* Investors pare growth outlook on Greek debt worry
* Chinese inflation, weak Japanese and US data also weigh
* Gold, bonds attract safehaven flows
* U.S. oil prices rise on weaker dollar
(Updated market action, adds fresh quote)
By Richard Leong
NEW YORK, April 14 (Reuters) - Stocks on major world
markets fell and the U.S. dollar slipped on Thursday as
Greece's debt problem, Chinese inflation and disappointing U.S.
jobs data stoked worries over a global economic slowdown.
Bonds and gold rose as uneasy investors shifted funds into
less risky investments.
"We do have to scale back growth expectations. The market
is more concerned about what growth will be like with rising
input costs," said Jerry Webman, senior investment officer and
chief economist at OppenheimerFunds in New York. "People are
looking at 'risk-off' trades."
U.S. oil prices climbed on the weaker dollar.
World stocks, as measured by the MSCI world index
<.MIWD00000PUS> shed 0.3 percent despite a burst of corporate
activity that would usually lift investors' spirits. On a
year-to-date basis, the index was still up 4.1 percent.
While investors fret over a global slowdown, economists in
the latest Reuters poll predicted that world growth of 4.2
percent this year and 4.3 percent in 2012, unchanged since the
January poll. See []
European stocks <> fell 0.5 percent on the day, while
Wall Street stocks were <.SPX> down 0.3 percent.
In Tokyo, the Nikkei <> bucked the trend, closing up
0.1 percent after Wednesday's late gains in the U.S.
Selling in European stocks emerged on a report that Chinese
inflation would re-accelerate after slowing recently. Investors
are particularly concerned about Chinese inflation in case the
government attempts to restrain it by raising interest rates
prompts a 'hard landing' for the economy.
"In emerging markets especially China, they rely on high
levels of oil imports. They import a lot of oil products into
the manufacturing sector," said Chris Ferrarone, global equity
strategist with UBS in Stamford, Connecticut.
Hong Kong's Phoenix TV, citing an unnamed source, said
China's annual rate of inflation in March was likely to be 5.3
percent to 5.4 percent, a 32-month high and just above an
estimate in a Reuters poll. []
PERIPHERAL WORRIES
Stock losses grew as Greek bond yields soared, with
short-dated paper coming under the most intense pressure, as
markets priced in a greater probability that Athens would be
forced to restructure its runaway debt.
Yields of other peripheral euro zone states also rose
sharply. []
A year ago, the deterioration of Europe's sovereign debt
problem held back the global recovery and forced the European
Central Bank to leave policy rates steady for longer.
Adding to jitters over the bailout cost in Europe was the
toll on Japan from last month's deadly quake and tsunamis.
The Reuters Tankan survey of 400 large firms found on
Thursday that power shortages caused by the crippled Fukushima
nuclear plant had hit nearly 60 percent of local companies,
disrupting production and supply chains. []
In the U.S., the surprise rise in jobless claims raised
doubts over the recovery in the labor market. For more, see
[]
Renewed anxiety over the U.S. economy hurt the dollar,
which fell against the yen at 83.26 yen <JPY=>. The ICE U.S.
dollar index <.DXY> was down 0.2 percent, trimming earlier
losses linked to the weaker-than-expected claims data. []
The weaker dollar supported oil value, despite worries over
less demand if the world economy slows.
U.S. oil prices <CLc1> were up 59 cents at $107.69 a
barrel. But in London, Brent crude <LCOK1> was stuck in the
red, down 43 cents at $122.45. For more, see []
Gold prices <XAU=> jumped to $1,467.77 an ounce, up from
$1,454.61 late on Wednesday.
In bond trading, U.S. Treasury priced turned lower, as
traders prepared room for $13 billion of 30-year bonds. The
benchmark 10-year yield <US10YT=RR> firmed 3.48 percent after
touching its lowest level in about 1-1/2 weeks earlier. For
more, see []
German Bund futures <FGBLc1> were up 0.2 percent at 120.69,
the highest in more than a week. For more, see []
(Additional reporting by Ryan Vlastelica and Gertrude
Chavez-Dreyfuss in New York; Jeremy Gaunt, Jan Harvey, Nia
Williams in London)
