GLOBAL MARKETS-World stocks hit 5-1/2 year low, oil tumbles

                                
 * MSCI world equity index down 2.04 pct at 198.52
                                
 * Oil drops below $52 to 22-month low
                                
 * U.S. stock futures pare losses on Citi stake, SNB cut 
                                
 
                                
 By Carolyn Cohn
                                
 LONDON, Nov 20 (Reuters) - World stocks hit 5-1/2 year lows
and oil hit 22-month troughs on Thursday on worries over bank
giant Citigroup and U.S. automakers, though they trimmed losses
on an increased Saudi stake in Citi and a Swiss rate cut.
                                
 Citigroup Inc <C.N> shares tumbled to a 13-year low on
Wednesday as investors questioned the survival prospects of the
U.S. banking giant. [nN19311307]
                                
 But the shares rose in pre-market trading on Thursday after
Saudi Prince Alwaleed said he had boosted his stake in Citigroup
back to 5 percent from less than 4 percent.
                                
 The Swiss National Bank cut rates by 100 basis points on
Thursday to a target range for 3-month Swiss franc Libor of
0.5-1.5 percent, joining central banks elsewhere who have cut
rates sharply to boost their economies.
                                
 "This move clearly signals that the SNB are concerned about
deflationary risks. This joins them with the Fed and BoE who
have also expressed similar concerns in recent weeks," said UBS
analysts in a client note.
                                
 The MSCI world equity index <.MIWD00000PUS> fell to 197.72,
its lowest since May 2003, and was trading at 198.52 at 1250
GMT, down 2.04 percent on the day.
                                
 U.S. stock futures were down 0.79 percent <SPc1> and the
FTSEurofirst 300 index of leading European shares <.FTEU3> was
down 2.5 percent, after earlier hitting a 5-1/2 year low.
                                
 U.S. automakers were also weighing on equities, with at
least one among household names General Motors Corp <GM.N>, Ford
Motor Co <F.N> and Chrysler LLC at risk of bankruptcy if a
last-minute bail-out plan fails. [ID:nN19320198]
                                
 However, the dividend yield on the U.S. equity market is now
higher than the 10-year US Treasury bond yield for the first
time since 1958, Barclays Wealth said in a note.
                                
 "Absolutely everyone is concentrated on risks and fear
rules," said Nick Purves, fund manager at Schroders.
                                
 "You are now adequately compensated for taking that risk."
                                
 Federal Reserve officials slashed economic growth forecasts
through 2009 on Wednesday, with the lower range of the Fed's
central tendencies forecasting the U.S. economy could shrink by
0.2 percent. [ID:nN19327117].
                                
 
                                
 OIL FALLS
                                
 Oil fell by more than $1.50 a barrel to 22-month lows at
$51.95 <CLc1>, as the slumping global economy hit demand.
                                
 Two-year U.S. Treasury yields hit record lows at 1.06
percent <US2YT=RR> on expectations of a 50 basis point U.S. rate
cut to 0.50 percent next month. Thirty-year yields hit their
lowest since the early 1960s.
                                
 Euro zone government bond yields hit their lowest since July
2005 at 2.095 percent <EU2YT=RR>.
                                
 The dollar trimmed earlier losses but was down 0.27 percent
to 95.65 against the safe-haven yen <JPY=>, and edged lower
against the euro to $1.2547 <EUR=>.
                                
 Emerging markets suffered from falling commodity prices and
global demand. The MSCI emerging equities index <.MSCIEF>
dropped 4.71 percent to 466.52.
                                
 (Additional reporting by Natsuko Waki; editing by Chris
Pizzey)