* Wall Street set for small gains after Goldman results
* China growth worries emerging markets
* European shares rise
* Euro hits six-month low against dollar
By Jeremy Gaunt, European Investment Correspondent
LONDON, Jan 21 (Reuters) - Goldman Sach's earnings helped
lift developed market stocks and set Wall Street up for modest
gains on Thursday while worries about more tightening in China
hit emerging market shares.
The euro fell to a six-month low against the dollar as
concerns about Greek debt pushed bond spreads out to record
levels before recovering.
Goldman Sachs <GS.N> announced fourth quarter earnings of
$22.13 a share compared with market expectations of results of
$5.20 a share. []
"Goldman Sachs continues to print money. Revenue was in line
with expectations, but earnings were a blow-out," said Walter
Todd, a portfolio manager with Greewood Capital Associates.
The pan European FTSEurofirst 300 <> was up 0.4
percent, driven by banks and what analysts said was a belief
that the market had sold off too much on Wednesday when it fell
1.5 percent.
Earlier, Japan's Nikkei <> closed up 1.2 percent,
partly on export prospects from a weaker yen.
Emerging market stocks were weaker, however, with MSCI's
sector index <.MSCIEF> off around three-quarters of a percent.
China's annual gross domestic product rose 10.7 percent in
the fourth quarter, while third quarter growth was revised up to
9.1 percent. Growth for the year was 8.7 percent, surpassing
Beijing's 8.0 percent target.
Consumer inflation rose to 1.9 percent in December on the
year from 0.6 percent the previous month.
This left many analysts expecting more policy tightening
from China and its impact on global recovery. []
"Since major economies in the world are still struggling
over the timing of their exit strategies, speculation about
China tightening would raise worries about the impact on the
world economy short term," said Jun Kato, senior chief analyst
at Shinkin Central Bank Research Institute.
EURO SLIDES
The euro hit a 6-month low against the dollar and was off a
quarter of a percent at $1.4064 <EUR=>.
Analysts said the euro remained vulnerable on fiscal
concerns of euro zone peripheral economies, particularly
debt-laden Greece.
The spread between Greek and German 10-year bond yields hit
311 basis points, its widest since Greece joined the euro in
2001. It bounced back later with analysts saying it had gone too
far.
"Momentum is now on the side of the euro bears and it is
difficult to see this ending anytime soon," said Stuart Bennett,
currency strategist at Calyon.
(Additional reporting by Tamawa Desai and Kaori Kaneko, editing
by Mike Peacock)
