Global stocks, dollar slide; oil dips

By AGENCIES

Published: Jul 30, 2010 22:59 Updated: Jul 30, 2010 22:59

NEW YORK: Global stocks and the US dollar slid on Friday as investors trimmed risk exposure on data showing the US economy slowing a bit more than expected while other news suggested a slow, steady recovery.

The dollar fell to multi-month lows against the Japanese yen and gold rose back above $1,170 an ounce after data on U.S. gross domestic product mostly confirmed slow growth for investors.

But European stocks recovered from a sharp fall to close only slightly lower and US stocks pared losses on separate, mixed signals from US data.

The US Commerce Department said GDP expanded at a 2.4 percent annual rate in the second quarter, less than the 2.5 percent pace analysts polled by Reuters said they expected.

Stocks on both sides of the Atlantic were down at one point by 1 percent after the release of the GDP data, but a jump in the Chicago Purchasing Managers Index suggested a slow but steady economic recovery was spurring buying.

The business barometer rose to 62.3 in July, higher than a forecast of 56.5. Yet in a separate report, consumer sentiment slumped to a 9-month low, emblematic of a fragile economy.

Global stocks as measured by MSCI's all-country world index and its emerging market index both trimmed losses to fall about 0.3 percent.

The FTSEurofirst 300 index of top European shares fell 0.3 percent to close down at 1,043.66 points. The index rose 5.3 percent in July, the most in four months.

Before 1 p.m., the Dow Jones Industrial Average was down 13.51 points, or 0.13 percent, at 10,453.65. The Standard & Poor's 500 Index was down 0.98 points, or 0.09 percent, at 1,100.55. The Nasdaq Composite Index was up 2.49 points, or 0.11 percent, at 2,254.18.

Dollar bears sold the US currency versus the yen on news of the GDP data.

The dollar was down against a basket of major currencies, with the US Dollar Index down 0.07 percent at 81.582.

The euro was down 0.26 percent at $1.3043, and against the yen, the dollar was down 0.38 percent at 86.43.

Spot gold prices rose $12.42 to $1,178.80 an ounce.

Oil prices dipped Friday. Benchmark crude for September delivery fell 25 cents to $78.11 a barrel in midday trading on the New York Mercantile Exchange. Benchmark crude began the month just shy of $73 a barrel. ¬