GLOBAL MARKETS-Stocks slip, dollar falls on economic data

                                
  
                                
 * Wall Street falls as weak data dims economic outlook
                                
 * Dollar falls vs yen after U.S. durable goods report
                                
 * Bonds gains on unexpected decline in durables
                                
 * Oil drops below $77 a barrel
 (Adds opening of U.S. markets, byline, dateline NEW YORK)
                                
 By Jeremy Gaunt and Herbert Lash
                                
 LONDON/NEW YORK, July 28 (Reuters) - World stocks dipped,
threatening a fifth straight day of gains on Wednesday as weak
orders for U.S. durable goods damped the economic outlook and
pushed the dollar lower.
                                
 New orders for long-lasting U.S. manufactured goods fell
unexpectedly for a second straight month in June, marking their
largest decline since August in a further sign the economy was
cooling in the second quarter. But some analysts said the
report was respectable after stripping out some categories. For
details see; [ID:nN28189480]
                                
 Still, the dollar fell versus the Japanese yen as the
durable goods reading boosted fears about the U.S. outlook.
[ID:nN28171353]
                                
 Oil fell below $77 a barrel after an industry report showed
an unexpected rise in U.S. crude stocks and the durable goods
data fueled doubts about the pace of recovery in energy demand.
[ID:nSGE66R07C]
                                
 The Commerce Department said U.S. durable goods orders fell
1.0 percent in June after a revised 0.8 percent drop in May.
Analysts forecast an increase of 1.0 percent.
                                
 "Combined with the confidence numbers yesterday, they don't
bode well for continued progress in the economy," said Alan
Lancz, president of an investment management firm in Toledo,
Ohio. "It will be more difficult to break out of the trading
range (for stocks) and might be settling back a little bit."
                                
 However, Michael Woolfolk, senior currency strategist at
BNY Mellon in New York, said the durable goods report is always
difficult to digest. The number was negative because of
commercial aircraft orders, he said.
                                
 "If you strip out aircraft and defense, you're left with a
respectable rise of 0.6 percent" in the important capital goods
category, Woolfolk said.
                                
 Those orders were up 15.9 percent on a year-on-year basis.
"That's consistent with a strong recovery in industrial
production and durable goods orders. So these numbers are not
very concerning," he said.
                                
 MSCI's all-country world index <.MIWD00000PUS> slipped 0.1
percent, and the Thomson Reuters global stock index
<.TRXFLDGLPU> was also lower.
                                
 Earnings reports in Europe and Japan supported equity
markets earlier, but the economic data weighed on sentiment
already soured by a Tuesday report that U.S. consumer
confidence in July fell to its lowest since February.
                                
 The Dow Jones industrial average <.DJI> was down 20.28
points, or 0.19 percent, at 10,517.41. The Standard & Poor's
500 Index <.SPX> fell 4.87 points, or 0.44 percent, at
1,108.97. The Nasdaq Composite Index <.IXIC> was off 14.11
points, or 0.62 percent, at 2,274.14.
                                
 The FTSEurofirst 300 <.FTEU3> dropped 0.4 percent.
                                
 U.S. corporate results continued to surprise on the upside.
Aircraft maker Boeing Co <BA.N>, defense contractor General
Dynamics Corp <GD.N>  and ConocoPhillips <COP.N>, the No. 3
U.S. oil company, all beat expectations.
                                
 Demand for the dollar rose against the euro as a rally in
the single currency stalled and investors awaited the release
of the Federal Reserve's reading on regional economic
conditions, known as the Beige Book, later in the session.
                                
 "The U.S. data now is the main focus in the forex markets,
and it continues to come on the disappointing side," said
Amelia Bourdeau, a currency strategist at UBS AG in Stamford,
Connecticut.
                                
 The dollar was down against a basket of major currencies,
with the U.S. Dollar Index <.DXY> off 0.26 percent at 81.97.
                                
 The euro <EUR=> was up 0.20 percent at $1.3019, while
against the yen, the dollar <JPY=> dipped 0.48 percent at
87.46.
                                
 Sterling hit a five-month high against the dollar as
earlier comments from the Bank of England did little to quell
optimism about the UK economic outlook. [ID:nLDE66R1R4]
                                
 Copper rose to its highest point since mid-May after
assurances on economic growth from top metals consumer China
and improving fundamentals. [ID:nLDE66R13M]
                                
 U.S. Treasuries gained on the U.S. durable goods data. The
benchmark 10-year U.S. Treasury note <US10YT=RR> was up 2/32 in
price to yield 3.04 percent.
                                
 U.S. light sweet crude oil <CLc1> fell 85 cents to $76.65 a
barrel.
                                
 Earlier, Japan's Nikkei <.N225> climbed 2.7 percent for its
highest close and biggest one-day gain in two weeks. MSCI's
index for Asian stocks less Japan <.MIAPJ0000PUS> trimmed gains
to trade 0.1 percent higher.
  (Reporting by Steven C. Johnson, Ellen Freilich in New York;
Christopher Johnson in London; writing by Herbert Lash)