* MSCI World index down 0.7 pct, European index down 1.4 pct
* Thursday's sharp sell-off on Wall Street takes global toll
* Safe-haven dollar, bonds trade near break-even
(Adds opening of U.S. markets, byline, dateline; previous
By Herbert Lash
NEW YORK, April 11 Global equity markets fell on
Friday as fears on Wall Street about over-stretched stock
valuations spread to Asia and Europe, even as Wall Street staged
a modest comeback and safe-haven bonds and the dollar traded
The Nasdaq composite, which has been pounded in recent days
as investors bailed out of high-flying technology and
biotechnology shares, traded near break-even. The Nasdaq on
Thursday recorded its biggest drop in two-and-a-half years. The
benchmark S&P 500 index also pared losses on Friday to trade
The Nasdaq biotech index, after falling more than 20
percent from a recent high, rose 1.6 percent.
A benchmark of global equities fell to a two-week low,
spurred by a broad risk-averse tenor among investors that led to
sell-offs in higher-yielding currencies and emerging market
"There's been contagion from the correction in the U.S.
which is probably not over. But the fact is, this is mostly a
U.S. correction," said David Thebault, head of quantitative
sales trading at Global Equities in Paris.
"People are getting out of overvalued sectors and looking
for bargains elsewhere. The market's positive longer-term trend
is still intact, this pull-back will just remove the froth," he
The slide in global equities persisted in the wake of
disappointing quarterly results from JPMorgan Chase & Co.
, the biggest U.S. bank. This exerted more pressure on
the benchmark Standard & Poor's 500 index, which on
Thursday suffered its biggest one-day drop in two months.
Shares of JPMorgan sank 3.1 percent to $55.63, and the S&P
financial index lost 0.4 percent and was the worst
performing S&P sector.
Benchmark 10-year Treasuries notes pared gains
to trade flat to slightly lower, after earlier trading 4/32
higher in price yield 2.614 percent,
"This equity market meltdown has brought a 'fear' bid into
bonds," said Larry Milstein, head of government and agency
trading at R.W. Pressprich & Co. in New York.
MSCI's all-country world equity index fell
to lows last seen in late March and was last trading down 0.7
European technology stocks led sectoral falls with a
2.5 percent decline, echoing U.S. declines. The tech sector in
Europe had rallied more 40 percent since November 2012 through
the start of April.
The pan-European FTSEurofirst 300 of leading
regional shares fell 1.4 percent to 1,312.61.
On Wall Street, the Dow Jones industrial average fell
33.72 points or 0.21 percent, to 16,136.5. The S&P 500
lost 0.55 points, or 0.03 percent, to 1,832.53 and the Nasdaq
Composite added 6.998 points, or 0.17 percent, to
The dollar index, which measures the greenback against six
major currencies, rose 0.12 percent, and the dollar edged higher
against the yen, up 0.15 percent. The euro rose slightly against
"Bad news for the world is good news for the dollar," said
Steven Englander, managing director and global head of G10 FX
strategy at CitiFX in New York. "Once fears about the equity
market intensified, they picked up a more conventional type of
mode to buy the dollar."
Brent oil futures gained slightly. Brent crude was
up 27 cents at $107.73 a barrel. U.S. oil was up 61 cents
at $104.01 a barrel.
(Reporting by Herbert Lash; Additional reporting by Atul
Prakash in London; Editing by Leslie Adler)