* Euro tumbles after surprise ECB rate cut
* European shares scale 5-year highs before retreating
* Wall St lower despite strong U.S. growth data; Twitter
* Brent oil slides to 4-month low beneath $104 a barrel
By Herbert Lash
NEW YORK, Nov 7 Stronger-than-expected U.S.
economic growth and a surprise interest rate cut by the European
Central Bank boosted the dollar on Thursday and helped push oil
prices to a four-month low, but stocks on both sides of the
The euro fell sharply against the dollar after the ECB cut
rates to a record low and said it would keep providing cheap
financing to banks to support the euro zone recovery.
Adding to the dollar's strength was data showing the
American economy grew in the third quarter at the quickest pace
in a year, suggesting the Federal Reserve may be able to cut
back its stimulus spending later this year. [ID:nL2N0IS0VU}
That suppressed Brent oil prices, which settled down $1.78
at $103.46 a barrel. U.S. crude settled down 60 cents at
$94.20. Plentiful crude supplies and progress in talks
over Iran's disputed nuclear program also weighed on oil.
Stocks tied to the energy sector fell , and
weak earnings from Whole Foods and Qualcomm Inc
weighed on the broader U.S. market.
"This morning's GDP report sent the dollar surging, and
anything commodity-based that was dollar-related just turned and
headed south," said Paul Mendelsohn, chief investment strategist
at Windham Financial Services in Charlotte, Vermont. "That just
rolled over into the rest of the (stock) market."
Twitter Inc shares, however, soared 72.6 percent in
their first day of trading. The shares opened at $45.10 after
pricing at $26 a share Wednesday, and rose as high as $50.
The Dow Jones industrial average ended down 152.90
points, or 0.97 percent, at 15,593.98. The Standard & Poor's 500
Index was down 23.34 points, or 1.32 percent, at
1,747.15. The Nasdaq Composite Index was down 74.61
points, or 1.90 percent, at 3,857.33.
MSCI's all-country world stock index fell
0.8 percent, while the pan-European FTSEurofirst 300 index
of leading regional shares closed little changed at
1,296.95. It had hit a five-year high after the ECB cut rates
but retreated on funding concerns for smaller banks.
Prices for U.S. Treasuries rose on the ECB's surprise rate
cut. A slowdown in consumer and business spending gave investors
pause after a report on U.S. third-quarter gross domestic
product prompted an initial sell-off. U.S. jobless claims also
fell in the latest week.
"The initial selling burst on the GDP headline couldn't be
sustained because the underlying numbers had just enough
weakness to make people wait for the payroll numbers tomorrow,"
said Jim Vogel, interest rates strategist with FTN Financial in
The benchmark 10-year U.S. Treasury note was up
7/32 in price to yield 2.6128 percent.
Economists polled by Reuters expect Friday's nonfarm
payrolls report to show employers added 125,000 jobs in October,
below September's tally of 148,000.
The pace of gains in the job market will likely play a big
role in determining when the Fed decides to begin reducing its
monthly bond purchases.
The ECB's decision to cut rates to a record low of 0.25
percent followed months of grumbling by governments and bankers
over the impact of a strong euro on the region's fragile
recovery and weak inflation rate.
The bank's dovish policy bias should cap future euro gains,
"With the Fed's easy money days seen increasingly numbered,
the ECB's more dovish and divergent outlook augurs meaningful
euro depreciation over the coming weeks," said Joe Manimbo,
senior market analyst at Western Union Business Solutions.
The euro last traded down 0.6 percent at $1.3434 after
hitting a seven-week low of $1.3356 after the ECB announcement.
. The dollar index, which values the greenback against six
major currencies, was up 0.3 percent at 80.71