* U.S., European stocks little changed
* World stocks upbeat after last week's US jobs data rally
* Euro sheds gains after Greece's prime minister comments
* U.S. bonds softer ahead of auction
(Updates with midday prices, quotes)
By Manuela Badawy
NEW YORK, March 8 (Reuters) - The euro surrendered gains on
Monday as worries about Greece resurfaced and oil slipped as
the dollar rose, while U.S. and European equities were little
changed after last week's rally.
U.S. Treasuries fell as investors prepared to absorb $74
billion in debt scheduled to be auctioned this week and after
Friday's better-than-expected jobs report buoyed hopes for an
economic recovery and curbed a safe-haven bid.
The euro surrendered earlier gains after Greek Prime
Minister George Papandreou said that Athens was not asking
Europe to rush to the "aid of a reckless country" by helping
Greece deal with its budget problems. And he warned the crisis
could cause a domino effect, driving up borrowing costs for
other countries with large deficits. [ID:nWEN1396]
The euro had risen earlier after French President Nicolas
Sarkozy hinted at plans to support debt-stricken Greece.
"It's Greek jitters," said BNY Mellon currency senior
strategist Michael Woolfolk. "The Greek prime minister is
probably behind the move."
U.S. stocks were little changed after last week's rally
that saw the Nasdaq close at an 18-month high after data
showing U.S. employers cut fewer jobs than expected.
Hopes stirred by AIG's <AIG.N> sale of a unit and
McDonald's <MCD.N> upbeat sales were offset by falling
health-care shares after President Barack Obama's criticism.
U.S. stocks were flat with the Dow Jones industrial average
<.DJI> at 10,556.90. The Standard & Poor's 500 Index <.SPX>
was unchanged at 1,138.37, while the Nasdaq Composite Index
<.IXIC> was up 0.19 percent at 2,330.66.
European shares closed slightly lower as pharmaceutical
stocks were hit, offsetting gains in oil majors on strong crude
prices during the European session.
The FTSEurofirst 300 <.FTEU3> index of top European shares
closed 0.1 percent lower at 1,053.15 points. The index hit a
six-week high on Friday and is up 63 percent since hitting a
record low last March.
World stocks, however, were at their highest in six weeks
on Monday on improved confidence in the U.S. economy.
MSCI's all-country world stock index <.MIWD00000PUS> was up
0.39 percent supported by global recovery optimism.
In midday New York trade, the euro <EUR=> was little
changed at $1.3621. The dollar index <.DXY>, a non-traded
calculation of the dollar's performance against a basket of
currencies, was flat at 80.458.
Against the yen, the euro was also little changed at 123.00
yen <EURJPY=>, after having hit a two-week high earlier on
Monday.
Papandreou on Monday also urged the Group of 20 leading
developed and emerging economies to take the lead in efforts to
rein in market speculators, warning that failing to do so could
trigger another global financial crisis.[ID:nWEQ003830]
German Chancellor Angela Merkel also commented on Greece's
indebtedness and backed the idea of a European Monetary Fund
and left open the possibility of helping Greece in future,
while emphasising it was not in an emergency now.
[ID:nLDE62720V]
On Sunday French President Nicolas Sarkozy promised that
euro zone countries would help Greece if its financial problems
worsened and vowed a crackdown on market speculators.
[ID:nPAB008209]
Crude oil <CLc1> prices shed gains later on Monday to trade
0.3 percent lower to $81.26 a barrel and copper <HGH0> reverted
course to trade 0.4 percent lower at $338.75 due to lack of
liquidity and with fund money exaggerating price moves.
In the U.S. government debt market benchmark 10-year notes
<US10YT=RR> traded 6/32 lower in price to yield 3.70 percent,
up from a close of 3.69 on Friday.
Japan's Nikkei <.N225> gained more than 2 percent to close
at a 6-week high.
(Additional reporting by Ryan Vlastelica and Nick Olivari in
New York; Editing by Leslie Adler)