* World shares dip for 4th straight session
* The euro hovers near two-month low at $1.2710
* German bonds steady ahead of Euro zone finance ministers
* Euro ministers seen unlikely to decide on Greece bailout
By Richard Hubbard
LONDON, Nov 12 (Reuters) - World shares edged down for a
fourth day on Monday as concerns about a potential U.S. fiscal
crisis and Greece's bailout dented optimism over global growth.
Adding to the uncertainty, Japan reported that its economy
shrank 0.9 percent in July-September from the previous quarter,
pointing to a mild recession in the world's third-largest
"Investors remain consumed by U.S. fiscal cliff
consequences, and this is capping market enthusiasm," said Tim
Waterer, senior trader at CMC Markets.
Since the U.S. elections, the investors have worried that
the return of the status quo in Washington will make it
difficult for lawmakers to reach the compromises needed to avoid
a "fiscal cliff" at the end of the year when nearly $600 billion
worth of spending cuts and tax increases kick in.
The MSCI world equity index, which was down
0.1 percent at 322.80 points on Monday, has lost about 2 percent
since President Barack Obama's re-election and the Republican
Party retained its majority in the House of Representatives.
European shares were little changed.
Export data out of China suggesting that seven straight
quarters of slowing growth may have ended provided some support
however, the positive data was offset by weak bank loan figures.
The FTSEurofirst 300 index of top European shares
was steady at 1,096.85 points, having dropped 1.6 percent last
week. London's FTSE 100, Paris's CAC-40 and
Frankfurt's DAX traded between 0.2 percent up and 0.1
U.S. stock index futures pointed to a similarly mixed open
on Wall Street, with futures for the S&P 500 up 0.15
percent, Dow Jones futures up 0.03 percent and Nasdaq 100
futures down 0.1 percent.
A green light for the Greek government's 2013 budget from
the parliament in Athens on Sunday had little impact on the euro
, which hovered at $1.2705 to the dollar and is not far
from the two-month low of $1.2690 hit on Friday.
The budget vote, and another on an austerity package last
week were conditions for unlocking the next tranche of aid from
Greece's international bailout.
Markets are looking ahead to a euro zone finance ministers'
meeting later in the day for signs the money will be released.
The pressure for a deal on Greece is growing because Athens
has to redeem 5 billion euros ($6.35 billion)worth of treasury
bills this week and had been counting on cash from the next aid
tranche to help cover that.
Germany's Finance Minister Wolfgang Schaeuble said at the
weekend that the troika of international lenders had not yet
finished its report on the bailout programme.
"I think we've seen too many finance ministers' meetings
over the course of the last two or three years to have any great
expectations," Peter Dixon, global equities economist at
The uncertainty over the Greek aid talks and the U.S. fiscal
worries supported German government bonds, with German 10-year
yields steady at 1.34 percent.
European credit markets were also fairly flat with the
iTraxx main index, made up of 125 investment-grade bonds, 0.5
basis points wider at 132 basis points.
U.S. bond markets were closed on Monday for the Veteran's
Day public holiday.
Commodities were mixed, with Brent oil trading around $109
per barrel and U.S. crude sliding under $86 a barrel,
while gold edged up to $1,734 an ounce, near a three-week
high of $1,738.
$1 = 0.7868 euros)