GLOBAL MARKETS-Euro dips on weak German data; shares up modestly
* Wall St recovers modestly from steep decline
* Euro edges lower after German data
* HSBC China manufacturing PMI hits 3-month high
NEW YORK, Oct 24 (Reuters) - The euro slipped against the dollar and yen on Wednesday on signs of further decline in the economy of regional powerhouse Germany, but global shares rebounded slightly after Tuesday's hefty fall.
Data showed China's manufacturing sector shrank for the 12th consecutive month, though signs that the slowdown was easing provided temporary relief to a slumping market.
Boeing Co reported stronger-than-expected earnings and raised its full-year 2012 outlook, supporting the Dow.
But the S&P 500, which rose slightly on Wednesday, had dropped more than 3 percent over the last four sessions as weak earnings outlooks and top-line revenue misses by large multinational companies raised concerns about a slowing economy.
``At the end of the day - we've been through this for three years - the short-term bumps that (Federal Reserve chief Ben) Bernanke is providing is just a sugar high, and fundamentals matter,'' said Seth Setrakian, partner and co-head of U.S. equities at First New York Securities in New York.
``He's probably prevented it from being worse but stocks are based on valuation, based on their earnings and projected future business and the economy is slowing and prices are reflecting that.''
The euro fell against the dollar and yen on unexpectedly weak German data. The euro fell to a session low of $1.2918, the lowest in a week, before paring losses to last trade at $1.2974, down 0.1 percent on the day.
Activity in Germany's manufacturing and service sectors declined for a sixth straight month in October as order books thinned, indicating Europe's largest economy had clearly stagnated in the second half of 2012.
Traders were shifting their attention to an announcement from the Federal Reserve later in the day. Most expect it to be a non-event following the central bank's aggressive easing action in September.
The Dow Jones industrial average was up 36.52 points, or 0.28 percent, at 13,139.05. The Standard & Poor's 500 Index was up 2.02 points, or 0.14 percent, at 1,415.13. The Nasdaq Composite Index was down 0.39 points, or 0.01 percent, at 2,990.08.
European shares advanced, bouncing back after a steep sell-off in the previous session. The FTSEurofirst 300 was up 0.4 percent at 1,092.55, having sunk 1.7 percent on Tuesday. An index of world stocks gained 0.1 percent to 1,301.43.
Brent crude for December delivery was little changed at $108.24 a barrel. U.S. December crude was down 30 cents at $86.35 a barrel.
The benchmark 10-year U.S. Treasury note was down 8/32 in price, the yield at 1.7871 percent.
EARNINGS STILL KEY
Shares of Boeing rose 1.3 percent to $73.80 after the company posted stronger-than-expected results for the third quarter and raised its forecast for the full year as its defense business improved and commercial aircraft deliveries surged.
That optimistic outlook bucked a recent trend by companies with a large global footprint - including DuPont, United Technologies Corp and 3M Co - of lowering their full-year forecasts.
Facebook Inc surged 22.2 percent to $23.82 after the social networking company grew mobile advertising revenue several times in the third quarter, a much quicker pace than expected.
According to Thomson Reuters data through Tuesday, of the 161 companies in the S&P 500 that have posted earnings, 60 percent have beat analysts' estimates. Earnings are expected to decline 2.2 percent compared with the same quarter a year ago.
A total of 43 S&P 500 companies are due to report earnings on Wednesday, including Citrix Systems Inc, F5 Networks Inc and Symantec Corp after the close.
Financial information firm Markit said its U.S. ``flash,'' or preliminary, Purchasing Managers Index for the manufacturing sector edged up to 51.3 this month from 51.1 in September, but slow growth and economic uncertainty suggested the sector's recent struggles may persist over the final months of 2012.
Data on the housing market showed new U.S. single-family home sales surged in September to their highest level in nearly 2-1/2 years, further evidence the housing market recovery is gaining steam, while house prices rose 0.7 percent on a seasonally adjusted basis from July to August.
The Federal Open Market Committee will conclude the second day of a two-day meeting later on Wednesday. Analysts and primary dealers expect the FOMC to leave fed funds rate in the current 0.0 percent to 0.25 percent range.