* World stock index turns negative after JPMorgan result
* JPM reports Q4 net income $3.3 bln; retail banking weighs
* Dlr rise pushes euro down almost 1 pct; Bunds rise
* More US data awaited
(Updates throughout)
By Sujata Rao
LONDON, Jan 15 (Reuters) - Investors sold shares and stepped
up bids for safe-haven bonds and the U.S. dollar, despite a big
earnings jump from JPMorgan <JPM.N> which analysts said did not
do anything to significantly improve the U.S. recovery picture.
The results -- fourth-quarter 2009 net income of $3.3
billion -- come on the heels of tepid U.S. data and a lacklustre
earnings season so far which have kept alive worries about the
global and especially U.S. growth.
The New-York based bank reported a quarterly profit of 74
cents a share, a huge rise on the year earlier quarter but $25.2
billion revenue number was below expectations. JPMorgan shares
were down 2 percent.
Equity gains earlier in the session were capped despite
upbeat earnings from chipmaker Intel Corp <INTC.O> and by 1230
GMT world stocks <.MIWD00000PUS> had turned mildly negative,
retreating more off 15-month highs hit earlier in the week.
European stock markets <> which had opened firmer on
back of the Intel results, reversed gains to trade down 0.2
percent with banks bearing the brunt of the selling.
Analysts said buoyant headline numbers were overshadowed to
some extent by loan losses and high bad-debt provisions.
"JPMorgan top-line results were disappointing... there were
pressures on credit card lending and retail banking and it just
shows the U.S. economy is far from out of the woods yet," said
David Buik, partner at BGC Partners in London.
Reflecting these worries, U.S. stock futures <SPc1> extended
losses, falling 0.4 percent.
Wall Street closed only marginally up on Thursday as weak
U.S. retail sales data and a rise in jobless claims outweighed
the Intel results [] [].
DOLLAR, YEN, BONDS GAIN
The dollar extended gains pushing the euro to the day's lows
while Bund futures rose after the JPMorgan announcement.
The euro, already under pressure from worries over the
struggling Greek economy and the growing public debt burden in
some euro zone economies, slid almost one percent to $1.4367,
compared with around $1.4390 before the results.
Against a currency basket, the greenback was up over half a
percent <.DXY>.
Bund futures rose 10 ticks to 122.35 while the 10-year Bund
yield <EU10YT=RR> slipped to 3.284 percent from 3.299 percent
earlier in the session.
More corporate earnings are due next week but investors now
await U.S. CPI and manufacturing data due at 1330 GMT and 1415
GMT respectively.
Geoff Lewis, head of investment services at JP Morgan Asset
Management in Hong Kong, said corporate earnings alone will not
lift markets for long.
"You still have to see continued good news on the economic
front to validate improvements in corporate earnings forecasts,"
said. "Markets will want to see evidence of strength in private
sector demand ... it's important the economy stand on its feet
after the public fiscal stimulus starts to fade."
(Editing by Andy Bruce)
