* Earnings worries hit equities
* Europe down 0.3 percent, emerging stocks fall 2.2 percent
* Oil briefly dips below $59 barrel
By Jeremy Gaunt, European Investment Correspondent
LONDON, July 13 (Reuters) - World stocks fell on Monday,
with particularly heavy losses in emerging markets, as investors
fretted about a coming wave of corporate earnings and confidence
in a rapid global economic recovery faded.
Oil dipped briefly below $59 a barrel in a sell-off prompted
by concern over a tailing off of demand if the economy stutters
again. <CLc1>
"I don't think we will see an economic recovery this year
and ... earnings estimates are still too high, so there is room
for disappointment," Philippe Gijsels, senior equity strategist
at Fortis Bank, in Brussels.
World stocks as measured by MSCI <.MIWD00000PUS> lost close
to three quarters of a percent. The FTSEurofirst 300 <>
index of top European shares was down 0.3 percent after hitting
an 11-week low.
The slide was not arrested by Dutch conglomerate Philips
Electronics <PHG.AS> surprising the market with a return to
profit in the second quarter and saying it was hopeful of an
upturn in business in the second half of 2009.
Emerging markets suffered more acutely, taking the MSCI
sector index <.MSCIEF> down 2.2 percent. The sector has been the
big winner as investors have banked on a recovering economy, so
would likely unwind quicker if a major correction set in.
So far in the U.S. earnings season, two major U.S. companies
had reported, giving investors mixed signals. Bellwether Alcoa
<AA.N> reported a third consecutive quarterly loss, but beat
estimates; oil major Chevron <CVX.N> warned that second-quarter
earnings would be hit by a decline in U.S. refining margins.
Among U.S. companies reporting this week are Goldman Sachs
<GS.N>, JP Morgan <JPM.N>, Bank of America <BAC.N>, Citi (C.N>,
IBM <IBM.N>, Google <GOOG.O>, Intel <INTC.O> and GE <GE.N>.
European reports will come from Nokia <NOK1V.HE>, Alstom
<ALSO.PA>, Novartis <NOVN.VX> and Pernod Ricard <PERP.PA>.
YEN RISES
The dollar dipped 0.2 percent to 92.35 yen <JPY=>, inching
back in the direction of a five-month low of 91.77 yen hit on
trading platform EBS on Friday.
The euro rose 0.1 percent to $1.3945 <EUR=>
"The theme is likely to continue to be whether risk can be
taken or not," said Minoru Shioiri, chief manager for FX trading
at Mitsubishi UFJ Securities.
The dollar and yen have fallen broadly since March, as hopes
grew that the worst of the global economic recession was over,
boosting risk appetite and prompting investors to shift funds
out of the safe-haven dollar and low-yielding yen into other
currencies and assets.
But in recent weeks, market players have reversed the trend.
On euro zone government bond markets, the interest
rate-sensitive two-year Schatz yield <EU2YT=RR> was steady at
1.21 percent.
(Additional reporting by Atul Prakash and Masayuki Kitano,
editing by Mike Peacock)
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