World stocks fell on Friday, keeping safe-haven government debt well-bid after U.S. Federal Reserve Chairman Ben Bernanke gave no steer on new stimulus measures and as a $447 billion U.S. jobs package failed to lure investors back into equities, Reuters reported. The euro also fell to a two-month low after the region's festering debt crisis forced the European Central Bank to change course away from further rises in interest rates, a key driver in the single currency's rally this year. European stocks snapped a two-day recovery spurred by speculation that Bernanke would signal new stimulus plans to support the economy. His speech kept the door open for the Fed to do so but stopped short of signalling it would take the plunge. Equity markets were also concerned that President Barack Obama's proposed $447 billion package of tax cuts and spending plans aimed at boosting growth and job creation could be hamstrung by political wrangling when it goes to Congress. The MSCI world equity index fell 0.4 percent, with the pan-European share index slipping 0.1 percent in early trade. S&P futures were down 0.3 percent, indicating a lower open on Wall Street later in the session. Market confidence has been fragile this week due to growing concerns over the global economy and Europe's debt crisis, with a looming deadline for bond holders to decide on Greece's swap offer adding to the nervousness. G7 finance chiefs meet later on Friday, with the faltering global recovery and Europe's problems likely to be the issues of the day. The fragile tone in riskier assets kept safe-haven German government bonds well-bid, with Bund futures up 40 ticks at 136.85 and benchmark U.S. T-note yields hovering within striking distance of 1.908 percent , its lowest in 60 years hit on Tuesday. The euro was a touch down against the dollar on the day at $1.3876 and analysts saw more downside as sentiment stays negative after the ECB dropped its tightening bias and investors believe a lasting solution to euro zone debt crisis remains elusive. -- SPA
