GLOBAL MARKETS-All fall down - stocks, dollar, oil, bonds

                                
 * Stocks, oil, dollar, bonds all fall
                                
 * Wall Street set for poor start, earnings in focus
                                
 * Emerging market sentiment hit by Brazil tax
                                
  
                                
 By Jeremy Gaunt, European Investment Correspondent
                                
 LONDON, Oct 21 (Reuters) - Recent trading patterns broke at
least temporarily on Wednesday with both the dollar and world
stocks slipping, the latter weakened particularly by falling
emerging markets.
                                
 Wall Street looked set for a negative start. Crude oil
<CLc1> dropped as well, sitting below $79 a barrel and pulling
further away from its recent one-year peak. U.S. Treasuries and
euro zone government bonds were also down.
                                
 The day's gainers were to be found in gold and copper.
                                
 The dollar has traded inversely to both oil and equities for
much of this year, so the weakness of all three together was
unusual. Bonds have also tended to trade inversely to stocks.
                                
 Emerging market stocks were underperforming with MSCI's
benchmark index <.MSCIEF> down more than 1 percent compared with
about a third of that developed market stocks.
                                
 Brazilian Finance Minister Guido Mantega announced on Monday
that his government would charge a 2 percent financial
transactions tax on foreign investments in Brazilian stocks and
fixed-income securities in a bid to prevent the country's
currency from strengthening further.
                                
 This hit Brazilian assets but also triggered some concern
among emerging market investors that the idea may spread among
other countries concerned about the degree of "hot money"
flowing into their markets.
                                
 Europe's FTSEurofirst 300 <.FTEU3> was down 0.8 percent
after hitting a one-year high on Tuesday before falling. It has
gained 22 percent this year.
                                
 "It seems that while we may be heading out of a recession,
the pace of recovery may be sluggish at best, and we could well
see more profit-taking on the horizon," said Tim Hughes, head of
sales trading at IG Index, in London.
                                
 WEAK DOLLAR
                                
 The dollar fell against a basket of major currencies <.DXY>
heading for its 10th loss in 15 trading days this month. The
index has also been in the red for seven of the past eight
months.
                                
 Sentiment towards the currency continues to be hurt by the
prospect of U.S. interest rates staying at exceptionally low
levels for longer than most other currencies.
                                
 The New Zealand dollar shone meanwhile after New Zealand's
central bank chief Alan Bollard said a high currency was not
necessarily an obstacle to raising the cash rate.
[ID:nSYD348934]
                                
 The euro was flat against the dollar compared with late New
York trade at $1.4923 <EUR=>.
                                
 Euro zone government bond yields were higher as prices fell.
The 10-year Bund <EU10YT=RR> yielding 3.288, up 5 basis points.
 (Additional reporting by Atul Prakash and Christoph Steitz;
Editing by Andy Bruce)