RTRS:GLOBAL MARKETS-Euro, stocks dip on spreading euro zone fears
* U.S. stocks lower along with world stocks
* Euro dips versus dollar
* Concerns focused on turmoil in Greece, Spanish banks NEW YORK, May 17 (Reuters) - The euro slipped along with world stocks on Thursday as deepening turmoil in Greece and Spain kept investors wary of riskier assets, with weak U.S. economic data adding to the cautious mood.
Worries about the health of Spain's banks also resurfaced after a report that customers at Bankia had withdrawn more than 1 billion euros from their accounts in the past week, though the Spanish government said there had been no exit of deposits from the lender.
The report followed suggestions that customers of Greek banks were moving funds in anticipation of its exit from the euro, adding to anxiety among investors about the lack of a firm plan to deal with the region's worsening crisis.
"The whole equities market is being driven by a macro trade based upon contagion fear in Europe, and really the problem is undercapitalized banks there," said Jack de Gan, chief investment officer at Harbor Advisory Corp in Portsmouth, New Hampshire.
Adding to euro zone jitters was ongoing political turmoil in Athens, where politicians rejecting harsh austerity measures are likely to win June 17 elections.
The euro was last at $1.2694, down 0.2 percent, and near a four-month low of $1.2681 hit on Wednesday.
The single currency has already shed 3.9 percent in May, coming close to its 2012 trough of $1.2624 reached in mid-January.
Global shares, as measured by MSCI's world equity index , slipped 0.3 percent, while U.S. stocks edged lower.
The Dow Jones industrial average was down 23.08 points, or 0.18 percent, at 12,575.47. The Standard & Poor's 500 Index was down 2.24 points, or 0.17 percent, at 1,322.56. The Nasdaq Composite Index was down 8.70 points, or 0.30 percent, at 2,865.34.
The pan-European FTSE 300 index was down 0.9 percent.
U.S. government bond prices rose. The benchmark 10-year U.S. Treasury note was last up 3/32, with the yield at 1.7466 percent.
Among U.S. economic news, the Philadelphia Fed said its index of business conditions in the U.S. Mid-Atlantic region fell in May to -5.8 from 8.5 in April.
Brent crude however slipped to a near four-month low under $110, edging down 56 cents to $109.19 a barrel. (Reporting by Richard Hubbard in London and Caroline Valetkevitch in New York; additional reporting by Rodrigo Campos in New York, editing by Dave Zimmerman)
