GLOBAL MARKETS-Stocks pressured as market awaits Paulson

* Global stocks extend fall on doubts over U.S. rescue plan

* MSCI world equity index down 0.6 pct at 314.00

* Eyes on Paulson, Bernanke testimony at 1330 GMT

(Updates prices, adds U.S. forecast)

By Ian Chua

LONDON, Sept 23 (Reuters) - Global stocks fell on Tuesday and the dollar struggled, weighed down by investor worries about political resistance to Washington's $700 billion bailout plan and whether the deal will work.

Worries about delays as the Bush administration and Congress haggle over details of the package paved the way for a negative start on Wall Street as markets awaited U.S. Treasury Secretary Henry Paulson's questioning by the Senate Banking Committee. [ID:nN23363416]

Initial exuberance about the plan to buy up toxic mortgage debt has given way to concerns about how the U.S. government would fund it and whether the package would be enough to boost the world's biggest economy, which is facing a recession.

"The focus does remain on the uncertainty surrounding the U.S. bailout package, the details of it and how exactly the final version will look. The recent developments in the U.S. suggest the debating process will be longer than expected," said David Powell, G10 FX strategist at Bank of America in London.

Nervous investors were also eyeing crude oil, which soared nearly 16 percent in its biggest one-day gain ever on Monday due to the expiry of the front-month futures contract and weakness in the dollar.

But November crude oil futures CLc1 fell $2.47 to below $107 a barrel.

The FTSEurofirst 300 .FTEU3 index of top European shares shed 2.1 percent, extending Monday's 2.1 percent slide, while Germany's DAX .GDAXI fell 0.8 percent.

This followed a decline of 2.2 percent for Asian equities excluding Japan .MIAPJ0000PUS. Japanese financial markets were closed for a holiday on Tuesday.

MSCI's world equity index .MIWD00000PUS shed 0.6 percent.

U.S. stock futures SPc1DJc1NDc1 were all in the red.

"It'll take some months before people can have confidence again in the financial system and in financial counterparties," said Hans-Juergen Delp, equity strategist at Commerzbank in Frankfurt.