* A global sell-off pushes world stocks to 5-month low
* Expected ECB rate hike, US jobs data due on "Super
Thursday"
* Oil rises above $145, stokes inflation fears
By Natsuko Waki
LONDON, July 3 (Reuters) - A global sell-off knocked world
shares to a five-month low on Thursday as surging oil fanned
concerns about inflation and slowing growth, ahead of an
expected euro zone interest rate hike and a key U.S. jobs
report.
The gloom was all-pervasive, with Tokyo stocks setting their
longest losing streak in more than half a century while the
dollar hit a two-month low against the euro.
The European Central Bank is set to become the first G7
central bank to raise interest rates since the credit crisis
erupted in August. The decision is due at 1145 GMT. At 1230 GMT,
ECB President Jean-Claude Trichet gives a news conference and at
the same time U.S. non-farm payrolls data are due.
Tightening comes as the global economy struggles with the
chilling effects of an almost one-year-old financial turmoil.
"This has been a summer of thunder storms that have been
building up for some time," said Justin Urquhart Stewart,
investment director at Seven Investment Management.
"Only now are people beginning to realise quite how dark
this particular storm is looking, but it's been a long time
coming."
The FTSEurofirst 300 index <> was down 1.1 percent,
having hit a level not seen since July 2005. MSCI main world
equity index <.MIWD00000PUS> fell 0.6 percent to its lowest
since Jan. 23.
On Wall Street, the Dow has sunk into a bear market -- a
fall of 20 percent from peaks.
In the currency market, the euro benefited from the expected
ECB rate hike while the dollar fell as low as $1.5897 per euro
<EUR=>.
"The risks for the dollar are to the downside both in terms
of how hawkish the ECB is going to sound -- we don't think they
can afford to sound any less hawkish than they have been," said
Phyllis Papadavid, currency strategist at Societe Generale.
"And payrolls are not going to be the cause for any comfort
either."
A weaker dollar -- which policymakers increasingly worry is
inflationary -- pushed crude oil <CLc1> to fresh record highs
above $145 a barrel.
A senior Japanese government official said leaders from
Group of Eight rich nations will discuss concerns that a weak
U.S. dollar is a contributing factor to oil prices when they
gather next week in Japan.
Emerging sovereign spreads <11EMJ> widened 1 basis point
while emerging stocks <.MSCIEF> fell 1.4 percent.
The September Bund future <FGBLU8> fell 15 ticks. Safe-haven
government bonds, which usually benefit from risk-aversion, fell
because investors anticipated higher yields. A quarter-point
interest rate hike and hawkish comments from Sweden's central
bank also depressed European government bonds.
Gold <XAU=> rose to $944.55 an ounce, its highest in almost
2-1/2 months.
(Additional reporting by Rebekah Curtis and Veronica Brown,
editing by Mike Peacock)
