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GLOBAL MARKETS-Dollar falls further after tepid US GDP data

Published 04/28/2011, 08:51 AM
Updated 04/28/2011, 08:56 AM
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LONDON, April 28 (Reuters) - The dollar and U.S. stock futures extended losses while Treasuries climbed on Thursday after U.S. GDP growth came in at an annualised 1.8 percent in the first quarter, a little below forecasts.

The euro rose above $1.4807 versus the dollar, up 0.2 percent after the data, from $1.4789 just before.

S&P 500 futures fell 3.9 points and Dow Jones industrial average futures fell 21 points, pointing to a weak start on Wall Street.

Growth had been forecast to slow to a 2 percent annualised rate in the world's largest economy, from 3.1 in the last three months of 2010. Separately, U.S. jobless claims were reported to have jumped last week.

Benchmark 10-year Treasury notes, up 7/32 before the reports were released, rose to a 12/32 gain afterwards, their yields easing to 3.32 percent from 3.36 on Wednesday.

Earlier, the dollar slid to three-year lows against a basket of other major currencies after the Federal Reserve signalled it was in no rush to tighten monetary policy.

U.S. and Brent crude futures turned positive and gold stretched its gains to trade above $1,531 an ounce in response to the GDP data, while German government bond futures hit session highs. (Writing by Mike Peacock; editing by Patrick Graham)

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