* Euro zone talks awaited, markets expect Irish bailout
* Ireland's borrowing costs and CDS rise
* World stocks set to fall for seventh straight session
* China rate rise concerns weigh on copper
* For a TAKE A LOOK on Ireland, click on []
By Dominic Lau
LONDON, Nov 16 (Reuters) - World stocks fell for the seventh
straight session on Tuesday on persistent worries over Ireland's
debt problems and China's fiscal tightening, and Irish debt
yields rose further before talks on the crisis.
Concerns over more official steps in China to cool its
liquidity-driven asset price rally also weighed on copper as the
country is a major consumer of commodities, while U.S.
Treasuries stabilised following a sharp sell-off.
U.S. stock index futures fell, signalling a weak open on
Wall Street.
Ireland's bond yields rose ahead of euro zone talks in
Brussels later in the day to find a way out of Ireland's debt
problem. Dublin, however, resisted calls to seek a state bailout
by contending that only its banks may need help.
"We're waiting for news. I think the market has whipped
itself into a frenzy and I'm not convinced we're going to get
anything substantial," a London-based trader said.
The premium investors demand to hold Irish government bonds
rather than German benchmarks <IE10YT=RR> <DE10YT=RR> widened to
575 basis points from around 562 bps at Monday's settlement.
The cost of insuring against debt default in Ireland,
Portugal and Greece crept higher. Ireland's five-year credit
default swaps rose 11 basis points to 508 bps, while those for
Portugal were up 10 bps to 422 bps.
Irish stocks <.ISEQ> fell 0.8 percent, Spain's share
benchmark <> shed 1.5 percent and the Thomson Reuters
Peripheral Eurozone Countries Index <.TRXFLDPIPU> eased 1.4
percent.
The euro <EUR=> was steady at $1.3585, erasing gains after a
stronger-than-expected reading of German ZEW institute's
economic sentiment index. Earlier in the day, the single
currency hit its weakest since late September.
The dollar rose 0.3 percent versus a basket of currencies
<.DXY>.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Euro zone struggles with debt graphic:
http://r.reuters.com/hyb65p
Ireland's bailout graphic: http://r.reuters.com/wuv48p
FX futures positioning: http://r.reuters.com/kus26k
ECB bond buy graphic: http://r.reuters.com/zeq88n
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
STOCKS, COMMODITIES UNDER PRESSURE
U.S. stock index futures <SPc1> <DJc1> <NDc1> dropped 0.6 to
0.7 percent and Europe's FTSEurofirst 300 <> index eased
1.2 percent
World equities measured by MSCI All-Country World Index
<.MIWD00000PUS> fell 0.5 percent, hitting a two-week low.
In Asia, China's share benchmark <> lost 4 percent, its
lowest close in a month, on renewed talk of further policy
tightening, and Japan's Nikkei average <> fell 0.3 percent.
Oil <CLc1> lost 1.3 percent to trade below $84 a barrel, and
copper <CMCU3> dropped 1.6 percent, while safe-haven gold <XAU=>
was steady at $1,360.20 an ounce.
Benchmark 10-year U.S. Treasury yields <US10YT=RR> recovered
and traded at 2.9151 percent after hitting 2.97 percent, the
highest level in more than three months, on worries over the
future of the Federal Reserve's $600 billion bond programme.
However, New York Fed President William Dudley defended the
U.S. central bank's controversial bond-buying plan and said
withdrawing the programme could take years. []
Credit Suisse private bank said in a note that any periphery
inspired sell-off in European equities offered a buying
opportunity for European export stocks.
"One silver lining in the previous bouts of Eurozone
specific volatility earlier this year was the strong performance
of Eurozone exporters in the context of a weaker euro," it said.
"In this respect, we believe that any euro zone indebtedness
related sell-off in broad equity markets should provide a good
buying opportunity for euro zone export related stocks."
(Additional reporting by William James and Jessica Mortimer;
Editing by Giles Elgood)
