GLOBAL MARKETS-Shares, dollar dip on econ gloom, bank concerns

                                
* MSCI world equity index down 0.2 percent at 224.77
                                
 * China cuts rates but gloomy Japan, euro zone data weighs
                                
 * Dollar weakens; bonds rise
                                
 
                                
 By Natsuko Waki
                                
 LONDON, Dec 22 (Reuters) - Global shares weakened on Monday
and the dollar fell broadly, weighed by signs of a deepening
recession in Japan and the euro zone and concerns about the
banking sector around the world.
                                
 China's interest rate cut -- the fifth move since September
-- failed to boost stocks as data showed the deepest plunge on
record in euro zone industrial new orders and a record annual
fall in Japanese exports in November.
 Ireland's weekend announcement that it would take stakes in
its three main banks for 5.5 billion euros further underlined
the global scope of the worst financial crisis in 80 years.
                                
 "One thing you can say for sure is that there has been no
Christmas rally," said Philip Isherwood, strategist at Dresdner
Kleinwort. 
                                
 "The macro outlook is savage. And we want earnings season
out of the way. We know it's going to be bad."
                                
 The MSCI world equity index <.MIWD00000PUS> fell 0.15
percent.
                                
 The index rallied last week, rising 20 percent since
November 21, when it hit the 5-1/2 year low. It is still on
track for its first monthly gain in December after six
successive months of losses.
                                
 "People can't see where the turnaround is going to come from
-- the one piece of good news is that most of the bad news has
been discounted," said Justin Urquhart Stewart, investment
director at Seven Investment Management.
                                
 The FTSEurofirst 300 index of leading European shares
<.FTEU3> fell 1.4 percent, led by falls in banks such as BNP
Paribas <BNPP.PA>. Emerging stocks <.MSCIEF> fell 1.6 percent.
                                
 U.S. stock futures were pointing to a slightly firmer open
on Wall Street.
                                
 
                                
 EURO AND EASING
                                
 The euro <EUR=> rose 0.4 percent to $1.4123. It was up over
1 percent against the dollar at one point as investors grew
worried about the economic impact of the U.S. car industry's
expected restructuring. The U.S. government moved on Friday to
throw its automakers a $17.4 billion lifeline.
                                
 The euro's trade-weighted exchange rate is up more than 7
percent this month.
                                
 "Europe will ultimately need some effective easing one way
or another. And the tightening we have seen ultimately is likely
to add to the downward pressure on European growth and
inflation, and the upward pressure on European bonds," Goldman
Sachs said in a note to clients.
                                
 Against a basket of major currencies <.DXY>, the greenback
ticked lower, on track for its biggest monthly loss since 1985.
                                
 Oil prices <CLc1> rose 0.5 percent to $42.59 a barrel after
OPEC producers promised to keep to the cartel's agreement to cut
back production.
                                
The March bund futures <FGBLc1> were up 42 ticks.
 (Additional reporting by Brian Gorman; Editing by Victoria
Main)