* Ireland turns spotlight back onto euro zone debt
* Disappointing Cisco outlook weighs on Wall St
* Gold erases gains as dollar strengthens
(Updates with U.S. markets' close)
By Daniel Bases and Walter Brandimarte
NEW YORK, Nov 11 (Reuters) - The euro fell to a five-week
low on Thursday on concerns about Ireland's ability to repay
its debt while earnings fears knocked U.S. stocks lower after a
technology bellwether Cisco Systems gave a dismal outlook.
Gold prices rose on escalating concerns about debt in some
euro zone economies, overcoming a stronger U.S. dollar which
makes the metal more expensive to trade. Oil prices were
unchanged, with news of strong Chinese demand offset by the
rise of the greenback.
Equities in Tokyo were poised on Friday to mirror weak U.S.
trade. The December futures contract for the Nikkei 225 stock
index <0#NK:> trading in Chicago fell 30 points to 9840.
Yields on 10-year Irish bonds rose to a record high over
comparable German debt as investors speculated Ireland will
soon need financial help to service its debt. For details, see
[].
Ireland's Finance Minister Brian Lenihan admitted the surge
in borrowing costs had become "very serious," but European
officials denied for a second day that Dublin was seeking
financial aid -- echoing the denials heard six months ago when
Greece needed an EU/IMF bailout.
"The market has gone back to focusing on Europe rather than
the U.S., where rates are currently very low," said Greg
Anderson, G10 FX strategist at Citigroup in New York. "It has
become a game of 'Which currency do you dislike the most?' and
right now that currency is the euro."
The euro <EUR=> fell as low as $1.3637, a five-week nadir,
and was last down 0.9 percent at $1.3655 <EUR=EBS>. It also
posted losses against the yen <EURJPY=> and hit a seven-week
low against sterling <EURGBP=>.
The dollar strengthened against major currencies, with the
U.S. Dollar Index <.DXY> up 0.64 percent. Also supporting the
greenback was a U.S. think tank report saying the Federal
Reserve may scale back its latest plan to buy government
bonds.
Against the Japanese yen, the dollar <JPY=> was up 0.3
percent at 82.51 yen.
Europe's woes diverted attention from a G20 summit in South
Korea, where major rich and developing countries tried to
hammer out an agreement to reduce global economic imbalances
and avoid competitive currency devaluations. []
TECH WEIGHS ON WALL ST
Technology shares led a slide on Wall Street after a
disappointing outlook from Cisco Systems Inc <CSCO.O>, the
world's top manufacturer of computer routers and switches.
[]
The Dow Jones industrial average <> fell 73.94 points,
or 0.65 percent, to 11,283.10. The Standard & Poor's 500 Index
<.SPX> lost 5.17 points, or 0.42 percent, at 1,213.54. The
Nasdaq Composite Index <> dropped 23.26 points, or 0.90
percent, to 2,555.52.
Cisco's shares fell more than 16 percent to close at $20.52
after Chief Executive John Chambers cautioned about short-term
challenges in Europe and purchases by public-sector customers.
European stocks ended little changed, with investors uneasy
about the situation in Ireland. The FTSEurofirst 300 <>
index of top European shares lost 0.07 percent after falling
0.7 percent on Wednesday. The index is up 71 percent since a
record low in March 2009 but only 6 percent higher in 2010.
"It's time to book profits, that's what we're doing. The
market is ripe for a correction," said Jean-Yves Dumont, head
of asset allocation strategy and funds at Dexia Asset
Management, which turned "underweight" on equities on
Wednesday.
U.S. gold futures for December delivery <GCZ0> settled up
$4 at $1,403.30 an ounce, however spot prices fell 65 cents, or
0.05 percent, to $1408.20 <XAU=>.
Trade was volatile as the strength of the greenback took
off some of its shine.
"Gold is resuming its role as a safe haven in times of
crisis as the situations in Ireland and some European countries
are getting worse. So, it has also been separating itself from
the euro lately because of the safe-haven play," said Donald
Selkin, chief market strategist at National Securities Corp.
U.S. crude oil prices <CLc1> settled unchanged at $87.81 a
barrel.
The U.S. bond market was closed for Veterans Day.
(Additional reporting by Frank Tang, Jan Harvey, Edward Krudy
and Steven C. Johnson, Blaise Robinson; Editing by Diane
Craft)
