* Wall Street, global equities slip on China's bank moves
* Commodity currencies fall on banking reserve requirement
* Oil slips below $81 on milder weather forecast, China
* Bonds gain in flight to safety buying as stocks retreat (Updates with close of U.S. markets)
By Herbert Lash
NEW YORK, Jan 12 (Reuters) - Commodity prices slid and stocks slumped around the world on Tuesday after China said it would raise banks' reserve requirements in a move that could damp a recovery from the worst global recession in decades.
A weak start to the corporate earnings season in the United
States and a profit warning from Chevron Corp
European equities retreated from a 15-month high to close
lower while U.S. stocks fell, snapping a six-day winning
streak, after aluminum maker Alcoa Inc
Asian stocks also fell, a day after hitting a 17-month high, on investor jitters that tighter Chinese monetary policy could slow economic expansion in China and cut the country's strong worldwide demand for commodities and other goods.
The People's Bank of China surprised markets with a statement that next week it would raise the reserve requirement ratio in a move to stem the threat of inflation. For details see: [ID:nBJC002463].
"China may be trying to limit its growth rate," said Gene McGillian of Tradition Energy in Stamford, Connecticut.
"Asian oil demand has been growing fast, but we haven't really seen demand growth kick in in the United States or Europe."
Oil fell by more than 2 percent from near a 15-month high, helped by the easing of cold weather in the United States that had been supporting U.S. fuel demand. [ID:nSGE60B07K]
The sudden central bank move in China came earlier than investors had expected and appeared prompted by concerns that a renewed surge in bank lending was flooding the economy with cash, risking overheating and a surge in inflation.
Concerns in the United States that banks and other financial services firms could face government fees in a bid to recoup losses tied to industry bailouts sent the Nasdaq and S&P 500 stock indexes down by about 1 percent.
A senior U.S. official confirmed President Barack Obama is considering a levy as part of the fiscal 2011 budget he will unveil in February. Media reports said the fee could raise as much as $120 billion.
The Dow Jones industrial average <.DJI> closed down 36.73 points, or 0.34 percent, at 10,627.26. The Standard & Poor's 500 Index <.SPX> fell 10.76 points, or 0.94 percent, at 1,136.22. The Nasdaq Composite Index <.IXIC> slid 30.10 points, or 1.30 percent, at 2,282.31.
Commodity-linked currencies, including the Australian, New Zealand and Canadian dollars, hit session lows against the U.S. dollar, following a sell-off in gold prices. They also tumbled against the yen. [ID:nN12193759]
"The Chinese announcement has the potential to be this week's most important currency market driver and the market reaction over the next 24-48 hours bears close watching," said Nick Bennenbroek, head of currency strategy at Wells Fargo Bank in New York in a note to clients.
The dollar was down against a basket of major currencies, with the U.S. Dollar Index <.DXY> down 0.02 percent at 76.988.
The euro
Industrial metals extended session losses after the close. Copper sank to a near two-week low; zinc and nickel plunged to their lowest in about three weeks and lead sank to its lowest since Dec. 30 in the late sell-off. [ID:nLDE60B0X4]
The 19-commodity Reuters-Jefferies CRB index <.CRB> fell more than 2 percent to its lowest since Jan. 5, the first trading day of 2010, before recovering to be off 1.68 percent.
U.S. crude for February delivery
U.S. February gold futures
The U.S. Treasury debt market rallied as a Wall Street sell-off revived a safety bid for government debt, allaying some concerns over appetite at this week's government bond auctions. [ID:nN12202470]
The developments in China and concerns about fiscal problems in Greece reinforced the appetite for government debt, said John Canavan, analyst at Stone & McCarthy Research Associates in Princeton, New Jersey.
The benchmark 10-year U.S. Treasury note