GLOBAL MARKETS-Stocks, oil fall after China inflation move

                                

                                
 * Global stocks slide on Europe debt unease, China move
                                
 * Euro rises on hopes an Irish aid package is near
                                
 * Oil falls as investors weigh China's move on economy
 (Updates with close of European markets)
                                
 By Herbert Lash
                                
 NEW YORK, Nov 19 (Reuters) - World stocks and commodities
eased on Friday after China acted to slow its heady growth rate
and as investors held out hope for an Irish bailout that would
lift a cloud of uncertainty over markets.
                                
 The euro edged higher and gold prices steadied near $1,350
an ounce on growing confidence that Ireland's banking and debt
crisis will soon be resolved. For details see [ID:nN19115574]
                                
 Hopes that Ireland was near a deal to get tens of billions
of euros from its European partners and the International
Monetary Fund helped push the euro above $1.37 overnight. But
momentum stalled as traders awaited further details.
                                
 The euro <EUR=> was up 0.04 percent at $1.365.
                                
 Concerns about the Irish debt crisis hit banks in Europe,
while shares of miners and others fell on China's order for
lenders to lock up more money with the central bank, a move
that might slam global growth prospects. [ID:nLDE6AI1NN]
                                
 The People's Bank of China said it will raise bank reserve
requirements for the second time in two weeks, leading to
speculation a hike in interest rates was in the works.
                                
 "The week has been dominated by euro zone peripheral debt
concerns and I sense very few people want to hold onto
positions over the weekend," said Jeremy Batstone-Carr, head of
equities at Charles Stanley.
                                
 "But the big one investors are watching for is what the
Chinese will decide to do about their base rates. We will not
get any further information of this until the next inflation
data comes out."
                                
 MSCI's all-country world stock index <.MIWD00000PUS> fell
about 0.1 percent, while the pan-European FTSEurofirst 300
index <.FTEU3> of top shares closed down 0.5 percent at
1,102.18.
                                
 Wall Street was on course for its second week of losses as
markets continued to pull back in volatile trading from its
recent rally. [ID:nN19182252]
                                
 Investors looked to a period of range-bound trading heading
into the year's end. The benchmark S&P 500 index has fallen
about 2.5 percent the last two weeks but is still up 7 percent
for the year.
                                
 At 12:30 p.m. (1730 GMT), the Dow Jones industrial average
<.DJI> was down 20.13 points, or 0.18 percent, at 11,161.32.
The Standard & Poor's 500 Index <.SPX> was down 2.04 points, or
0.17 percent, at 1,194.65. The Nasdaq Composite Index <.IXIC>
was down 3.27 points, or 0.13 percent, at 2,511.13.
                                
 OIL, COPPER PRICES LOWER
                                
 Oil prices fell more than $1 and copper prices softened,
reversing earlier gains, as speculation of a Chinese interest
rate rise mounted. Crude prices remained volatile ahead of the
December crude contract's expiry on Friday.
                                
 U.S. crude oil <CLc1> was down 63 cents to $81.22 after
earlier falling below $81 a barrel.
                                
 Brent crude futures <LCOc1> fell by $1.01 to $84.04 a
barrel.
                                
 "China (is) tightening policy much earlier in this
inflationary cycle, so that should maintain long-term growth
prospects," said Michael Lewis, global head of Deutsche Bank's
commodities research.
                                
 Spot gold <XAU=> was bid at $1,351.20 an ounce, down
slightly from Thursday.
                                
 The euro edged higher on growing confidence that Irish
discussions over an IMF support package will shore up its
embattled banking sector. EU sources suggested an aid plan will
be unveiled next week. [ID:nLDE6AI0QG]
                                
 The dollar was up against a basket of major trading-partner
currencies, with the U.S. Dollar Index <.DXY> up 0.02 percent
at 78.634.
                                
 Against the Japanese yen, the dollar <JPY=> was down 0.01
percent at 83.49.
                                
 But investors kept to the sidelines in euro zone debt
markets, waiting for further details of any Irish aid package.
[ID:nLDE6AI1PJ]
                                
 Shorter-dated U.S. Treasury prices recovered from early
weakness to be relatively unchanged, while longer bonds rose
after the Federal Reserve bought some debt as part of its bond
purchase program. [ID:nN19182017]
                                
 Two-year notes <US2YT=RR> were little changed in price to
yield 0.50 percent, while The benchmark 10-year U.S. Treasury
note <US10YT=RR> was up 7/32 in price to yield 2.88 percent.
                                
 Asian stock markets were mixed, with MSCI's Asia ex-Japan
index <.MIAPJ0000PUS> down 0.1 percent and Japan's Nikkei
<.N225> average up 0.1 percent.
 (Reporting by Edward Krudy, Wanfeng Zhou and Ellen Freilich in
New York; William James, Zaida Espana and Isabel Coles, Joanne
Frearson, Jan Harvey and Marie-Louise Gumuchian in London;
Writing by Herbert Lash; Editing by Kenneth Barry)