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GLOBAL MARKETS-Stocks flat, euro falls on economic worries

Published 09/08/2011, 10:14 AM
Updated 09/08/2011, 10:16 AM

* Investors look to govt, central bankers for econ boost

* Markets await Fed's Bernanke's speech, Obama jobs plan

* ECB rates unchanged, Trichet sees downside growth risks

NEW YORK, Sept 8 (Reuters) - Global stocks were little changed and the euro fell on Thursday as worries over worsening economic conditions in Europe and the United States clamped down appetite for riskier investments.

Nervous investors piled back into gold, German and U.S. government bonds and other assets perceived as safe havens.

A surprise increase in weekly U.S. jobless claims and remarks by European Central Bank President Jean-Claude Trichet about downside risks to the euro zone's economy fueled fears that both the United States and Europe are at risk of slipping into recession.

As global growth slows and Europe's debt crisis rages on, investors are waiting for moves from government officials and policymakers in the hope that they could provide the needed lift for the economy and investor confidence, despite doubts over their effectiveness.

Fed Chairman Ben Bernanke will deliver a speech on the U.S. economic outlook at 1:30 p.m. (1730 GMT) to the Economic Club of Minnesota, but he is unlikely to announce any new measures to boost the economy. [nN1E7860OB]

U.S. President Barack Obama will deliver a televised speech to Congress at 7 p.m. (2300 GMT), in which he is expected to propose tax cuts for middle-class households and businesses and new spending to repair roads, bridges and other infrastructure. For details, see [nN1E786157]

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Later this week, G7 finance ministers and central bankers will convene in Marseilles, France.

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Graphic on interest rate expectations

http://link.reuters.com/pej23s

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By the middle of the morning, the Dow Jones industrial average <.DJI> was down 27.81 points, or 0.24 percent, to 11,387.05. The Standard & Poor's 500 Index <.SPX> fell 5.46 points, or 0.46 percent, to 1,193.16. The Nasdaq Composite Index <.IXIC> shed 8.18 points, or 0.32 percent, to 2,540.76. For the U.S. stocks report, see [.N]

World stocks as measured by MSCI <.MIWD00000PUS> were up 0.1 percent, helped by a 0.3 percent gain of Tokyo's Nikkei <.N225>. The MSCI world index has recovered somewhat from the August correction -- the worst monthly loss since 2008 -- but the index is 16 percent below the 2011 highs hit in May.

The FTSEurofirst 300 index <.FTEU3> of top European shares was up 0.6 percent, after trimming earlier gains on ECB's decision to leave key rates alone.

In the wake of ECB's decision, the euro fell to a session low of $1.3947

The yield on U.S. 10-year Treasuries

In the precious markets market, spot gold prices

(Additional reporting by Chuck Mikolajczak and Gertrude Chavez-Dreyfuss in New York; Anriban Nag, Kirsten Donovan and Jeremy Gaunt in London; Writing by Richard Leong, Editing by Chizu Nomiyama)

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