* S&P 500 down about 1 pct
* Copper hits lowest since July 2009
* Report shows unexpected fall in U.S. new home sales
(Updates to late U.S. afternoon trading, adds U.S. oil
settlement)
By Caroline Valetkevitch
NEW YORK, July 24 (Reuters) - Global equity markets dropped
and copper fell to a six-year low on Friday as
weaker-than-expected data from China and the euro zone
exacerbated concerns over global economic growth.
Oil prices also fell, extending recent declines.
Energy and materials shares weighed on the S&P 500, which
dropped about 1 percent and was at its lowest level in two
weeks. Biotech shares also were a drag following a disappointing
forecast from Biogen BIIB.O . The S&P 500 was on track for its
worst weekly decline since March.
Copper slumped to its lowest level in six years, with
three-month copper on the LME CMCU3 hitting $5,191.50 a tonne,
its cheapest since July 2009, before paring losses.
A survey showed Chinese manufacturing contracted by the most
in 15 months in July as orders shrank. Worries over demand
increased in the world's biggest metals consumer as stockpiles
mounted.
The flash Caixin/Markit China Manufacturing Purchasing
Managers' Index (PMI) showed activity contracted for a fifth
straight month, and faster than economists polled by Reuters had
estimated. ID:nL3N1032YR
Euro zone business activity also started the second half of
the year on less secure footing than expected, hit by Greece's
near-bankruptcy. Markit's flash euro zone PMI fell to 53.7 in
July from June's four-year high of 54.2. A Reuters poll had
predicted a more modest dip to 54.0.
MSCI's all-country equities world index .MIWD00000PUS was
down 1 percent, while European shares .FTEU3 closed down 0.9
percent.
The Dow Jones industrial average .DJI fell 163.92 points,
or 0.92 percent, to 17,568, the S&P 500 .SPX lost 23.42
points, or 1.11 percent, to 2,078.73 and the Nasdaq Composite
.IXIC dropped 57.87 points, or 1.12 percent, to 5,088.54.
Adding to the bearish tone for Wall Street, Democratic
presidential candidate Hillary Clinton is expected to propose
nearly doubling the U.S. capital gains tax rate on short-term
investments, according to a Wall Street Journal report.
Amazon.com AMZN.O shares jumped as much as 20.4 percent to
a record high of $580.57, a day after the online retailer posted
an unexpected quarterly profit.
Among other gainers, British telecom firm Vodafone VOD.L
rose after results showed improvements across major markets in
Germany and Britain. ID:nL5N1040T6
In the energy market, U.S. crude for September delivery
CLc1 fell 31 cents to settle at $48.14. A rise in the number
of U.S. oil drilling rigs added pressure.
"Crude was already lower on concerns about the global
economy and the rig count added to the negativity," said Phil
Flynn, analyst at Price Futures Group in Chicago.
U.S. Treasury debt prices drifted higher as investors sought
safety in government bonds after a softer-than-expected U.S.
housing report. U.S. 30-year bonds US30YT=RR were up 6/32 in
price to yield 2.972 percent.
U.S. DOLLAR EDGES UP, AUSSIE DOWN
The U.S. dollar edged up against most other major currencies
on the data that pointed to sluggish overseas economic growth,
while the Australian dollar sagged to a six-year low.
In late U.S. trading, the dollar index .DXY was up 0.2
percent at 97.274, trimming its weekly decline to 0.6 percent.
The Aussie dollar, often used as a liquid proxy for China
trades, fell more than 1 percent to $0.7280 AUD=D4 , a six-year
low. The recent decline in a wide range of commodities,
including oil, has weighed on currencies like the Canadian and
Australian dollars.
Gold turned higher after sliding more than 1 percent to its
lowest since early 2010. Spot gold XAU= hit its lowest since
February 2010 at $1,077.00 an ounce but was last up 0.5 percent
at $1,096.29.