GLOBAL MARKETS-World stocks, euro dip on renewed Greek worries

* World stocks under pressure, markets off recent highs

* Euro falls against dollar on Greece, Fed rumor

* US equities gain on earnings, inflation in check (Rewrites first paragraph, updates with close of European markets, Federal Reserve no comment on discount rate rumor)

By Jennifer Ablan

NEW YORK, March 18 (Reuters) - World stocks dropped on Thursday and the euro weakened against the U.S. dollar on renewed worries about Greece, which said it may be unable to solve its fiscal problems if borrowing costs stay high.

Adding to the moves in currencies, traders linked the euro's selling to rumors the U.S. Federal Reserve would hike the discount rate. Asked about the speculation, the Fed said it does not comment on rumors. For details, see [ID:nN18233346]

The euro EUR= fell to session lows against the U.S. dollar of $1.3587 before recovering to $1.3619 at midday in New York, according to Reuters data. The MSCI's all-country world stock index .MIWD00000PUS dipped 0.46 percent while its emerging market-only counterpart .MSCIEF fell 0.47 percent.

Greece raised the stakes in its quest for EU help to tackle its debt crisis, saying it cannot achieve promised deficit cuts if its borrowing costs remain so high and may have to call in the IMF. [ID:nLDE62H0LL].

"This just highlights the uncertainty surrounding the Greece issue. There seems to be no consensus in the euro zone, which is undermining confidence and that is what is weighing on the euro today," said Antje Praefcke, currency strategist at Commerzbank.

The pan-European FTSEurofirst 300 .FTEU3 index of shares dropped 0.11 percent to end at 1,068.93 points, while the Nikkei 225 Index .N225 fell 0.95 percent.

US EQUITIES RISE ON DATA

U.S. stocks rose, with the Consumer Price Index, an inflation gauge, unchanged in February. Both Nike Inc (NKE.N) and GameStop (GME.N) rallied after reporting results.

"Earnings continue to be good, and along with a lack of inflation pressure, there's nothing preventing the markets from continuing on their uptrend," said Carl Birkelbach, chairman of Birkelbach Investment Securities in Chicago.

The Dow Jones industrial average .DJI was up 27.59 points, or 0.26 percent, at 10,761.26, during mid-day trading. But the benchmark Standard & Poor's 500 Index .SPX was down 2.35 points, or 0.20 percent, at 1,163.86, while the Nasdaq Composite Index .IXIC was up 0.21 point, or 0.01 percent, at 2,389.30.

U.S. Treasury debt prices fell on looming supply, overshadowing tame inflation data. The benchmark 10-year U.S. Treasury note US10YT=RR was down 8/32, with the yield at 3.6702 percent, while the 2-year U.S. Treasury note US2YT=RR was down 3/32, with the yield at 0.9601 percent.

At the longer end of the Treasury curve, the 30-year U.S. Treasury bond US30YT=RR was down 11/32, with the yield at 4.591 percent.

The dollar was up against a basket of major trading-partner currencies, with the U.S. Dollar Index .DXY up 0.72 percent at 80.214 from a previous session close of 79.638. Against the Japanese yen, the dollar JPY= was down 0.03 percent at 90.24 from a previous session close of 90.270.

U.S. light sweet crude oil CLc1 fell 80 cents, or 0.96 percent, to $82.13 per barrel, while spot gold prices XAU= rose $1.20, or 0.11 percent, to $1125.20.

Meanwhile, the Reuters/Jefferies CRB Index .CRB was down 1.30 points, or 0.47 percent, at 275.00. (Additional reporting by Ellis Mnyandu in New York and Brian Gorman and Jeremy Gaunt in London; Editing by Kenneth Barry)