Global stocks off as Greece, Portugal drive fears

Global stocks slid on Monday as a spike in Portuguese bond yields and the still-unresolved Greek debt talks raised investors' fears that the already-fragile European and global economies face greater risks.

US Stocks edged lower on stalled Greek debt talks, but an afternoon rally cut losses in a sign of the underlying resilience the market has shown early in the year.

The Dow Jones industrial average slipped 12.03 points, or 0.10 percent, to 12,648.43. The Standard & Poor's 500 Index fell 3.29 points, or 0.25 percent, to 1,313.04. The Nasdaq Composite Index lost 2.08 points, or 0.07 percent, to 2,814.47.

European shares hit a two-week closing low in thin trade as talks about a Greek debt swap deal stumbled on with no firm conclusion and US consumer spending data lagged forecasts, dragging down cyclical stocks across the board.

The FTSEurofirst 300 index of top European shares ended down 1 percent at 1,030.43 points, the lowest close since mid-January, after a six-month high last week. Volumes were 77 percent of its 90-day daily average.

The benchmark Nikkei fell 0.5 percent to 8,793.05 in its third straight session of losses after hitting a three-month high last week. Some market participants said last week's rally was spurred by month-end window dressing by domestic institutional investors.

The benchmark is up 4 percent this month, heading for its best January performance since 1999. The broader Topix slipped 0.5 percent to 757.01, while reports over the weekend pointed to a debt swap deal between Greece and its private creditors this week, a crucial precursor for sealing a new bailout for the debt-ridden country.