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GLOBAL MARKETS-World growth worries weigh on markets, but Wall St rises
November 20, 2014 / 5:33 PM / 3 years ago

GLOBAL MARKETS-World growth worries weigh on markets, but Wall St rises

* Shares fall after weak euro zone, China PMI data
    * Wall Street gains on U.S. factory, housing data
    * China flash PMI shows contraction in factory output
    * Yen touches seven-year low vs dollar

 (Adds U.S. stocks gains, latest prices)
    By Michael Connor
    NEW YORK, Nov 20 (Reuters) - World stock markets slipped on
Thursday on signs the Chinese and European economies were
cooling, while Japan's yen slid to a seven-year low against the
dollar on expectations of more Japanese stimulus.
    Wall Street prices rose as U.S. data on factory activity in
the mid-Atlantic region and the housing market offset worries
about global demand. But the troubling data on the global
economy fueled price gains in U.S. government debt.
    The MSCI index of world stocks was flat,
while a gauge of European stocks provisionally closed
down 0.3 percent.
    The data from purchasing managers indexes showing "slowing
growth in China and the euro zone helped put risk appetite on
the back foot," said strategist Gennadiy Goldberg at TD
Securities in New York.
    The China flash HSBC/Markit manufacturing purchasing
managers' index showed factory output contracted in the world's
second-biggest economy for the first time in six months.
.
    In Europe, signs were equally gloomy. The private sector in
Germany grew at its slowest pace in 16 months, and in France a
slight pick-up was overshadowed by the fastest drop in new
orders in more than a year.  
    With the data adding pressures on the European Central Bank
as it ponders possible asset-buying schemes, euro zone
government bond yields fell and the euro fell for the
first time in three days. The yield on Germany's 10-year Bund
fell to 0.8 percent. 
    The yen hit a seven-year low against the dollar and
slid to a six-year low against the euro despite the
weak euro zone data. The euro last traded at $1.2520, off
an overnight three-week high of $1.2602.
    The yen last traded at 118.22 to the dollar.
    Wall Street's Dow Jones industrial average rose 5.4
points, or 0.03 percent, to 17,691.13, the S&P 500 gained
4.09 points, or 0.2 percent, to 2,052.81, and the Nasdaq
Composite added 22.12 points, or 0.47 percent, to
4,697.84.
    Data from the Philadelphia Federal Reserve Bank showed that
factory activity in the U.S. mid-Atlantic region grew at its
fastest pace in two decades, while industry data showed U.S.
home resales jumped to their highest in more than a year in
October. And a gauge of future U.S. economic activity gained
more than expected last month. 
    U.S. Treasury debt prices rose as many investors sought
safety in government bonds. Benchmark 10-year U.S. Treasury
notes were up 2/32 in price to yield 2.34 percent
from 2.36 percent late Wednesday.
    Brent oil rallied ahead of what is shaping up to be
a landmark OPEC meeting next week. It was last at $78.76 a
barrel, up 67 cents. U.S. crude was up 33 cents at
$74.91. 

 (Reporting by Michael Connor in New York; Editing by Dan
Grebler and Leslie Adler)

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