Global stocks and euro hit by German data, U.S. results

NEW YORK (Reuters) - Some disappointing U.S. earnings, including those of Amazon.com, and weak German economic data pressured world stock markets on Friday, while the euro clung to an eight-month low against the U.S. dollar.

Amazon.com was the biggest drag on the S&P 500. Its shares sank 10.2 percent to $322.12, a day after the online retail giant reported an unexpectedly big loss for the second quarter. Visa also reported results that disappointed, and its shares were down 4.9 percent at $211.90.

"The earnings season overall has been in line, but when companies with rich valuations disappoint, you're going to get crucified," said Lawrence Glazer, managing partner at Mayflower Advisors in Boston. "Amazon and Visa are significant components of the overall market and bellwethers of their respective industries. That gives you pause."

Signs emerged that tensions between the West and Russia are starting to hurt confidence in Germany, Europe's largest economy and the driver of its recovery. Germany's Ifo survey showed a hefty fall in business confidence over the last few weeks, prompting concerns that Germany could be stuttering.

It was the third consecutive fall in the index, which monitors the mood of thousands of German firms.

MSCI's All-World Index was down 0.4 percent, and European stocks ended 0.7 percent lower.

The Dow Jones industrial average fell 130.59 points or 0.76 percent, to 16,953.21. The S&P 500 was down 9.14 points, or 0.46 percent, to 1,978.84, after three straight days of intraday record highs, while the Nasdaq Composite dropped 23.24 points, or 0.52 percent, to 4,448.87

The euro hit an eight-month low against the dollar of $1.3427 after data showed that U.S. durable goods orders rose more than expected in June. The rise in durable goods came a day after U.S. jobless data that suggested the labor market recovery was gaining traction.

"U.S. data has been good or better than expected, whereas European data continues to point to a slowdown," said Boris Schlossberg, managing director in FX strategy at BK Asset Management in New York.

The euro also fell on ongoing tensions between Russia and Ukraine. European officials are to continue talks over plans to squeeze Russia with further sanctions following the downing of a Malaysia Airlines plane that killed almost 300 people.

Dollar-traded Russian stocks fell 1.6 percent to bring losses over two weeks to roughly 12 percent. Russian bonds also fell as the country's central bank unexpectedly raised interest rates.

U.S. Treasuries prices jumped, as fixed-income traders focused on soft spots in the U.S. durable goods report. Ten-year Treasuries were up 11/32 in price to yield 2.46 percent.

Gold edged up as the tensions between Russia and the West over Ukraine prompted speculators to buy back their bearish bets ahead of the weekend. Gold was on track to fall 1 percent for the week.

U.S. crude rose 2 cents to settle at $102.09 a barrel, while Brent was up $1.27 at $108.34.

(Additional reporting by Ryan Vlastelica and Sam Forgione in New York, Marc Jones in London, Lisa Twaronite in Tokyo; Editing by Nick Zieminski and Leslie Adler)

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