* European shares fall 1 pct, dollar at seven-week lows vs
euro
* Crude slips after data point to high U.S. inventories
* Gold heads for 16 pct quarterly gain
* Government bonds end quarter strong
By Marc Jones
LONDON, March 31 (Reuters) - World stocks fell for the first
time in four days on Thursday as a roller-coaster quarter drew
to a close after hammering the dollar and the pound but boosting
gold and bonds.
European markets opened with shares FTEU3 down 1 percent,
the dollar hovering near a seven-week low versus the euro EUR=
and oil LCOc1 almost back where it started after a wild
V-shaped ride.
Analysts were cautious to draw too many conclusions, but
there was a sense the underlying currents of the past few months
were still running strong.
Oil slipped to $39 a barrel on record U.S. stockpiles, China
was put on a downgrade warning by S&P and new data showed euro
zone inflation remains non-existent despite the
European Central Bank's redoubling its stimulus efforts.
That's a large part of reason German government bonds are
set for their best quarter since the height of the euro zone
crisis in late 2011.
Bund yields DE10YT=TWEB were down another couple of ticks
in early trading on Thursday. They have shed nearly 50 basis
points since the start of the year, within touching distance of
zero again.
This quarter "has all been about the three C's. Commodities,
China and central banks," said Aberdeen Asset Management
investment committee member Kevin Daly.
The currency market saw a resumptions of this week's latest
sell-off in the dollar, after cautious comments on Tuesday from
the head of the Federal Reserve about the global outlook.
The dollar index .DXY dropped for a fourth day as the euro
inched up to $1.1325 EUR= , putting the index on track for its
biggest monthly decline since April 2015 and largest quarterly
drop in five years.
"Obviously, Tuesday was very interesting from Janet Yellen
and it had the desired effect." said Charles Schwab (NYSE:SCHW) managing
director Kully Samra.
Sterling was steady in early deals, but it has suffered as
concern grows that Britain will leave the European Union - its
quarterly drop was the biggest in more than six years against
the euro EURGBP=R and on a trade-weighted basis. March has
been its best month in almost a year against the dollar, though
GBP=D4 .
The greenback's recent weakness has also been a boon to the
Australian and New Zealand dollars, both of which soared to
nine-month highs.
GOLD SHINES BRIGHTEST
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS closed up 0.4 percent overnight, at its highest
since early December. It eked out a gain of 1 percent this
quarter, which saw equities rocked earlier by global growth
worries, and particularly for the Chinese economy.
Japan's Nikkei .N225 dropped 0.7 percent and saw an 11
percent loss for the quarter as the yen climbed against the
dollar.
Shanghai shares .SSEC have been an even bigger loser,
dropping about 15 percent since the start of the year,
notwithstanding a gradual rebound since mid-January.
The big winner of 2016 so far has been safe-haven gold
XAU= . It ticked up to $1,232 an ounce in early European
trading and has jumped 16 percent this quarter, its best run in
nearly 30 years. GOL/
"It is difficult to get bearish on gold at this stage given
that the Fed has made it quite clear that it is reluctant to
raise rates," said INTL FCStone analyst Edward Meir.
"As a result, the dollar is not rallying on constructive
macro releases, and we have to suspect that its weaker tone will
limit any substantial declines in gold for the time being."