GLOBAL MARKETS-Recovery doubts take toll on Wall St, lift dollar

                                
 * Global stocks slide amid widespread doubt about recovery
                                
 * U.S. dollar, yen firm as caution reigns on wider markets
                                
 * Oil slides 3 percent on concerns over world's rebound
 (Updates with U.S. markets activity; changes dateline,
previous LONDON)
                                
 By Herbert Lash
                                
 NEW YORK, July 6 (Reuters) - Commodity prices and crude oil
slipped on Monday and global equity markets fell, pulled lower
by raw materials-linked stocks, on widespread doubts about the
potential strength of the world's economic recovery.
                                
 The yen and the U.S. dollar gained broadly as caution about
the global outlook spread across financial markets, leading
investors to shun risk and buy currencies perceived to be safe.
For details: [ID:nN06262569]
                                
 Euro zone government bonds rose, with Bund futures hitting
a seven-week high, lifted by risk aversion and after the Bank
of England had to pay above market prices to buy long-dated
gilts at its weekly operation. [ID:nL6315520]
                                
 But longer-maturity U.S. Treasury debt prices fell on
supply concerns and a stronger-than-expected report on U.S.
services industries, which rekindled hopes of an economic
rebound later this year. [ID:nN06261172]
                                
 The Institute for Supply Management's measure of the
service sector rose to 47.0 in June, the highest level since
last September and up from 44.0 in May. However, for investors
in equities it was not enough to overcome last week's much
worse-than-expected jobs report. [ID:nWEN0263]
                                
 Oil fell more than 4 percent at one point to below $64 a
barrel on growing doubts over the strength of an economic
rebound. [ID:nSYD537953]
                                
 "A lot of people are nervous about the economy and now
everybody wants to get out of the exits at the same time," said
Phil Flynn, an analyst at PFGBest Research in Chicago.
                                
 "We are seeing this in the stock markets, the gold market
and markets for other commodities, including oil. We did get a
little bit of support in the latest ISM numbers, but all in
all, I feel that demand will be on a downward trend in the next
couple of months," Flynn added.
                                
 Before 1 p.m., the Dow Jones industrial average <.DJI> was
down 20.18 points, or 0.24 percent, at 8,260.56. The Standard &
Poor's 500 Index <.SPX> was down 5.11 points, or 0.57 percent,
at 891.31. The Nasdaq Composite Index <.IXIC> was down 23.43
points, or 1.30 percent, at 1,773.09.
                                
 Exxon Mobil Corp <XOM.N> down 1.2 percent and Chevron Corp
<CVX.N> fell 1.1 percent to $62.92, making the two oil
companies among the biggest drags on the Dow.
                                
 Shares of aluminum producer Alcoa Inc AA.N slid 7.8
percent, making it the top drag on the Dow. Alcoa kicks off the
second-quarter earnings season on Wednesday.
                                
 European equities fell for a third straight session as
recovery concerns took their toll on financial, energy and
basic resources stocks. [ID:nL6377627]
                                
 The FTSEurofirst 300 <.FTEU3> index of top European shares
closed down 1.1 percent at 833.03 points,
                                
 Britain's top share index, the FTSE 100 <.FTSE>, fell 1
percent to its lowest close in more than two months, with
miners the main drag. [ID:nL6247597]
                                
 The DJ Stoxx basic resources index <.SXPP> shed 5.2
percent.
                                
 The dollar's rise added pressure to commodities denominated
in the U.S. currency. [USD/] The Reuters-Jefferies CRB index
<.CRB>, a global commodities benchmark, gave up 1.8 percent.
                                
 The dollar was up against a basket of major currencies,
with the U.S. Dollar Index <.DXY> up 0.25 percent at 80.583.
                                
 The euro <EUR=> was down 0.23 percent at $1.3929, while
against the yen, the dollar <JPY=> was down 0.97 percent at
95.10.
                                
 Copper fell more than 3 percent to near two-week lows and
gold slid more than 1 percent as the dollar strengthened
                                
 Spot gold <XAU=> was bid at $923.35 an ounce, while copper
for three-months delivery <MCU3> in London was quoted at $4,960
a tonne.
                                
 The benchmark 10-year U.S. Treasury note <US10YT=RR> was
down 4/32 in price to yield 3.52 percent.
                                
 The 2-year U.S. Treasury note <US2YT=RR> was up 3/32, with
the yield at 0.9375 percent on the notion that the Federal
Reserve will leave its near zero interest rate policy unchanged
in the foreseeable future in a bid to end the recession.
                                
 U.S. light sweet crude oil <CLc1> fell $2.49 to $64.24 a
barrel, and spot gold prices <XAU=> fell $8.25 to $923.25 an
ounce.
                                
 Doubts about the staying power of a global recovery kept
Asian stocks soggy and currencies subdued. Japan's Nikkei
<.N225> fell 1.38 percent and the MSCI index of Asian stocks
outside of Japan eased 1.5 percent <.MIAPJ0000PUS>.
 (Reporting by Leah Schnurr Richard Leong, Nick Olivari and
Matthew Robinson in New York, Simon Falush, Rebekah Curtis, Jan
Harvey, Martina Fuchs and Kirsten Donovan in London; Peter
Starck in Frankfurt; writing by Herbert Lash; Editing by Leslie
Adler)