* Home Depot, retailers curb losses
* Euro slips on concerns about Greece, Spain
* Brent oil slips on worries about global demand
By Ellen Freilich
NEW YORK, Nov 13 World stocks fell on Tuesday,
extending losses as U.S. stocks reversed gains on worries that
the United States could fall back into recession due to looming
spending cuts and tax rises if Congress does not act, and the
euro weakened as Greece faced delays in winning more aid.
The euro hit a more than two-month low against the dollar
and a one-month trough versus the yen on concern about the
delays in aid for debt-burdened Greece and on uncertainty about
whether Spain will seek a bailout.
Worries about Greece and Spain have caused the euro to lose
value against the safe-haven dollar in seven of the last nine
trading sessions. So far in November, the euro has fallen 1.9
percent against the dollar and 1.7 percent against the yen.
In late trading, the euro was slightly lower at
$1.2704, after earlier trading as low as $1.2660, its lowest
level since Sept. 7.
Greece's international lenders gave the country more time to
fix its budget, though they did not disburse the aid Greece had
hoped to use to refinance 5 billion euros of its debt by Friday.
A public clash between Greece's international lenders over
how Athens can bring its debts down to a sustainable level has
fueled fears that Europe's troubles could flare up anew.
"When those overseeing resolution to the euro zone crisis
continue to disagree, it becomes very difficult to instill
confidence in investors," said Sean Cotton, foreign exchange
adviser at Bank of the West in San Ramon, California.
On Wall Street, equities sold off late in the session, led
by a slide in Microsoft, although retailers were a notable
bright spot after Home Depot, the world's largest home
improvement chain, raised its outlook.
"Stocks opened with a boost of upside energy, but when there
was no follow-through by late morning, players just took some
chips off the table to wait for tomorrow's retail sales figures
and any developments in the fiscal cliff negotiations," said
John Canavan, market analyst at Stone & McCarthy Research
Associates in Princeton, New Jersey.
The market is grappling with how a divided U.S. Congress
will deal with the series of mandated tax hikes and spending
cuts that start to take effect next year and could take the
world's largest economy back into recession. However, serious
negotiations are still weeks away, analysts said.
The Dow Jones industrial average was down 58.90
points, or 0.46 percent, at 12,756.18. The Standard & Poor's 500
Index was down 5.50 points, or 0.40 percent, at 1,374.53.
The Nasdaq Composite Index was down 20.37 points, or
0.70 percent, at 2,883.89.
The MSCI world equity index slipped 0.84
percent to 321.96.
The release of October U.S. retail sales on Wednesday is
expected to offer key insights into how consumer spending is
shaping up for the fourth quarter, said Deutsche Bank Securities
chief U.S. economist Joseph LaVorgna.
Dow component Home Depot Inc raised its full-year
outlook and cited an improving housing market as it reported
quarterly results. Its stock rose 3.6 percent to finish at
Microsoft shares fell 3.2 percent to $27.09 after
the surprising departure of a key executive, who analysts said
was the driving force behind the company's biggest product.
The risk aversion gripping investors boosted U.S.
Treasuries, with the benchmark 10-year Treasury note up 6/32,
and its yield easing to 1.59 percent.
A weak German ZEW sentiment survey heightened concerns about
the impact of the euro zone crisis on Europe's largest economy
and knocked the euro earlier in the session.
The FTSEurofirst 300 pan-European index closed up
4.81 points, or 0.44 percent, at 1,099.16. Spain's IBEX index
rallied 1.7 percent, while its bond yields eased
slightly <ES10YT=RR, amid speculation Spain might be close to
asking for a sovereign bailout.
Brent crude oil slipped $0.89 to $108.18 a barrel,
falling for a second day on worries about demand growth in a
well-supplied market as the United States and Europe grapple
with fragile economies.
Platinum group metals rose sharply after a forecast that
production outages earlier this year could create a supply
deficit, while gold traded flat as investors awaited more
clarifications on Greek aid by the euro zone.
Spot gold eased 0.1 percent to $1,725.94 an ounce.
U.S. COMEX gold futures for December delivery settled
down $6.10 at $1,724.80 an ounce, preliminary Reuters data