* Euro zone talks awaited, markets expect Irish bailout
* World stocks set to fall for seventh straight session
* Possibility Chinese tightening weighs on commodities
* For a TAKE A LOOK on Ireland, click on []
(Updates with U.S. markets' open)
By Walter Brandimarte and Dominic Lau
NEW YORK/LONDON, Nov 16 (Reuters) - World stocks fell for
the seventh straight session on Tuesday as Europe's debt
problems and expectations of tighter credit in China weighed on
commodity prices and hurt investor sentiment.
The dollar remained at a seven-week high against major
currencies as anxiety about the outcome of Ireland's debt
crisis kept the euro subdued.
Ireland's bond yields rose before a meeting of euro zone
finance ministers in Brussels where they will discuss later on
Tuesday a solution for the crisis. Dublin, however, resisted
calls to seek a state bailout by contending that only its banks
may need help.
"There's a global concern that if Ireland needs aid, it
could become a domino effect with other countries," said Cort
Gwon, director of trading strategies and research at FBN
Securities in New York.
"Especially at such a sensitive time in the economy to have
a setback in Europe could mean a setback for the rest of the
world, too."
Major U.S. stock indexes sank more than 1 percent.
The premium investors demand to hold Irish government bonds
rather than German benchmarks <IE10YT=RR> <DE10YT=RR> widened
to 575 basis points from around 562 bps at Monday's settlement.
The cost of insuring against debt default in Ireland, Portugal
and Greece also crept higher.
World stocks fell 1.45 percent according to the MSCI
All-Country World Index <.MIWD00000PUS>. The index has lost
nearly 4 percent since Nov. 5, when it closed higher for the
last time.
In Europe, the FTSEurofirst 300 <> index of top
shares was down 1.9 percent to 1,091.03 points.
The Dow Jones industrial average <> was down 130.52
points, or 1.17 percent, at 11,071.45, while The Standard &
Poor's 500 Index <.SPX> lost 13.54 points, or 1.13 percent, to
1,184.21. The Nasdaq Composite Index <> declined 28.54
points, or 1.14 percent, to 2,485.28.
The euro <EUR=> slipped 0.29 percent to $1.3543 as anxiety
about Ireland eclipsed a stronger-than-expected reading of
German ZEW institute's economic sentiment index.
The dollar rose 0.6 percent versus a basket of major
currencies, according to the U.S. Dollar Index <.DXY>.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Euro zone debt graphic: http://r.reuters.com/hyb65p
Ireland's bailout graphic: http://r.reuters.com/wuv48p
FX futures positioning: http://r.reuters.com/kus26k
ECB bond buy graphic: http://r.reuters.com/zeq88n
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
CHINESE TIGHTENING
Chinese shares <> sank nearly 4 percent to a one-month
low on reports that China will unveil food price controls and
crack down on commodity speculation to contain inflationary
pressure. []
The reports increased expectations that China will further
tighten monetary policy to help fight inflation. Commodity
prices fell as a result, as China is one of the world's top
consumers of raw materials.
U.S. crude oil prices <CLc1> lost 3 percent to $82.33 per
barrel, while spot gold prices <XAU=> fell $14.09, or 1.04
percent, to $1,344.80.
The Reuters/Jefferies CRB Index <.CRB> of commodities
futures was down 1.86 percent.
Benchmark 10-year U.S. Treasury yields <US10YT=RR>
recovered from Monday's selloff and rose 3/32 in price, sending
the yield down to 2.96 percent.
Investors bought Treasuries again on news that core U.S.
producer prices fell unexpectedly in October, supporting the
case for the Federal Reserve's program of bond repurchases.
(Additional reporting by Ryan Vlastelica, Ellen Freilich and
Nick Olivari; Editing by Kenneth Barry)
