Global stocks, dollar fall on economy concerns

By Natsuko Waki LONDON (Reuters) - World stocks hit a one-week low on Friday while the dollar fell as dismal U.S. housing and jobs data and warnings from German reinsurers fanned concerns about the health of the financial sector and the broader economy. Insurers came under pressure after Germany's Munich Re issued a profit warning, while Hannover Re said it would be difficult to reach full-year targets if capital markets don't calm down. The news, along with Thursday's data highlighting weakness in the U.S. housing and labor markets, spooked investors who had bet earlier this week that the one-year-old credit crunch was not damaging corporates and the economy so much. "With the real economy still in deep trouble and house prices falling, financial losses will continue to mount. We are not out of the woods, even though there... [read full story]