* Investors look to government, central banks for help
* Fed's Bernanke pledges more aid but mum on details
* Markets await Obama's jobs plan, doubts over feasibility
* ECB rates unchanged, Trichet sees downside growth risks (Updates market action, adds 9/11 exchange remembrances)
By Richard Leong
NEW YORK, Sept 8 (Reuters) - Wall Street stocks fell on Thursday on disappointment that a speech by the Federal Reserve chief lacked details on plans to spur economic growth, while the euro slipped on fears the euro zone debt crisis is worsening with Greece failing to meet fiscal targets.
Safe havens were still in favor with investors, with gold prices rising after a two-day fall and German and U.S. government bond yields edging closer to their historic lows.
Fed Chairman Ben Bernanke said the U.S. central bank "will do all it can" to boost economic growth and reduce unemployment, but he did not disclose what monetary tools the Fed might use. For more, see [ID:nW1E7IR02M]
"The markets are going to be disappointed in this and concerned that the Fed is only acknowledging the problems without offering any real solutions," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington.
Traders have shifted their focus to U.S. President Barack Obama's televised speech to Congress at 7 p.m. (2300 GMT), in which he is expected to propose tax cuts for middle-class households and businesses and new spending to repair roads, bridges and other infrastructure. [nN1E786157]
"Everyone's waiting for the President to give a real, good, solid speech tonight. He's got to deliver something strong and positive," said Michael Cullen, head bond trader at Wall Street Access in New York.
Later this week, G7 finance ministers and central bankers will convene in Marseilles, France, with markets expecting them to pledge support to help a struggling global economy. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Graphic-interest rate outlook: http://link.reuters.com/pej23s Graphic - U.S. jobless claims: http://r.reuters.com/dym63s U.S. exports and the dollar: http://r.reuters.com/xan63s ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
An earlier U.S. government report showing an increase in weekly jobless claims and remarks by European Central Bank President Jean-Claude Trichet about downside risks to the euro zone's economy fueled fears that both the United States and Europe are at risk of slipping into recession.
Those worries briefly pushed equities markets in negative territory before some buying emerged before Bernanke's speech.
With about an hour of trading left in the session, the Dow Jones industrial average <.DJI> was down 108.60 points, or 0.95 percent, at 11,306.26. The Standard & Poor's 500 Index <.SPX> was down 12.65 points, or 1.06 percent, at 1,185.97. The Nasdaq Composite Index <.IXIC> was down 20.29 points, or 0.80 percent,
The renewed fall on Wall Street knocked MSCI's world stock index <.MIWD00000PUS> down 0.5 percent on the day. The MSCI index has recovered a tad from its August correction -- the worst monthly loss since 2008 -- but is still 16 percent below the 2011 highs hit in May.
Earlier, Tokyo's Nikkei <.N225> finished up 0.3 percent, while the FTSEurofirst 300 index <.FTEU3> of top European shares ended up 0.9 percent after erasing earlier gains on the ECB's decision to leave key rates steady.
In the wake of Trichet's cautious economic outlook and the
chances of no more rate hikes in the foreseeable future, the
euro fell to a two-month low against the dollar. It touched a
session low of $1.3875 on the EBS trading platform
In the bond market, benchmark 10-year German Bund yields
Spot gold prices
Financial markets plan to observe the 10th anniversary of the Sept. 11th terror attacks on Friday. NYSE Euronext will host events at its New York and European exchanges, while the CME Group will hold four voluntary moments of silence. (Additional reporting by Ed Krudy, Emily Flitter, Wangfeng Zhou and Barani Krishnan; Editing by Dan Grebler)