PORTUGAL

Sales of newly built U.S. homes fell for a fourth straight month to a record low in February, but another rise in new orders for durable goods offered assurance that the economic recovery was on course.

U.S. stocks slipped on Wednesday after Portugal's credit rating was cut on deficit concerns, prompting a sell-off after the recent rally.

Fitch Ratings cut Portugal's sovereign credit rating by one notch to AA- on Wednesday, citing budgetary underperformance in 2009 and warning that a similar outcome this year and next could cause another downgrade.

Stocks fell on Wednesday after Portugal's credit rating was downgraded on budget concerns, prompting investors to pull back after recent gains.

* COMEX April GCJ0 down $12.20 at $1,091.50 an ounce at 9:48 a.m. EDT (1348 GMT). * Ranged $1,106 to $1,087.80 - lowest since Feb. 12. * Gold pressured as dollar jumped over 1 percent against the euro and a basket of currencies .DXY. [USD/] * Weak euro, losses in equities markets drag gold lower - Peter Buchanan, senior economist at CIBC World Markets. * U.S. currency extends gains after data showed new orders for durable goods rose for third straight month in February.

Wall Street was poised to open lower on Wednesday after Portugal was downgraded one notch on budget concerns, amplifying jitters about the sovereign debt troubles of some European countries.

U.S. stock index futures fell on Wednesday after Portugal's sovereign credit rating was downgraded one notch on budget concerns.

Stock index futures pointed to a lower open on Wall Street on Wednesday, with futures for the S&P 500 down 0.6 percent, Dow Jones futures down 0.3 percent and Nasdaq 100 futures down 0.4 percent.

* Merkel says no need for EU summit to discuss Greek aid * Greek PM says EU needs mechanism to deter speculators * Juncker sees possible twin-track euro zone/IMF support * Trichet says any help would have to be conditional loan * Euro falls, Greek risk premium leaps amid uncertainty

The head of the European Commission challenged German Chancellor Angela Merkel to rise above domestic politics and agree on a financial safety net for debt-stricken Greece to help preserve European monetary union.

Most investors confuse money and currency, but they are not the same thing. Money is defined as a medium of exchange, a unit of account and a store of value.

Greece's prime minister warned on Thursday that Athens would not be able to make planned deficit cuts unless it can borrow money more cheaply and said he would prefer not to have to turn to the IMF for help.

A Lehman Brothers bankruptcy examiner's report will help securities regulators in their investigation of large financial firms involved in the Wall Street meltdown, a top regulator said on Wednesday.

Euro zone finance ministers on Monday will look at how to give Greece financial aid should it ask for help, but there were signs France and Germany were holding out on making concrete commitments.

Finance ministers from countries using the euro hope to agree on Monday on a way of providing heavily indebted Greece with financial aid, despite French and German doubts that a deal will be reached.

Euro zone finance ministers are likely to agree on Monday on a mechanism for aiding Greece financially, if it is required, but will leave out any sums until Athens asks for them, an EU source said on Saturday.

If Greece's debt crisis is giving the European Union a headache, it is minor compared to the pain it will suffer if a large member state such as Spain sinks into similar trouble.

Last month's huge earthquake in Chile might cost the insurance industry up to $7 billion in damage claims, the world's top two reinsurers said, but it looks unlikely to raise reinsurance prices.

Concerns over Europe's fiscal problems hit the euro and sterling on Wednesday, while world stocks hovered near their recent six-week highs, though they were still up 66 percent from a low hit one year ago.

Asian stocks hovered near six-week highs on Wednesday as Chinese data showed exports and imports in February were better than expected, while the euro and the pound suffered on renewed concerns about Europe's fiscal problems.

British bank Barclays Plc is looking to buy a retail bank in the United States to extend its presence after buying Lehman Brothers North American operations in 2008, the Wall Street Journal reported on Tuesday, citing people close to the matter.