Global stocks slide, bonds up, US dollar jumps

By Herbert Lash

NEW YORK (Reuters) - Global stocks fell sharply on Monday after weak U.S. manufacturing data and record job losses in Europe raised concerns about the world's economic health while boosting the safe-haven appeal of U.S. and euro zone debt.

The U.S. dollar gained broadly after Russia expressed confidence in the greenback as the world's reserve currency, and the euro extended losses after the European Central Bank said euro zone banks face another $283 billion in write-downs.

Crude oil fell more than 3.0 percent to below $70 a barrel in a further retreat from a near eight-month high. Nickel, zinc and lead prices tumbled more than 6.0 percent, while copper also slid after the manufacturing data signaled demand remains weak.

Gold slipped toward $930 an ounce, pressured by the firmer dollar while easing crude prices dampened bullion's appeal as a hedge against the potential of oil-induced inflation.

Gains in the dollar, which makes oil and other dollar-based commodities more expensive for holders of other currencies, helped pressure prices. <USD/>

U.S. stocks sold off broadly on a reading from the New York Federal Reserve's "Empire State" general business conditions index, which fell to minus 9.41 in June from minus 4.55 in May.

"We've got a little bit of cold water thrown on the manufacturing sector's recovery after seeing some persistent improvements. We're now back down a little bit," said Eric Lascelles, chief economics and rates strategist at TD Securities in Toronto.

At 1 p.m. (1700 GMT), the Dow Jones industrial average .DJI was down 194.46 points, or 2.21 percent, at 8,604.80. The Standard & Poor's 500 Index .SPX was down 22.67 points, or 2.40 percent, at 923.54. The Nasdaq Composite Index .IXIC was down 46.98 points, or 2.53 percent, at 1,811.82.