* MSCI world equity index down 0.16 percent at 343.19
* S&P warnings, earnings disappointment weigh
* Oil resumes rise from last week's seven-week low
By Natsuko Waki
LONDON, July 28 (Reuters) - World stocks slipped on Monday
as some disappointing earnings in Europe and a survey showing
German consumer morale at a 5-year low followed a warning that
the United States' major mortgage lenders could lose their top
credit rating.
Oil prices rose towards $124 a barrel from last week's
seven-week low, weighing on investor sentiment, while
government bonds attracted safe-haven demand.
The dollar slipped after hitting a one-month high above 108
yen <JPY=> earlier. It was steady against a basket of major
currencies <.DXY>.
News that U.S. Congress passed a rescue package that
includes a $300 billion fund to help troubled homeowners gave no
lasting support for risky assets as Standard & Poor's said it
may cut ratings on Fannie Mae <FNM.N> and Freddie Mac <FRE.N>.
The warnings on the currently triple-A rated preferred
shares and subordinated bonds of the two mortgage giants
followed a move by U.S. regulators to seize two regional banks
[] on Friday. They represented the sixth and
seventh bank failures this year as financial firms struggle with
the deepest housing slump since the Great Depression.
In Europe, firms such as Ryanair <RYA.I> and TNT <TNT.AS>
reported a fall in quarterly profits, while HBOS <HBOS.L> fell
after weekend reports that the bank is due to report more
writedowns at its results on Thursday.
"After several (profit) warnings, investors will be cautious
and concerned about seeing further warnings," said Stefan de
Schutter, asset manager at Alpha Trading in Frankfurt.
The FTSEurofirst 300 index <> fell 0.8 percent while
the MSCI main world equity index <.MIWD00000PUS> lost 0.2
percent after a rally from July's 21-month low fizzled out last
week.
DATA DELUGE
With plenty of negative corporate news, data and surveys
offer mixed readings on the global economy.
The GfK market research group said German consumers have
become more downbeat than at any time since the recession year
of 2003 due to growing concerns about inflation and financial
market turmoil.
On Friday, U.S. data painted a less gloomy picture. U.S.
consumer sentiment crept higher in July from a 28-year low and
business investment rose unexpectedly in June. The
closely-watched U.S. jobs report is due later in the week.
"We have an absolute deluge of data this week... The focus
will be on how the data combines with oil prices and the equity
market," said Marc Oswald, strategist at Monument Securities.
"The question will be at what point stronger data (will
foster) the perception that the U.S. economy is doing better
than it has been."
Emerging sovereign spreads <11EMJ> widened 3 basis points
while emerging stocks <.MSCIEF> were down 0.1 percent.
The September Bund future <FGBLU8> rose 16 ticks, drawing in
safe-haven demand as stocks weakened.
U.S. light crude <CLc1> rose 0.6 percent to $123.99 a barrel
after falling more than $20 last week from its record high.
Gold <XAU=> rose to $928.55 an ounce.
(Additional reporting by Peter Starck and Naomi Tajitsu;
Editing by Ruth Pitchford)
