GLOBAL MARKETS-U.S. stocks lose gains after German bomb scare; oil drops

* Dollar hits 7-month high as inflation data backs rate hike
* European shares jump after strong corporate reports
* Prices of long-dated U.S. Treasuries rise
* Copper struggles at 6-year lows on China demand woes

(Updates with close of U.S. markets)
By Lewis Krauskopf
NEW YORK, Nov 17 (Reuters) - U.S. shares ceded gains on
Tuesday after a soccer match in Germany was called off over
fears of a planned bomb attack, while prices of longer-dated
U.S. Treasuries rose on demand for low-risk government bonds.
Oil prices fell sharply as worries returned about a glut of
supplies, which also undercut equities. The U.S. dollar rose to
a seven-month high as inflation data bolstered expectations of
an impending interest rate hike.
Just days after the deadly attacks in Paris, a soccer game
between Germany and the Netherlands in Hanover, Germany was
called off less than two hours before its start due to what
authorities called the credible threat of an attack with
explosives. urn:newsml:reuters.com:*:nL8N13C4PG
"These situations create uncertainty and in uncertain times
everyone goes to cash," said Mohannad Aama, managing director at
Beam Capital Management LLC in New York.
The Dow Jones industrial average .DJI rose 6.49 points, or
0.04 percent, to 17,489.5, the S&P 500 .SPX lost 2.75 points,
or 0.13 percent, to 2,050.44 and the Nasdaq Composite .IXIC
added 1.40 points, or 0.03 percent, to 4,986.02.
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 .
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 0.6
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.
urn:newsml:reuters.com:*:nL8N13C2C9
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 0.2 percent, although
weaker-than-expected industrial output data pared the
greenback's gains later in the session. The euro EUR= lost 0.4
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 rose 1/32 in price
with a yield of 2.2693 percent. Prices on the 30-year bond
US30YT=RR rose 11/32 with a yield of 3.0543 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 1.2 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