* European, Asian shares fall on growth worries
* Aussie dlr at 2-wk low, mkt trims bets on large rate rise
* U.S. equity futures down
(Updates throughout, changes byline, dateline, pvs HONG KONG)
By Emelia Sithole-Matarise
LONDON, Oct 28 (Reuters) - World stocks slid on Wednesday on
worries about the pace of economic recovery after a dip in U.S.
consumer confidence, while the Australian dollar fell as
inflation figures pared bets on an aggressive rate rise.
European shares hit a three-week low, tracking losses in
Asia and on Wall Street overnight, spurring safety bids for less
risky government bonds. U.S. equity futures were down 0.2
percent <SPc1>, pointing to further losses on Wall Street.
The Conference Board's weaker-than-expected U.S. consumer
confidence index for October dampened investor appetite for
riskier assets like equities and high-yielding and
growth-related currencies. []
"As long as people feel uncertain about the sustainability
of this global economic recovery, risk aversion will play a
role," said Johan Javeus, a currency strategist at SEB in
Stockholm.
The pan-European FTSEurofirst 300 index <> fell more
than 1 percent, reversing the previous day's gains.
The MSCI's all-country world stocks index <.MIWD00000PUS>
was down 0.5 percent by 0838 GMT to its lowest in three weeks.
Its emerging market sub-index <.MSCIEF> was down 1.6 percent and
Japan's Nikkei <> closing down 1.35 percent.
The Australian dollar fell to a two-week low after consumer
price inflation was generally in line with forecasts but not
strong enough to justify expectations for an aggressive interest
rate rise by Australia's central bank next week. []
In Europe, focus turns to Norway later on Wednesday, with
Norges Bank expected to be the first European central bank to
raise interest rates since the global financial crisis.
Euro zone government bonds and U.S. Treasuries were firmer
but gains were seen limited as traders braced for fresh supply
of German five-year bonds and five-year Treasury notes.
The benchmark 10-year Treasury note yield was down about two
basis points at 3.434 percent <US10YT=RR> as were 10-year Bund
yields at 3.246 percent <EU10YT=RR>.
"With the global tone of equity markets weakening we think a
bullish fixed income correction is becoming increasingly
likely," Societe Generale analysts said in a note.
U.S. durable goods data, due later on Wednesday, will give
further clues on the state of U.S. consumption.
Oil slipped to around $79 a barrel, giving up some of the
previous day's 1.1 percent gain on weaker equities but losses
were limited after industry data showed a surprise large
drawdown in U.S. crude inventories.
Crude for December delivery <CLc1> fell more than 10 cents
to $79.01 a barrel by 0925 GMT, after settling up 87 cents on
Tuesday, its first rise in four days.
(Additional reporting by Jamie McGeever and Ian Chua, editing
by Mike Peacock)
