GLOBAL MARKETS-U.S. stocks cede gains after German bomb report; oil slides

* Dollar rises as inflation data backs rate hike
* European shares rise after strong corporate reports
* Euro hits seven-month low vs greenback
* Copper struggles at 6-year lows on China demand woes

(Updates to late afternoon)
By Lewis Krauskopf
NEW YORK, Nov 17 (Reuters) - U.S. shares gave up gains on
Tuesday after a soccer game in Germany was called off over
concerns of a bomb attack, while U.S. longer-dated Treasuries
prices held increases as traders cited a burst of safe-haven
bids for bonds.
Oil prices fell sharply as concerns returned about a glut of
supplies, which also undercut equities. The U.S. dollar rose as
firming inflation backed expectations of an impending interest
rate hike.
A friendly soccer game between Germany and the Netherlands
in Hanover, Germany was called off less than two hours before
its start for fear of a bomb attack, German police said.
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Earlier in the day, U.S. stocks had registered strong
increases, fueled by better-than-expected results from retailers
Home Depot (N:HD) HD.N and Wal-Mart Stores (N:WMT) WMT.N .
The Dow Jones industrial average .DJI fell 20.51 points,
or 0.12 percent, to 17,462.5, the S&P 500 .SPX lost 5.82
points, or 0.28 percent, to 2,047.37 and the Nasdaq Composite
.IXIC dropped 5.16 points, or 0.1 percent, to 4,979.46.
In Europe, the FTSEurofirst 300 index .FTEU3 surged 2.6
percent, as Germany's United Internet UTDI.DE and Dutch-based
Randstad RAND.AS , the world's second-biggest staffing company,
posted encouraging results. urn:newsml:reuters.com:*:nL8N13C4EP
MSCI's all-country world index .MIWD00000PUS rose 0.5
percent.
"Overall, there is a macro tailwind for European equities,"
said Lorne Baring, managing director of B Capital Wealth
Management. "The monetary policy of the (European Central Bank)
will continue to weaken the euro versus other major currencies."
Greek stocks surged and bond yields hit their lowest in more
than a year after the country's finance minister said Athens had
reached an agreement with its lenders on financial reforms.
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Data on Tuesday showed U.S. consumer prices increased in
October after two straight months of declines, a sign of firming
inflation that supported expectations the Federal Reserve will
raise interest rates next month. urn:newsml:reuters.com:*:nL1N13C0UU
The dollar index .DXY , which measures the dollar against a
basket of six major currencies, rose 0.15 percent. The euro
EUR= lost 0.3 percent against the dollar, hitting a 7-month
low. urn:newsml:reuters.com:*:nL1N13C15A
"I think the market has the mindset that there is almost
nothing at this stage of the game that is going to dissuade the
Fed from going in December," said Lane Newman, director of
foreign exchange at ING Capital Markets in New York.
Benchmark 10-year Treasuries US10YT=RR were up 4/32 in
price with a yield of 2.2553 percent. Prices on the 30-year bond
US30YT=RR rose 18/32 with a yield of 3.0431 percent.
"There are a lot of reasons to be nervous and for a
flight-to-safety (to bonds)," said Lou Brien, market analyst at
DRW Trading in Chicago.
Oil prices slumped as the global oversupply in crude and
petroleum products returned to focus. Brent crude futures
LCOc1 settled down 99 cents at $43.57 a barrel, touching a
session low at $43.50. U.S. crude futures CLc1 settled down
$1.07 at $40.67 a barrel. urn:newsml:reuters.com:*:nL3N13C0FX
The declines reversed a crude rally on Monday on security
fears related to Friday's attacks in Paris and France's bombing
of Islamic State targets in Syria in the aftermath.
Gold XAU= fell nearly 1 percent, heading back around
six-year lows.
Copper prices touched their lowest point in more than six
years as fears about demand in China and a higher dollar fueled
negative sentiment. urn:newsml:reuters.com:*:nL3N13C33H