GLOBAL MARKETS-Stocks, euro fall on wrangling over Greek aid

* Euro slumps on euro zone discord over Greek aid

* World stocks retreat with European banks under pressure

* U.S., German government bonds rebound after sell-off

* Oil falls on stronger dollar, U.S. gasoline stocks (Updates market activity, adds quote, byline)

By Richard Leong

NEW YORK, June 15 (Reuters) - Stocks and the euro fell on Wednesday and safe-haven government bonds rose as divisions between euro zone officials over a new aid plan for debt-heavy Greece curbed demand for growth-driven investments.

In the United States, weaker-than-expected manufacturing and housing data renewed worries over slowing growth, while a report signaling the biggest rise in core consumer prices in nearly three years caused some investors to reconsider how long inflation pressure will remain tame in the absence of policy tightening from the Federal Reserve. For more, see [ID:nN15281293]

"A resolution has to be met at some point in time," said John McCarthy, director of currency trading at ING Capital Markets in New York. "Greece can't continue along its current path, we all know that. The question is, 'What is the resolution?'"

Anxiety over the Greek debt crisis and disappointing U.S. data put downward pressure on global equity markets, bogged down by bank shares. Moody's Investors Service said it may downgrade the credit ratings of French banks BNP Paribas, Credit Agricole and Societe Generale to on review for a possible downgrade, citing the French banks' holdings of Greek public and private debt. For more, see [ID:nL3E7HF0A4]

The MSCI world stock index <.MIWD00000PUS> was down 0.7 percent after posting its biggest single-day percentage rise on Tuesday on less-grim Chinese and U.S. economic data.

Wall Street gave back some of Tuesday's gains.

The Dow Jones industrial average <.DJI> was down 68.87 points, or 0.57 percent, at 12,007.24. The Standard & Poor's 500 Index <.SPX> was down 7.78 points, or 0.60 percent, at 1,280.09. The Nasdaq Composite Index <.IXIC> was down 15.41 points, or 0.58 percent, at 2,663.31.

Top European shares <.FTEU3> fell 1.0 percent, while Tokyo's Nikkei <.N225> ended 0.3 percent lower following Tuesday's rally in New York.

Striking Greeks raged against a new wave of austerity after euro zone finance ministers failed to agree on how to make private creditors contribute to a second bailout for their indebted country. This shifted the onus onto the leaders of Germany and France to forge a deal later this week.

Selling pressure on the euro also increased after Moody's news on French banks.

The euro slid 1 percent against the dollar, sending it close to a recent low of $1.4285 hit on trading platform EBS. It was last down 0.9 percent at $1.42876, breaking below its 21-day moving average, with traders citing selling from leveraged and real money accounts.

Investor jitters rekindled a flight into low-risk U.S. and German government bonds.

Improved demand for bonds lowered benchmark U.S. 10-year Treasury yields to 3.06 percent, down 4 basis points on the day. German Bund futures were up 0.4 percent at 125.87.

A stronger dollar fueled selling in oil.

July Brent crude futures were down $1.64 at $118.52 a barrel, while the spot NYMEX oil contract was down 0.2 percent at $99.27.

Spot bullion prices were at $1,530.25 an ounce, up from $1,523.25 on Tuesday, as buying on euro zone sovereign debt concern overcame earlier selling from a stronger dollar. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Graphics: Bank exposure to euro zone periphery debt: http://r.reuters.com/max89r Euro zone debt struggle: http://r.reuters.com/hyb65p Return on Euro zone bonds http://r.reuters.com/fet99r S&P sovereign credit ratings vs. CDS prices: http://r.reuters.com/vyc22s ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by Nick Olivari and Rodrigo Campos in New York; Emelia Sithole-Matarise, Jessica Mortimer, Naomi Tajitsu, Christopher Johnson and Amanda Cooper in London; Editing by Dan Grebler)