GLOBAL MARKETS-Euro slides on weak German data; shares flat
* 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 fell on Wednesday on signs that the euro zone is heading for a deeper recession than previously feared, but global shares were little changed after Tuesday's steep fall.
U.S. stocks were up slightly, though the S&P 500 has declined 3 percent over the last four sessions as weak earnings outlooks and top-line revenue misses by large multinational companies have raised concerns about a slowing economy.
Data showed China's manufacturing sector shrank for the 12th consecutive month in October, 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, helping the Dow index stay in positive territory.
Investors remain concerned about weak revenue growth so far this earnings season, said Kate Warne, investment strategist at Edward Jones in St Louis.
``Certainly today we've seen some companies with better earnings, but overall, the trend remains one where investors are cautious,'' she said.
The euro fell against the dollar and yen on unexpectedly weak German data. But losses in the euro were limited after Greece's finance minister said Athens had been given additional time by international lenders to impose its austerity cuts, an assertion played down by leading EU officials.
The euro fell to a session low of $1.2918, the lowest in a week, before paring losses to last trade at $1.2946, down 0.3 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 has clearly stagnated in the second half of 2012.
Traders were shifting their attention to an announcement from the Federal Reserve's latest policy meeting 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 28.51 points, or 0.22 percent, at 13,131.04. The Standard & Poor's 500 Index was up 2.45 points, or 0.17 percent, at 1,415.56. The Nasdaq Composite Index was up 3.01 points, or 0.10 percent, at 2,993.48.
European shares halted a three-day slide on Wednesday. The FTSEurofirst 300 index provisionally closed 0.6 percent higher at 1,095.16, after having sunk 1.7 percent on Tuesday. An index of world stocks was flat at 1,299.73.
Brent crude oil fell for a seventh consecutive session after U.S. crude stocks rose last week, offsetting earlier strength prompted by signs that Chinese demand could stage a recovery.
Brent crude for December delivery was down 42 cents at $107.83 a barrel and looked on track for its lowest close since early August. U.S. December crude was down $1 at $86.35 a barrel.
The benchmark 10-year U.S. Treasury note was down 7/32 in price, the yield at 1.7836 percent.
EARNINGS STILL KEY
Shares of Boeing rose 0.6 percent to $73.23 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 21 percent to $23.56 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.