* World stock index turns negative after JPMorgan result
* JPM reports Q4 net income $3.3 bln; retail banking weighs
* Dlr rise pushes euro down almost 1 pct; Bunds rise
* More US data awaited
(Updates throughout)
By Sujata Rao
LONDON, Jan 15 (Reuters) - Investors sold shares and stepped
up bids for safe-haven bonds and the U.S. dollar, despite a big
earnings jump from JPMorgan
The results -- fourth-quarter 2009 net income of $3.3 billion -- come on the heels of tepid U.S. data and a lacklustre earnings season so far which have kept alive worries about the global and especially U.S. growth.
The New-York based bank reported a quarterly profit of 74 cents a share, a huge rise on the year earlier quarter but $25.2 billion revenue number was below expectations. JPMorgan shares were down 2 percent.
Equity gains earlier in the session were capped despite
upbeat earnings from chipmaker Intel Corp
European stock markets <.FTEU3> which had opened firmer on back of the Intel results, reversed gains to trade down 0.2 percent with banks bearing the brunt of the selling.
Analysts said buoyant headline numbers were overshadowed to some extent by loan losses and high bad-debt provisions.
"JPMorgan top-line results were disappointing... there were pressures on credit card lending and retail banking and it just shows the U.S. economy is far from out of the woods yet," said David Buik, partner at BGC Partners in London.
Reflecting these worries, U.S. stock futures
Wall Street closed only marginally up on Thursday as weak U.S. retail sales data and a rise in jobless claims outweighed the Intel results [ID:nN13151343] [ID:nN14168822].
DOLLAR, YEN, BONDS GAIN
The dollar extended gains pushing the euro to the day's lows while Bund futures rose after the JPMorgan announcement.
The euro, already under pressure from worries over the struggling Greek economy and the growing public debt burden in some euro zone economies, slid almost one percent to $1.4367, compared with around $1.4390 before the results.
Against a currency basket, the greenback was up over half a
percent <.DXY>.
Bund futures rose 10 ticks to 122.35 while the 10-year Bund
yield
More corporate earnings are due next week but investors now await U.S. CPI and manufacturing data due at 1330 GMT and 1415 GMT respectively.
Geoff Lewis, head of investment services at JP Morgan Asset Management in Hong Kong, said corporate earnings alone will not lift markets for long.
"You still have to see continued good news on the economic front to validate improvements in corporate earnings forecasts," said. "Markets will want to see evidence of strength in private sector demand ... it's important the economy stand on its feet after the public fiscal stimulus starts to fade." (Editing by Andy Bruce)