* Global stocks fall on fears of worsening European crisis
* Switzerland moves to slow safe haven flows into franc
* Benchmark German and U.S. debt yields near historic lows
* Gold slips from record high, still near $1,900 an ounce (Updates with U.S. services data)
By Richard Leong
NEW YORK, Sept 6 (Reuters) - Global stock markets fell on Tuesday on fears of the European debt crisis worsening, while the Swiss franc sagged against the euro after Switzerland's central bank sought to slow the safe-haven stampede into its currency.
Nervous investors channeled cash into less risky assets as doubts resurfaced over Italy and Greece's willingness to implement tough budget and debt measures demanded by other euro zone members, while Germany hardened its stand against giving them more aid. For more, see [ID:nL5E7K61RE]
The Swiss central bank's move to peg its currency to the euro at 1.20 francs reduced the safe-haven appeal of gold, but the precious metal was not far from its record high above $1,900 an ounce.
U.S. and German government debt, perceived as safer assets amid the turmoil, rallied and pushed benchmark yields to historic lows.
"Market concerns have resurfaced regarding the euro debt struggles and global economic stability. This is driving fear among investors and bringing an atmosphere of reduced equity exposure," said Andre Bakhos, director of market analytics at Lek Securities in New York. ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Insider show, click on:
http://link.reuters.com/bab63s
BREAKINGVIEWS column: [nL5E7K61GT]
Graphic on move in EURCHF: http://link.reuters.com/mab63s
Gold correlation with dollar: http://r.reuters.com/ryx52s
Inflation adjusted gold price: http://r.reuters.com/pun62s ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Wall Street stocks <.DJI> <.SPX> <.IXIC> were down more than 2 percent after a three-day holiday weekend with Friday's U.S. jobs report, which showed zero net jobs growth, also hurting investor confidence. [.N]
The pan-European FTSEurofirst 300 <.FTEU3> was down 0.7 percent after falling more than 4 percent on Monday on renewed worries about Europe's ability to solve its debt problems.
U.S. and European equities briefly pared their losses after a U.S. industry report showed that growth in the services sector unexpectedly improved in August. [ID:nEAPA60DM0]
This snapshot soothed some worries that the world's biggest economy is on the brink of recession, but not enough to scale back expectations that the Federal Reserve would engage in another round of monetary stimulus to boost U.S. growth.
"When something like Europe is dominating, we would have to have a giant surprise to change the tone. Bears are running the Street right now," said Todd Schoenberger, managing director with LandColt Trading at Lewes, Delaware.
World stocks as measured by MSCI <.MIWD00000PUS> fell 2.0 percent, while Japan's Nikkei <.N225> closed off 2.2 percent.
After the Swiss National Bank announcement, the euro was trading at just above the central bank's new target of 1.20 Swiss francs
The euro also firmed against the dollar, trading at $1.4084
Ten-year German and U.S. government debt yields
The Swiss central bank's move rocked a number of other assets, notably gold