NEW YORK (Reuters) - Global stocks slipped and the euro hit another five-month high on Thursday as improving data curbed expectations the Federal Reserve would increase money supply to spur economic growth and lift asset prices.

The euro was on track for its best quarterly gain in eight years as data showed euro zone banks had relied far less on European Central Bank funding than analysts expected.

The euro was up 0.12 percent at $1.3644, but the rally seemed to be running out of steam, analysts said.

U.S. stocks ended lower for a second day as investors took profits from an exceptionally strong September that left the benchmark S&P 500 up 8.8 percent for the month.

The session was volatile, with investors torn between end-of-quarter positioning and stronger-than-expected economic data.

New U.S. claims for jobless benefits fell last week, a sign of an improving labor market, while Midwest business activity grew more than expected in September. Also, U.S. second-quarter growth was revised a touch higher on firmer consumer spending.

U.S. stocks temporarily rose, but the S&P 500 has been unable to close above 1,150.

“If (future) data and earnings confirm that we are finally out of fears of a double-dip (recession), October may be the month for the S&P to break above trading range and reach the highs that we saw in April,” said John Canally, an economist and investment strategist at LPL Financial in Boston.

A poll by Reuters showed leading investors around the world increased equity holdings to their highest level in three months in September and reduced bonds and cash holdings as confidence about the global economy grew.

It was the best month for the S&P 500 and Nasdaq since April 2009, and for the Dow since July 2009.

The Dow Jones industrial average .DJI closed down 47.23 points, or 0.44 percent, at 10,788.05. The Standard & Poor's 500 Index .SPX fell 3.53 points, or 0.31 percent, at 1,141.20. The Nasdaq Composite Index .IXIC shed 7.94 points, or 0.33 percent, at 2,368.62.

The December futures contract that trades in Chicago for the Nikkei 225 was flat at 9,450.

Oil rose to a seven-week high of nearly $80 a barrel on the U.S. data, while gold eased but not before hitting yet another record high as investors sought an alternative to a weak dollar and future protection against potential inflation risks.

U.S. oil futures settled up $2.11 at $79.97 a barrel. Oil posted an 11.2 percent gain in September, the largest monthly jump since May 2009.

European benchmark Brent crude futures rose $1.59 to $82.36 a barrel in late trade.

Gold hit its 11th record high in 13 trading sessions and posted a 5 percent gain for the month. Spot gold scaled a record of $1,315.80 an ounce and then eased to $1,306.75

U.S. Treasuries ended modestly lower in choppy trading. The day’s decline ended a mediocre third quarter for U.S. government debt.

Benchmark 10-year notes were down 3/32 in price to yield 2.51 percent.

The dollar index fell to an eight-month low, under pressure from investors shunning the U.S. currency, but later gained strength.

The dollar was higher against a basket of major currencies, with the U.S. Dollar Index .DXY almost break-even at 78.713.

Against the Japanese yen, the dollar was down 0.24 percent at 83.48.

The Australian dollar climbed to a two-year high against the U.S. dollar as investors bet that the Reserve Bank of Australia will raise the benchmark interest rate next week.

Asian stocks outside Japan fell 0.3 percent but were set for their best quarter in a year as investors poured money into regional markets on robust Chinese-driven growth.

The MSCI index of Asia Pacific stocks outside Japan .MIAPJ0000PUS has gained more than 17 percent this quarter.

Japan's Nikkei .N225 ended 2 percent lower but still posted its best monthly performance in six. On a quarterly basis the Nikkei is flat, sharply lagging other major markets.