* Oil down more than 1 percent on OPEC doubts
* Brent crude hits nearly 1-month low
* Banking, mining, weigh on European shares
* Apple pares some losses but still down on declining iPhone sales
* Sterling recovers after Carney's comment (Adds settled oil prices, updates throughout, replaces quote)
By Hilary Russ
NEW YORK, Oct 26 (Reuters) - Apple's results weighed on U.S. equities on Wednesday after the technology giant posted its first annual revenue decline since 2001, offsetting a boost from Boeing's strong profit, while oil fell more than 1 percent amid concerns of a global glut.
Shares of Apple AAPL.O fell as much as 3.7 percent - set for their worst day in six months - after the company said sales of its flagship iPhones fell for the third quarter in a row. world's most valuable public company recovered some losses in later trading and was last down 2.8 percent.
Excluding Apple, earnings are expected to rise 2.9 percent.
"The markets have been rallying in anticipation of good numbers and earnings have been coming in a little bit soft," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.
A rally by Boeing (NYSE:BA) BA.N boosted the Dow. Boeing BA.N shares were trading at their highest level this year, after the world's largest planemaker reported a jump in quarterly profit despite slower sales. Dow Jones industrial average .DJI rose 18.83 points, or 0.1 percent, to 18,188.1, the S&P 500 .SPX lost 5.21 points, or 0.24 percent, to 2,137.95 and the Nasdaq Composite .IXIC dropped 35.47 points, or 0.67 percent, to 5,247.93. results and forecasts from some other major U.S. companies continued to weigh on European and Asian stocks.
Mixed results from Europe's banking sector and declines in mining and energy shares helped push the pan-European STOXX 600 index .STOXX down 0.38 percent. prices bounced off session lows for a time after the U.S. government reported a surprise drawdown in crude inventories. But oil headed negative on growing doubts that OPEC would cut production enough to drain a global oversupply. crude oil futures CLc1 settled at $49.18 a barrel, down 78 cents or 1.56 percent. They had dipped to $48.87, the lowest since Oct. 4. crude LCOc1 was down 91 cents, or 1.79 percent, at $49.88 at 2:36 p.m. ET (1836 GMT), their weakest level in nearly a month.
CARNEY EFFECT
In currency markets, sterling recovered from Monday's lows after Bank of England (BoE) governor Mark Carney said in a speech the central bank could not ignore the effect of sterling's slide on inflation. increased expectations that policymakers would leave rates unchanged next week, rather than cut them as many had expected.
Sterling rose 0.35 percent to $1.2229, coming off Monday's trough of $1.2081, which was the lowest level since the Oct. 7 "flash crash" GBP= .
The euro EUR= , which had slid to a 7 1/2-month low of $1.0851 on Tuesday, was up 0.2 percent to $1.0908.
With investors looking ahead to U.S. third-quarter gross domestic product data on Friday, the dollar index .DXY , which tracks the greenback against a basket of six global peers, fell 0.12 percent to 98.604.
It hit its highest level since Feb. 1 on Tuesday as traders saw a better than 78-percent chance of an interest rise hike by the Federal Reserve in December, according to CME Group's FedWatch tool.
The dollar extended modest gains against the yen, hitting a session high of 104.44 yen JPY= .
For Reuters new Live Markets blog on European and UK stock markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets
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http://tmsnrt.rs/2egbfVh Global assets in 2016
http://reut.rs/1WAiOSC Emerging markets in 2016
http://reut.rs/1ZKAaO6 Global rate cutting frenzy
http://reut.rs/24kleab
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