GLOBAL MARKETS-China data weighs on world stocks, copper
* Copper declines after data from China, the biggest user* Global stocks slip after six days of gainsBy Rodrigo CamposNEW YORK, Oct 13 (Reuters) - Global stocks and copper prices fell from recent highs on Thursday after weak data from China reinforced concerns about the global economy, while the euro dipped on lagging worries over the European debt crisis.The European Central Bank warned about the effect of bondholder write-downs, and investor unease on the effectiveness of current measures to prevent the spread of the euro zone debt crisis could be seen in the rise in yields on Italian bonds.Major stock markets had recently jumped sharply on hopes the debt crisis was close to being resolved.Prices of U.S. Treasury debt rose as investors sought relative safety.On Wall Street, shares of JPMorgan Chase slumped 5.5 percent to $31.39 after the bank reported a drop in quarterly earnings. It was the first major U.S. bank to post results this season.U.S. shares fell from three-week highs after China reported its trade surplus narrowed for a second straight month in September. Both imports and exports were lower than expected.The data reflected global economic weakness, which along with the euro zone debt crisis, drove equities and commodities to post heavy losses in the third quarter.An index of U.S. bank shares slid 4.3 percent.”JPMorgan is a good indicator of what is happening in the banking industry and a little bit of an insight into where consumer banking is headed.” said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.In afternoon trading in New York, the Dow Jones industrial average dropped 51.50 points, or 0.45 percent, to 11,467.35. The S&P 500 dropped 6.80 points, or 0.56 percent, to 1,200.45. The Nasdaq Composite gained 4.05 points, or 0.16 percent, to 2,608.78.A spike in shares of chipmakers kept the tech-heavy Nasdaq higher.The S&P 500 has run up more than 10 percent from a 2011 low hit on Oct. 4 and had notched its largest seven-day rally since March 2009 on growing optimism European leaders were making progress in tackling the region’s debt problems.World stocks as measured by MSCI were down 0.5 percent after six days of gains.The soft data from China also pressured copper prices . The industrial metal, often taken as a proxy for economic growth expectations, fell 2.5 percent. China is the world’s largest copper consumer, accounting for nearly 40 percent of global demand.The euro pared losses but was still trading lower against the U.S. dollar, pulling back from a one-month high, after the ECB warned about the impact on the currency and the region’s banks of involving bondholders in euro zone bailouts.Slovakia’s parliament backed a plan to bolster the euro zone’s rescue fund after political parties agreed to hold an early election, concluding the ratification process in all euro zone countries.But even with a revamped rescue fund, European banks are still vulnerable to a Greek default and to sovereign downgrades. That increases the urgency for them to raise more capital to remain financially sound, analysts said.”After such a strong rally this week based on nothing but hope, people realize that things are not going to come as easily as they had hoped,” said Kathy Lien, director of currency research at GFT in New York.The single currency hit a New York session low of $1.3683, according to Reuters data. It last traded at $1.3762, down 0.2 percent on the day. The euro on Wednesday touched its highest versus the greenback since Sept. 16.Italy sold 6.2 billion euros of debt, split across four bonds. But yields remained under pressure, and the European Central Bank stepped into the secondary market after the auction, buying Italian debt to cap rising yields.The Italian 10-year BTP yield was up to 5.829 percent from 5.738 percent late on Wednesday.The benchmark 10-year U.S. Treasury note was up 13/32 point, with the yield at 2.1656 percent.Thirty-year bonds gained as much as two points after a $30 billion auction that saw yields fall below market forecasts. They last traded up 1-10/32 in price to yield 3.1328 percent.