(Repeats to additional subscribers)
* China, euro zone data weigh on global stocks
* Oil rallies after Barclays raises price forecasts
* Safe-haven dollar, Swiss franc, Treasuries advance (Updates prices)
By Wanfeng Zhou
NEW YORK, July 5 (Reuters) - World stocks fell from five-week highs on Tuesday, while the euro dropped broadly as concerns about further monetary tightening in China and soft euro-zone economic data made investors cautious.
Oil jumped more than $1 per barrel after Barclays Capital raised its 2012 forecasts for crude oil, outweighing worries over the global economy.
Media reports about a possible rate rise in China and a Moody's report saying the scale of problem loans at local governments in China may be much bigger than previously thought dented demand for risky assets. For more, see [nL3E7I507Y]
In the euro zone, a survey showed growth in the region's dominant service sector slowed for a third straight month in June, by more than an initial estimate, with sluggish new orders dimming the outlook. [nL3E7I5105]
Investors were also cautious about taking on more risk after the recent run-up in equities, with world stocks posting their best weekly gain in a year last week. U.S. stocks had their best week in two years last week.
"The market certainly could be headed for some sort of a pullback. We've had a strong performance over the past week and any slight disappointment would invite some profit-taking," said Peter Cardillo, chief market economist at Avalon Partners in New York.
World stocks as measured by the MSCI world equity index <.MIWD00000PUS> fell 0.2 percent on the day after earlier hitting their highest since June 1. The index has risen almost 5 percent since January.
U.S. stocks were little changed. At noon (1600 GMT), the Dow Jones industrial average <.DJI> was up 1.06 points, or 0.01 percent, at 12,583.83. The Standard & Poor's 500 Index <.SPX> was down 1.46 points, or 0.11 percent, at 1,338.21. The Nasdaq Composite Index <.IXIC> was up 5.05 points, or 0.18 percent, at 2,821.08.
Volume is expected to remain low in the holiday-shortened week, with all eyes on Friday's U.S. monthly jobs data. Markets were closed on Monday for the U.S. Independence Day holiday.
European stocks <.FTEU3> ended slightly higher in thin volume. Emerging market stocks <.MSCIEF> fell 0.2 percent.
In the oil market, ICE Brent futures for August
Barclays Capital raised its 2012 forecast for Brent by $10, to $115 per barrel, and upgraded its 2012 forecast for U.S. crude by $4, to $110.
"The increase in expectations is due to a forecast further reduction in global spare capacity in 2012, together with a significant intensification of the geopolitical background to the oil market," Barclays Capital said.
SAFE-HAVEN ASSETS IN DEMAND
Concerns about China and the global economy boosted demand for safe-haven assets such as the Swiss franc, gold and U.S. government bonds.
The euro earlier dropped 1 percent to a low of 1.22059 Swiss francs
Worries about Greece persisted even as Athens averted an immediate default following the approval by euro zone finance ministers of a 12 billion euro loan.
Greece suffered another setback on Monday after Standard & Poor's warned it would treat a possible rollover of privately held Greek debt as a selective default. [ID:nL6E7I408N]
The country needs a second aid package worth some 110 billion euros, which euro zone finance ministers said would be finalized by mid-September.
Against the dollar, the euro fell 0.5 percent to $1.4472
Losses in the euro were limited by expectations the European Central Bank would raise rates to 1.5 percent on Thursday and signal more tightening.
But Boris Schlossberg, director of currency research at GFT in New York, said the latest data from the region suggests that "growth has slowed significantly and may force (ECB President Jean-Claude) Trichet to re-evaluate any further tightening for the rest of the year."
Jitters over Greece pushed U.S. government debt prices higher and helped put on the back burner, for now, concerns over the risk of a possible U.S. default. The benchmark 10-year note
Spot gold