GLOBAL MARKETS-Stocks, oil off on fall in US consumer confidence

                                
   * World stocks slide as poor results, sentiment weigh
                                
 * Dollar rises from 2009 low after U.S. consumer data
                                
 * Oil falls 2 percent, U.S. consumer confidence weighs
                                
 * Bonds' safe-haven appeal bolstered by weaker stocks
 (Updates with U.S. markets activity, changes byline, dateline;
previous LONDON)
                                
 By Herbert Lash
                                
 NEW YORK, July 28 (Reuters) - Global stocks and crude oil
fell on Tuesday after an unexpected drop in U.S. consumer
confidence in July and poor corporate results helped douse a
recent rally in worldwide equity and commodity markets.
                                
 The slide in consumer sentiment enhanced the appeal of
government debt and the U.S dollar, which rebounded from its
lowest level this year versus a basket of currencies. For more
see [ID:nN28419221] [ID:nN28287288].
                                
 Oil fell more than 2 percent to below $67 a barrel while
copper prices, which reflect demand in the construction
industry, also slipped. [ID:nSP262574]
                                
 The yen rallied across the board as equity markets slid and
investors dumped riskier assets.
                                
 The slide in equity markets snuffed an 11-day winning
streak of Britain's top share index, while Japan's Nikkei share
average ended nine straight sessions of gains, its longest
winning run since 1988.
                                
 U.S. consumer confidence recorded its second consecutive
decline as sentiment remained hampered by a difficult job
market, Conference Board data showed. [ID:nN28106587]
                                
 "The (U.S.) consumer confidence number was a big shocker,
not necessarily the headline but definitely the sub-component
for the labor market," said Kenneth Broux, financial market
economist at Lloyds Banking Group in London.
                                
 The Conference Board, an industry group, said its index of
consumer attitudes slid to 46.6 in July from 49.3 in June.
Economists had expected a reading of 49.0, based on the median
of 64 forecasts in a Reuters poll. [ID:nN28130084]
                                
 Disappointing quarterly results from companies like Office
Depot Inc <ODP.N>, the No. 2 U.S. office supply retailer,
damped hopes for a strong economic recovery.
                                
 "Consumers are feeling no love in this recovery," said
Boris Schlossberg, director of currency research at GFT Forex
in New York. "All this suggests is that the critical assumption
by the recovery bulls that consumption will come back as the
recovery takes hold is faulty."
                                
 Shortly after 1 p.m. (1700 GMT) the Dow Jones industrial
average <.DJI> was down 73.99 points, or 0.81 percent, at
9,034.52. The Standard & Poor's 500 Index <.SPX> was down 10.03
points, or 1.02 percent, at 972.15. The Nasdaq Composite Index
<.IXIC> was down 12.43 points, or 0.63 percent, at 1,955.46.
                                
 European shares fell as Deutsche Bank <DBKGn.DE> led banks
lower after it raised its loan loss provisions, while BP's
<BP.L> mixed results weighed on energy stocks. [ID:nLS726509]
                                
 Banks were among the worst hit, with Deutsche Bank falling
more than 11 percent.
                                
 The pan-European FTSEurofirst 300 <.FTEU3> index ended down
1 percent at 902.85.
                                
 The FTSE 100 <.FTSE> fell 57.29 points at 4,528.84, in a
choppy session that saw it struggling to obtain a record 12th
day of gains. The index has risen 11 percent in two weeks.
                                
 Crude oil slide. U.S. light sweet crude oil <CLc1> fell
$1.59 to $66.79 a barrel.
                                
 "The petroleum markets are backing off from the highs,
seemingly prepared, along with the S&P 500, to at least take a
break from the recent rally," said Tim Evans, an analyst at
Citi Futures Perspective in New York.
                                
 Prices for U.S. and euro zone government debt rose as the
fall in equities tempted investors back into bonds, but
Treasuries pared gains after the results of a $42 billion
auction of two-year notes was announced.
                                
 The benchmark 10-year U.S. Treasury note <US10YT=RR> was up
18/32 in price to yield 3.65 percent. The 2-year U.S. Treasury
note <US2YT=RR> was down 2/32 in price to yield 1.08 percent.
                                
 The dollar was up against a basket of major currencies,
with the U.S. Dollar Index <.DXY> up 0.40 percent at 78.943.
                                
 The euro <EUR=> was down 0.61 percent at $1.4157, while
against the yen, the dollar <JPY=> was down 1.05 percent at
94.18.
                                
 Spot gold prices <XAU=> fell $14.25 to $938.40 an ounce.
                                
 Japan's Nikkei share average <.N225> edged down 1.4 points
to 10,087.26, while the MSCI index of Asia Pacific stocks
outside Japan <.MIAPJ0000PUS> rose 1.5 percent to a 10-month
high.
 (Reporting by Rachel Chang, Wanfeng Zhou and Chris Reese in
New York and Jamie McGeever, Dominic Lau and Rebekah Curtis in
London; Writing by Herbert Lash; Editing by James Dalgleish)