Global stocks slip on weak U.S. consumer data

NEW YORK (Reuters) - Global stocks and crude oil fell on Tuesday after U.S. consumer confidence slid for a second straight month in July and poor corporate results doused a recent rally in world equity and commodity markets.

The slide in consumer sentiment enhanced the appeal of government debt and the U.S. dollar, which rebounded from its lowest level this year versus a basket of currencies.

Oil fell to settle just above $67 a barrel while the price of copper, which reflect demand in the construction industry, closed about 1 percent lower.

The yen also rallied across the board as equity markets slid and investors dumped riskier assets.

The slide in equity markets snuffed an 11-day winning streak of Britain's top share index, while Japan's Nikkei share average ended nine straight sessions of gains, its longest winning run since 1988.

But the Dow and S&P 500 pared losses at the close as investors took a benign view of the weak consumer confidence data and focused on positive earnings reports in the healthcare sector.

The Nasdaq edged higher a day after Amgen's (AMGN.O) strong results buoyed tech stocks.

Still, disappointing quarterly results from companies such as Office Depot Inc (ODP.N), the No. 2 U.S. office supply retailer, damped hopes for a strong economic recovery.

The Dow Jones industrial average .DJI closed down 11.79 points, or 0.13 percent, at 9,096.72. The Standard & Poor's 500 Index .SPX fell 2.56 points, or 0.26 percent, at 979.62.

The Nasdaq Composite Index .IXIC rose 7.62 points, or 0.39 percent, at 1,975.51.

Shorter-dated U.S. Treasury debt eased after mixed results in an auction of $42 billion of two-year notes left some analysts wondering if the appetite for U.S. government debt might be waning. Longer-dated U.S. Treasury debt prices rose.

"There is an allocation out of stocks and into bonds after the great run that stocks have had," said William O'Donnell, head of U.S. Treasury strategy at RBS Securities in Greenwich, Connecticut.

The benchmark 10-year U.S. Treasury note was up 10/32 in price to yield 3.68 percent. The 2-year U.S. Treasury note fell 3/32 in price to yield 1.09 percent.

The day's big news was the hit U.S. consumer confidence took in July on a weakening job market, which analysts said could prevent near-term economic recovery.

"The consumer confidence number was a big shocker, not necessarily the headline but definitely the sub-component for the labor market," said Kenneth Broux, financial market economist at Lloyds Banking Group in London.

The Conference Board, an industry group, said its index of consumer attitudes slid to 46.6 in July from 49.3 in June. Economists had expected a reading of 49.0, based on the median of 64 forecasts in a Reuters poll.

European shares fell as Deutsche Bank (DBKGn.DE) led banks lower after it raised its loan loss provisions, while BP's (BP.L) mixed results weighed on energy stocks.

The pan-European FTSEurofirst 300 .FTEU3 index ended down nearly 1 percent at 902.85.

The FTSE 100 .FTSE fell 57.29 points at 4,528.84, in a choppy session that saw it struggling to obtain a record 12th day of gains. The index has risen 11 percent in two weeks.

U.S. crude settled down $1.15 at $67.23 a barrel, while London Brent fell 93 cents to settle at $69.88.

"The petroleum markets are backing off from the highs, seemingly prepared, along with the S&P 500, to at least take a break from the recent rally," said Tim Evans, an analyst at Citi Futures Perspective in New York.

The dollar rose against a basket of major currencies, with the U.S. Dollar Index .DXY up 0.37 percent at 78.92.

The euro fell 0.58 percent at $1.4162. Against the yen, the dollar fell 0.57 percent at 94.64.

Spot gold prices fell $15.75 to $936.90 an ounce.

Japan's Nikkei share average .N225 edged down 1.4 points to 10,087.26, while the MSCI index of Asia Pacific stocks outside Japan .MIAPJ0000PUS rose 1.5 percent to a 10-month high.

(Reporting by Rachel Chang, Wanfeng Zhou and Chris Reese in New York, and Jamie McGeever, Dominic Lau and Rebekah Curtis in London; Writing by Herbert Lash; Editing by James Dalgleish)