(Refiles to correct typo in 2nd paragraph)
* MSCI world equity index up 0.3 pct at 263.72
* European stocks, U.S. stock futures slip after broad rally
* Dollar hits 2009 lows; oil lower
By Natsuko Waki
LONDON, July 28 (Reuters) - European stocks slipped while
U.S. stock futures pointed to a weaker open on Wall Street on
Tuesday after strong optimism over corporate earnings sent world
stocks to fresh 9-month peaks.
BP's <BP.L> disappointing report of a halving in quarterly
profits and Deutsche Bank's <DBKGn.DE>'s significant rise in
loan provisions prompted investors to book profits after world
stocks posted gains in 10 out of the past 11 sessions.
"We are seeing a bit of profit taking, which is not too
surprising after the run we have had in the past two weeks,"
said Philippe Gijsels, strategist at Fortis Bank.
"Going forward I think people should remain cautious ... as
everything we have seen in the past two weeks have been based on
hopes of a recovery in the second half and that earnings will
grow ... but I think the market may be disappointed."
The FTSEurofirst 300 index <> was down 0.1 percent
after hitting its highest since November earlier.
Deutsche Bank <DBKGn.DE> fell more than 8 percent after its
provisions for credit losses rose to 1 billion euros in the
second quarter from 135 million euros a year earlier.
U.S. stock futures <SPc1> were down around 0.4 percent.
Wall Street ended higher on Monday after data showed home
sales surged in June, a sign that the domestic housing market --
which led the world's biggest economy into recession -- may have
hit bottom and is starting to rebound. More housing data is due
later. <ECON>
MSCI world equity index <.MIWD00000PUS> was still up 0.3
percent, having hit its highest since October earlier. The index
is up 7.6 percent this month and has risen nearly 16 percent
since January.
"The rally witnessed over the last two weeks could, in fact,
imply that the market is getting ahead of itself and discounting
a profit rebound, but we believe the underlying cyclical rally
ultimately will be durable," Bob Doll, global chief investment
officer at BlackRock, said in a note to clients.
"The risks are that inflation expectations put Treasury
yields and borrowing rates higher before the recovery gains
traction, and that improving consumer spending contracts
again next year after the impact of fiscal stimulus."
According to Thomson Reuters data, out of 202 firms on the
S&P 500 index <.SPX>, 156 -- or 77 percent -- beat earnings
expectations.
Emerging stocks <.MSCIEF> rose 0.8 percent.
U.S. crude oil <CLc1> fell 0.1 percent to $68.31 a barrel.
The September bund futures <FGBLc1> rose 26 ticks as
equities and other risky assets turned lower.
The dollar <.DXY> fell to its weakest level since December
against a basket of major currencies while it hit eight-week
lows of $1.4303 per euro <EUR=>.
The Australian dollar hit a 2009 high against the dollar
<AUD=> and government bonds <0#YBA:> fell after the country's
central bank governor Glenn Stevens said risks to the economy
were now more balanced and warned that low interest rates could
merely inflate a new housing bubble.
(Additional reporting by Joanne Frearson; Editing by Andy
Bruce)
