* Global stocks slide as investors reassess Fed's big move
* Dollar extends gains vs euro, yen on US jobless claims
* Oil rebounds on lower-than-expected U.S. inventories
* Jobless data no boon to bonds; 30-year auction looms (Adds open of U.S. markets, changes byline, dateline; previous LONDON)
By Herbert Lash
NEW YORK, Nov 10 (Reuters) - The dollar hit a one-month high on Wednesday after data pointed to an improving U.S. labor sector while global stocks slipped as investors questioned the Federal Reserve's plans to reinvigorate the economy.
The dollar hit a one-month high against the euro and yen as higher U.S. bond yields prompted traders to reduce bets against the greenback. For details, see [ID:nN10213278].
Investors were struggling to understand the ramifications of the Fed's move announced last week to buy $600 billion in Treasury debt through next June.
The initial euphoria from expectations about the Fed's plans that lifted the benchmark Standard & Poor's 500 Index about 16 percent over the past two months has faded as concerns mount about the action, known as quantitative easing.
"The initial liquidity rush of the last three months has seemed to have reached its crescendo," said Chad Morganlander, portfolio manager at Stifel Nicolaus & Co in Florham Park, New Jersey. "Investor sentiment around the actions of the Fed have seem to have grown remorseful."
Some investors question whether the Fed might buy less than the original amount of bonds, while others were concerned the increased liquidity has propelled commodities higher, which could lead to harmful inflation.
The euro
The dollar was up against a basket of major currencies, with the U.S. Dollar Index <.DXY> up 0.79 percent at 78.057.
European shares fell from two-year highs hit a day earlier, with concerns about the euro zone debt problems resurfacing. Global stocks, as measured by MSCI's all-country world index <.MIWD00000PUS> slid 1 percent, although Wall Street stocks fell half that much.
At 10:40 a.m., the Dow Jones industrial average <.DJI> was down 53.93 points, or 0.48 percent, at 11,292.82. The Standard & Poor's 500 Index <.SPX> was down 5.13 points, or 0.42 percent, at 1,208.27. The Nasdaq Composite Index <.IXIC> was down 12.11 points, or 0.47 percent, at 2,550.87.
A decline in initial U.S. jobless claims had some analysts suggesting the American economy was starting to gain traction after months of sluggish growth. [ID:nN0986897]
Economic data last week showed surprisingly strong U.S. payroll growth in October and an improved services sector.
Gold earlier rose to hold around $1,400 an ounce, recovering from its choppiest trading session in six months the day before, as concerns about euro zone debt reignited safe-haven buying. [ID:nLDE6A90S9]
Spot gold prices
Silver pared Tuesday's 3 percent drop.
LONG BOND DOWN BEFORE SALE
In the bond market the 30-year U.S. Treasury bond
Oil climbed to around $87 per barrel as news of a big drop in U.S. crude oil inventories outweighed the impact of a stronger dollar and a fall in Chinese oil imports. [ID:nSGE6A906T]
U.S. crude futures for December
The American Petroleum Institute said late on Tuesday that U.S. crude stockpiles dropped last week, defying expectations. [API/S]
Japan's Nikkei average <.N225> closed up 1.4 percent, led by exporters, who were among the chief beneficiaries of the dollar's rise. The MSCI index of Asian shares outside of Japan <.MIAPJ0000PUS> fell 0.7 percent. (Reporting by Gertrude Chavez-Dreyfuss and Emily Flitter in New York; Christopher Johnson and Amanda Cooper in London; Writing by Herbert Lash; Editing by Kenneth Barry)