Global stocks retreat on growth worries

Cyclical sectors led US stocks lower on Thursday, setting the S&P 500 up for its first negative week in six, after factory data showed a slowdown in both the euro zone and China.

The weak data is hardly a surprise for markets, as many analysts have already factored in a recession in the euro zone and early this month, China trimmed its 2012 growth target to an eight-year low of 7.5 percent.

The Dow Jones industrial average fell 78.48 points, or 0.60 percent, to 13,046.14 at the close. The S&P 500 Index dropped 10.11 points, or 0.72 percent, to 1,392.78. The Nasdaq Composite lost 12.00 points, or 0.39 percent, to 3,063.32.

European shares notched up their longest losing streak in four months, piercing a support level which led chartists to say there were further losses to come, while mining stocks led the fallers after weak data from China and the euro zone.

The pan-European FTSEurofirst 300 index of top shares closed down 1.1 percent at 1,079.49 points and broke a support level at 1,091 which represents its February high.

The Nikkei share average advanced, shrugging off data showing China's manufacturing activity shrank for a fifth straight month in March, with market participants seeing Japanese equities as a buy.

The Nikkei closed up 0.4 percent at 10,127.08 after snapping a five-session winning streak on Wednesday.