* MSCI world equity index down 0.25 percent
* Euro hits 2-1/2 month low on banking concerns
* Oil down; bonds also weaker
By Natsuko Waki
LONDON, Dec 15 (Reuters) - The euro hit a 2-1/2 month low against a broadly firmer dollar on Tuesday while world stocks slipped as concerns grew about the sustainability of the euro zone's recovery and the fiscal health of Greece.
The closely-watched ZEW survey showed German analyst and investor sentiment fell in December for a third consecutive month, reaching its lowest level since July and pointing to a slowdown in the pace of recovery in Europe's largest economy.
Concerns about Austria's banking sector lingered a day after the country took over Hypo Group Alpe Adria on Monday to avoid a collapse.
Worries about the fiscal health of Greece weighed on local banks and pushed the Greek bond yield higher relative to the safer German counterpart after Prime Minister George Papandreou's spending cut plans announced late on Monday failed to convince investors.
"Problems in Greece continue, and the news about the Austrian bank yesterday hasn't helped either," said Ian Stannard, currency strategist at BNP Paribas.
"Overall, downward pressure on the euro continues, and the weak ZEW survey is also negative."
MSCI world equity index fell 0.5 percent while the FTSEurofirst 300 index lost a third percent.
U.S. stock futures pointed were down around 0.2 percent, pointing to a weaker open on Wall Street.
The dollar rose 0.7 percent against a basket of major currencies to its highest in six weeks.
EURO ZONE WORRIES
The euro fell as low as $1.4527, down three quarters of a percent.
The single currency initially fell after an Austrian newspaper reported the country's central bank and its financial market regulator have put Oesterreichische Volksbanken, the country's top cooperative bank, on a watchlist
The bank's spokesman later said the report was inaccurate, while Austria's central bank said Volksbanken stayed above legal capital requirements in a severe stress test, adding that there was no watchlist.
Nonetheless, the newspaper report, which did not cite sources, fuelled concerns that European banks are in a fragile state even after Monday's surprise announcement that Abu Dhabi would provide Dubai $10 billion in bailout money eased concerns about European banks which are heavily exposed to Dubai Inc.
And concerns about the Greek fiscal deficit lingered. The 10-year Greek/German government bond yield spread widened to 257 basis points from 231 on Monday as investors demanded higher premium to hold Greek debt.
"There is still a lot of pressure on the government to take specific measures, especially after Ireland was perceived to have taken drastic steps. So the risk is for spreads to widen again," said Michael Leister, strategist at West LB in Dusseldorf.
Emerging stocks fell 0.5 percent.
U.S. crude oil rose 0.2 percent to $69.63.
Bund futures were steady on the day. (Additional reporting by Naomi Tajitsu and Tamawa Desai)