocks mostly followed the global trend on the weak
German report. A China Beige Book survey detecting a downturn in
business optimism added to investor caution on the prospects for
global growth. The MSCI world equity index
fell 0.3 percent to 336.66.
"We've had such a strong quarter that it's difficult for us
to keep moving up, especially since we're so light on economic
news to trade on," said Oliver Pursche, president at Gary
Goldberg Financial Services in Suffern, New York. "We're maybe
in a sideways market without a lot of action for a while."
The Dow Jones industrial average was up 17.45 points,
or 0.13 percent, at 13,596.92. The Standard & Poor's 500 Index
was down 0.04 points, or 0.00 percent, at 1,460.11. The
Nasdaq Composite Index was down 13.68 points, or 0.43
percent, at 3,166.28.
Apple Inc was a big driver of the Nasdaq
Composite's fall on news it sold out of its new iPhone 5
smartphone, with the company saying more than five million sold
in the three days since it hit stores. Apple shares fell 1.6
percent to $689.18 on analysts' concern that the company was
unable to produce the phone quickly enough to meet demand.
EURO EXTENDS LOSSES
The euro extended losses against the U.S. dollar after a
disappointing survey on German business sentiment and
uncertainty over Spain and Greece undermined the euro zone
common currency. The euro was last down 0.4 percent at
$1.2925 and has shed around 1.5 percent from a four-month peak
reached on Sept. 17.
"German business sentiment as measured by the IFO dropped
further as investors remain reticent despite the European
Central Bank's 'bazooka' plan," said Christopher Vecchio,
currency analyst at Daily FX in New York.
The German data showed a drop in business sentiment for a
fifth successive month in September to its lowest level since
early 2010, showing even the strongest of Europe's economies is
succumbing to an economic downturn despite the European Central
Bank's recently announced bond-buying plan. European shares
lost 0.3 percent..
Other parts of the currency market reflected concerns
surrounding global economic health. The growth-linked Australian
dollar slid as a rally sparked by recent central bank
stimulus moves ran out of steam, while the yen and the
U.S. dollar, traditional safety zones, both firmed.
U.S. debt prices rose as weak euro zone data encouraged the
buying of low-risk government bonds, with the health of the
struggling global economy at the heart of investors' concerns.
The yield on 10-year U.S. Treasury notes fell to
1.7215 percent from 1.755 percent in late U.S. trade on Friday.
Spanish debt worries remained the other dominant theme in
Madrid is expected to present its 2013 draft budget plan
this week and announce new structural reforms. The results of
stress tests on the Spanish banking sector are also due.
These could set the stage for a full-scale bailout, although
European Union officials have said they do not expect Prime
Minister Mariano Rajoy to seek an assistance program before a
key regional election on Oct. 21.
The slow progress likely in Madrid is driving investors
gradually back into the safe-haven German debt market, keeping
the yield on 10-year safe Bunds capped.
The main commodity markets also moved lower as the
disappointing German data and a firmer dollar pressured prices.
Brent crude futures for November fell $1.66 a barrel to
$109.76. U.S. crude fell 1 percent to $91.92.