* U.S. still in spotlight over Fed's rate policy
* Emerging stocks hit two year low
* Brent at fresh six-month low
(Updates prices, changes comment, byline, dateline)
By Rodrigo Campos
NEW YORK Aug 6 (Reuters) - Weak earnings dragged stocks
lower on Thursday and oil fell on continued oversupply concerns,
while Treasuries prices rose ahead of U.S. jobs numbers seen as
key to determine the timing of a rate hike from the Federal
Reserve.
Sterling fell sharply against the U.S. dollar after just one
Bank of England official voted for higher interest rates at a
meeting in which the bank said a strong pound and low oil prices
would keep inflation subdued. ID:nL5N10H3YA
Wall Street traded lower, weighed by a second day of sharp
declines in media companies after Viacom's VIAB.O earnings
miss was linked to viewers increasingly shifting to online
streaming. ID:nL3N10H44A
At 11:33 a.m. EDT (1533 GMT) the Dow Jones industrial
average .DJI fell 112.61 points, or 0.64 percent, to
17,427.86, the S&P 500 .SPX lost 16.41 points, or 0.78
percent, to 2,083.43 and the Nasdaq Composite .IXIC dropped
78.97 points, or 1.54 percent, to 5,060.98.
London's FTSE 100 .FTSE equity index fell 0.1 percent,
outperforming a 0.8 percent drop for the pan-European
FTSEurofirst 300 index .FTEU3 . Weak corporate results hit the
shares of enzyme company Novozymes NZYMb.CO and Deutsche Post
DPWGn.DE .
A gauge of stocks across the globe .MIWD00000PUS fell 0.6
percent. Emerging market stocks .MSCIEF slipped to their
lowest in over two years on nervousness about the timing and
scope of a U.S. interest rate hike and continued weakness in
commodity markets.
"People will go back to the U.S., put money into the U.S.
coming out of emerging markets. Weakness there is specifically
linked to the Fed," said Michael Testorf, co-fund manager at R
Squared Capital Management in New York.
Market participants were looking ahead to U.S. jobs data on
Friday that could give a strong pointer to when the Fed will
raise rates for the first time in nearly a decade. The Fed next
meets in mid-September.
U.S. Treasuries prices rose on caution ahead of the key U.S.
jobs report, while reduced inflation fears also supported
long-dated Treasuries prices.
U.S. 30-year Treasuries prices US30YT=RR were last up
29/32 in price to yield 2.898 percent compared with a yield of
2.943 percent late Wednesday. Benchmark 10-year notes US10YT=RR
were last up 11/32 in price to yield 2.230 percent, compared
with a yield of 2.268 percent late Wednesday.
Sterling fell 0.6 percent to $1.5504 GBP= , having traded
as high as $1.5636.
The euro EUR= was little changed versus the greenback at
$1.0907 with the dollar index .DXY on track for a second
straight week of gains, lifted by a batch of economic data that,
overall, has reinforced expectations that the Fed will raise
interest rates next month.
"Assuming the Fed is raising interest rates, differentials
will be in favor of the U.S.," said Testorf.
Brent futures LCOc1 , the global oil benchmark, fell more
than 1 percent to hit a low of $48.88 per barrel, its lowest
since late January. U.S. crude CLc1 set a day low of $44.20,
not far from the six year low of $42.05 hit in March.
"Prices are likely to consolidate or weaken further,"
Carsten Fritsch, an oil analyst at Commerzbank (XETRA:CBKG), said. "The
perception is that over-supply will be there for much longer."
London copper CMCU3 was flat after gaining as much as 0.8
percent, still near a six year low hit earlier this week.
Spot gold XAU= struggled to pull away from a 5-1/2-year
low as it stood near $1,090 an ounce.