LONDON (Reuters) – World share and commodity prices fell on Monday as a recent run of downbeat corporate earnings casts a shadow over the outlook for growth and markets braced for the impact of a major U.S. hurricane.

All U.S. stock markets were shut in the first weather-related closure for 27 years and they may close again on Tuesday as the nearly 1,000-mile-wide (1,600-km-wide) storm crosses the mid-Atlantic coastline later in the day.

U.S. stock index futures, which traded as usual, were down around 0.6 to 0.8 percent in line with falls seen across major European markets. NDc1> .N

The broader MSCI world equity index .MIWD00000PUS lost 0.25 percent to be at 327.70 points – on track for its worst monthly performance since May as doubts grow over the effect of recent central bank efforts to boost activity.

Positive surprises, including third-quarter U.S. and British growth data and signs of stability in China, have been unable to convince investors that the world economy is on a sustainable growth path in the face of weak revenue outlooks from major global companies.

“Risk aversion is rising in all markets, and investors are increasingly focusing on slow global economic growth,” said Eugen Weinberg, head of commodities research at Germany’s Commerzbank in Frankfurt.

The FTSE Eurofirst 300 index .FTEU3 of top European shares fell 0.5 percent to 1,092.35 points and the euro zone’s blue-chip Euro STOXX 50 index .STOXX50E was down 0.7 percent to 2,478.13 points.

EURO ZONE

In Europe, the problems facing the heavily indebted nations of Spain, Greece and Italy have also added to investor concerns, undermining the euro and peripheral bond markets.

Spain’s economic woes appear to be deepening, with retail sales in September falling at their fastest pace in at least six years as already battered consumer confidence took another hit from a hike in sales tax.

In Greece, uncertainty is growing over whether it can agree measures to unlock further funds from its international bailout package before cash runs out in mid-November [ID:nL5E8LS26I]

“Greece has come back to the radar and along with Spain, it poses a slight negative for the euro,” said Jeremy Stretch, head of currency strategy at CIBC World Markets.

In Italy, political risk was on the rise again after former premier Silvio Berlusconi threatened to bring down the government of Mario Monti.

“Berlusconi’s rant perhaps highlights the less than stable nature of Italian politics and reinjects some degree of political risk into (Italian government bonds),” said Richard McGuire, rate strategist at Rabobank.

The single currency was down 0.3 percent at $1.2894, close to Friday’s two-week low of $1.28825, with volumes expected to taper off as traders in New York stay at home.

Italian 10-year bond yields were up 7.5 basis points at 4.99 percent, underperforming even their Spanish counterparts where yields were 3.5 basis points higher at 5.65 percent.

German government bonds also hit two-week highs, sending 10-year cash yields down 5 basis points to 1.49 percent, as the weakness on equity markets added to the demand for less risky assets. <GVD/EUR>

“We’ve got very reduced liquidity, with the U.S. deemed to be shut for the rest of the day so people are biding their time,” one fixed income trader noted.

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Euro zone crisis: r.reuters.com/hyb65p

Asset performance: link.reuters.com/muc46s

Risk on or risk off?: link.reuters.com/bar72t

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DOLLAR FIRM

Meanwhile, the dollar steadied at 79.63 yen, off a four-month high of 80.38 yen touched on Friday, ahead of the Bank of Japan’s policy decision on Tuesday. Markets expect the BOJ to take further easing measures.

If the BOJ does ease, it will be the first time the central bank has acted for two consecutive months since 2003.

In oil markets, all eyes were on Hurricane Sandy, which has forced the closure of several big refineries along the east coast of the United States.

“With refineries cutting runs, we’re likely to see a build-up in crude stocks which could be driving bearish prices at the moment,” said Michael Creed, an economist at National Australia Bank in Melbourne.

Brent crude oil fell $1.04 to $108.51 a barrel on the possible impact of the hurricane, before recovering to around $109.15. U.S. crude was down 70 cents at $85.56.

Oil analysts say Sandy is likely to depress U.S. oil consumption as commuting and road transport fall and flights to and from East Coast airports are cancelled.

Commodities were also pressured by speculation that rising evidence of weak corporate earnings around the world meant demand would slow. London copper fell 1.5 percent to $7,705 a metric tonne.

(Additional reporting by Anirban Nag and Kirsten Donovan; Editing by Will Waterman and Alastair Macdonald)