GLOBAL MARKETS-World stocks falter on weak data, gold gains

* Wall Street slips on economic, corporate outlook jitters

* Oil rises above $49 a barrel on weaker dollar support

* Government debt trim losses after Fed details purchases

* Euro rises against dollar after risk aversion eases (Recasts, updates U.S. markets; changes dateline, previous LONDON)

By Herbert Lash

NEW YORK, April 23 (Reuters) - U.S. and European stocks faltered on Thursday as new U.S. housing and labor data punctured hopes the U.S. economy is improving, driving gold to a three-week high over $900 an ounce on its safe-haven appeal.

Oil rose above $49 a barrel but pared some gains as a weak dollar outweighed concerns about falling global demand and rising inventories in the United States, the world's top energy consumer.

The euro touched a one-week high versus the dollar as risk aversion for the European currency eased on brighter signs for regional economies. The euro zone's services and manufacturing sectors posted their best performance in six months in April. For details, see [ID:nLN405659]

Pockets of recovery could bee seen in European banks after Credit Suisse posted first-quarter results that doubled expectations and Britain's Barclays Plc said it intends to resume dividend payments. [ID:nLM494747]

Several large U.S. regional banks also posted better-than-expected quarterly results, providing a glimmer of hope for a sector that has been battered by higher loan losses in a recessionary economy.

But the number of laid off American workers filing claims for jobless benefits rose last week and sales of previously owned homes fell in March, data showed, indicating the 16-month-old U.S. recession was far from over. [ID:nN23390443]

The number of people claiming benefits after drawing an initial week of aid vaulted in early April to the 14th consecutive week of record highs, the Labor Department said.

"The data is a bit disappointing for the market," said BNP Paribas analyst Michael Widmer. "There is still uncertainty. People are asking themselves at what stage the economy will bottom out."

At 1 p.m., the Dow Jones industrial average <.DJI> was down 15.45 points, or 0.20 percent, at 7,871.12. The Standard & Poor's 500 Index <.SPX> was off 1.24 points, or 0.15 percent, at 842.31. The Nasdaq Composite Index <.IXIC> was down 5.90 points, or 0.36 percent, at 1,640.22.

Investors found some relief as a few companies, including Apple Inc , posted stronger-than-expected results and the regional U.S. banking results cushioned stock declines.

But worries over what the U.S. government's "stress tests" on 19 major U.S. banks will reveal kept uncertainty high. The government is set to unveil the results on May 4.

The pan-European FTSEurofirst 300 <.FTEU3> index of top shares fell 0.4 percent at 791.95 points.

The euro rose 0.58 percent at $1.3072 after touching a one-week high of $1.3086, according to Reuters data.

Sterling also recovered against the dollar after a sharp sell-off on Wednesday following the announcement of the British budget, which showed a rapid deterioration in public finances.

"The euro is seeing a bit of a respite," said Andy Busch, chief foreign exchange strategist at BMO Capital in Chicago.

The dollar fell against a basket of major currencies, with the U.S. Dollar Index <.DXY> off 0.61 percent at 85.768.

Against the yen, the dollar fell 0.12 percent at 97.85.

Oil gained slightly on the dollar's weakness. A falling dollar can boost the appeal of oil and commodities to investors as an inflation hedge.

"Traders are looking more at exogenous factors, such as equities, dollar direction and China as a precursor of what might be on the horizon," said Nauman Barakat, senior vice president, global energy futures at Macquarie Futures USA.

"The underlying fundamentals, while important, are not the key drivers for market direction."

U.S. crude was up 41 cents at $49.26 a barrel, after dropping as much as 48 cents in early Asian trade. London Brent crude was up 15 cents to $49.96.

U.S. and euro zone government bonds fell in price.

U.S. debt pared losses after the Federal Reserve announced details of its latest purchases of Treasuries while concerns about mounting debt supply to fund various government stimulus packages hurt European demand for fixed income assets.

The benchmark 10-year U.S. Treasury note fell 2/32 in price to yield 2.95 percent. The 2-year U.S. Treasury note was breakeven in price to yield 0.96 percent.

Spot gold prices rose $17.25 to $906.40 an ounce.

Stocks staged a comeback across most of Asia as a larger-than-expected profit from Korea's Hyundai fed optimism that the auto sector could be nearing a turnaround.

Japan's Nikkei <.N225> added nearly 1.4 percent, while MSCI's index <.MIAPJ0000PUS> of Asia Pacific shares excluding Japan gained 1.3 percent. (Reporting by Leah Schnurr, Vivianne Rodrigues and Burton Frierson in New York; Joanne Frearson, Emelia Sithole-Matarise, Christopher Johnson, Alex Lawler, Rebekah Curtis and Jan Harvey in London; writing by Herbert Lash)