* Investors trim growth outlook on Greek debt concerns
* Chinese inflation, weak Japanese and US data also weigh
* Wall Street closes flat, pares losses on late buying
* Economists see global expansion on track - Reuters poll
* Gold, bonds attract safe-haven flows; US oil up on
dollar
(Update market prices, adds fresh quotes)
By Richard Leong
NEW YORK, April 14 (Reuters) - Stocks on major world
markets 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 sought safe-haven from stocks and riskier 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.
U.S. oil prices climbed on the weaker dollar.
World stocks, as measured by the MSCI world index
<.MIWD00000PUS>, dipped 0.1 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.
European stocks <> ended down 0.6 percent.
Wall Street stocks ended little changed, erasing earlier
losses on late buying in energy and consumer staples.
Analysts said the choppy session underscored the current
divide among investors, which could keep stock markets in tight
trading ranges in the coming weeks.
"The 'risk-on' and 'risk-off' trades are battling right
now," said Perry Piazza, director of investment strategies at
Contango Capital Advisors in San Francisco
.
The S&P 500 index closed up 0.1 percent at 1,314.52, while
the Dow finished up 0.1 percent at 12,285.15. The Nasdaq closed
flat at 2,760.22. For more, see []
In Tokyo, the Nikkei <> closed up 0.1 percent after
Wednesday's late U.S. gains.
The initial weakness in U.S. and European stocks came after
a report that said Chinese inflation would reaccelerate after
slowing recently. Hong Kong's Phoenix TV, citing an unnamed
source, said China's annual inflation rate 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. []
Investors are concerned about Chinese inflation in case the
government attempts to restrain it by raising interest rates,
prompting a 'hard landing' for the economy.
Huge figures on China's foreign exchange reserves and money
supply growth also fanned worries over how aggressively Beijing
will confront inflation. []
While investors fret over a global slowdown and rising
inflation, economists in the latest Reuters poll predicted
world growth of 4.2 percent this year and 4.3 percent in 2012,
unchanged since the January poll. See []
Investors, despite their reservations about the global
economy, snapped up shares of Zipcar Inc. <ZIP.O> in its debut
on Nasdaq. Shares of the U.S. car-sharing company rose more 50
percent to $27.83. For more, see []
PERIPHERAL WORRIES
Stock losses grew as Greek bond yields soared, with markets
pricing in a greater probability that Athens would be forced to
restructure its runaway debt. Yields of other peripheral euro
zone states also rose sharply. []
Some analysts say stronger members of the euro zone could
fight off the drag from weaker ones.
"Europe is probably on the mend without saying the pain in
the peripherals is over," said Sam Wardwell, investment
strategist at Pioneer Investments in Boston.
A year ago, the deterioration of Europe's sovereign debt
problem held back the global recovery and forced the European
Central Bank to leave rates steady longer than expected.
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 United States, a surprise rise in jobless claims
raised doubts over the recovery in the labor market.
[]
Renewed anxiety over the U.S. economy hurt the dollar, and
traders bet the Federal Reserve will stick to its ultra-easy
policy even as the ECB and other major central banks raise
rates to curb rising price pressures.
The ICE U.S. dollar index <.DXY> was down 0.4 percent and
touched a 16-month low. []
The weaker dollar supported oil, despite worries over less
demand if the world economy slows.
U.S. oil prices <CLc1> jumped $1.26, above $108 a barrel.
But in London, May Brent crude <LCOK1> expired down 52 cents at
$122.39. For more, see []
Gold prices <XAU=> gained 1.2 percent on the day to
$1,472.67 an ounce.
U.S. Treasury prices fell in a choppy session, despite
strong demand at a $13 billion auction of 30-year bonds. The
benchmark 10-year yield <US10YT=RR> last traded at 3.50 percent
after touching its lowest level in about 1-1/2 weeks. []
German Bund futures <FGBLc1> were up 0.1 percent at 120.61
after rising to their highest level in more than a week.
[]
(Additional reporting by Ryan Vlastelica, Gertrude
Chavez-Dreyfuss, Gene Ramos, Robert Gibbons and Frank Tang;
Editing by Dan Grebler)
