(Reuters) - A grim economic outlook from the U.S. Federal Reserve and signs of slowing growth in China and Germany drove world stocks down more than 4 percent on Thursday, prodding investors into the safe-haven U.S. dollar and government bonds. The U.S. dollar climbed to a seven-month high against a basket of major currencies as investors dumped riskier trades in favor of the world's most liquid currency.

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(Reuters) - Americans filed fewer new claims for jobless benefits last week, but the decline was not enough to dispel worries the economy was dangerously close to falling into a new recession. Applications for unemployment benefits dropped to 423,000 in the week ending September17 from an upwardly revised 432,000 the prior week, the Labor Department said on Thursday.

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(Reuters) - Seven world leaders on Thursday demanded Europe act more decisively to quell its debt crisis as a European Central Bank study warned that the entire euro currency project was now in peril. As top finance officials gathered in Washington for meetings of the Group of 20 and International Monetary Fund, an open letter to G20 president France from the leaders of Australia, Canada, Indonesia, Britain, Mexico, South Africa and South Korea stressed the threat of the euro zone crisis spreading worldwide.

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(Reuters) - FedEx Corp (FDX.N), the world's No. 2 package delivery company, reported a higher quarterly profit that slightly beat forecasts but pared its outlook for the full year, citing fuel prices and moderate global economic growth. Analysts had expected the company to lower its earnings guidance based on a tepid domestic economy and slower international trade than many expected.

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(Reuters) - Stocks were little changed on Wednesday as cautious investors awaited the Federal Reserve's statement on monetary policy that is expected to include measures to support the economy. Technology stocks were top gainers early in the session, boosted by Oracle Corp (ORCL.O), which jumped 6.4 percent to $30.15. The software maker forecast higher-than-expected current-quarter earnings as well as robust sales.

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(Reuters) - Existing home sales rose more than expected in August to the fastest annual pace since March as falling prices and low interest rates drew more buyers into the market, the National Association of Realtors said. Sales climbed 7.7 percent month over month to an annual rate of 5.03 million units, the NAR said on Wednesday. The median price was 5.1 percent lower than a year earlier.

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(Reuters) - Greece was set to outline more austerity measures on Wednesday to secure a bailout installment crucial to avoid running out of money next month, as the IMF warned that Europe's sovereign debt crisis risks tearing a giant hole in banks' capital. The cabinet in Athens was meeting to consider major public sector layoffs, pay and pension cuts and tax increases sought by international lenders in return for an 8 billion euro rescue loan vital to pay state salaries and bills in October.

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(Reuters) - The Federal Reserve on Wednesday looks set to launch a fresh effort to invigorate the faltering economic recovery, embarking on what could be the first in a series of incremental steps to foster stronger growth. The central bank appears likely to try to push long-term borrowing costs lower by rebalancing its $2.8 trillion portfolio of bond holdings to weight it more heavily to longer-term securities.

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(Reuters) - UBS chief executive Oswald Gruebel said he had the support of the Swiss bank's board ahead of its first meeting since announcing rogue trading had cost it $2.3 billion, news that promoted calls for tougher regulation of investment banks. Arriving in Singapore for meetings with UBS's management and board, Gruebel said: "Yes. Always." when asked by Reuters on Wednesday if he had the board's backing.

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(Reuters) - Stocks rebounded after a wobbly start on Tuesday on cautious optimism that the U.S. Federal Reserve's policy panel would add more monetary stimulus to a flagging economic recovery, At the two-day meeting that started Tuesday, the Fed is expected to try to push already-low long-term interest rates even lower by tilting toward longer-duration bonds in its portfolio, a move known as Operation Twist.

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