GLOBAL MARKETS-Stocks, dollar fall on weak US data, gold jumps

* Stocks drop, dollar weakens on anemic US economic data

* Gold touches new record high on flight-to-safety bid

* US Treasuries rise on Fed stimulus hope

(Updates with open of US markets, changes byline, dateline, previous: LONDON)

By Manuela Badawy

NEW YORK, Sept 28 (Reuters) - World stocks fell and the dollar weakened broadly on Tuesday as anemic U.S. economic data dampened investors' confidence in the tepid economic recovery.

U.S. government debt rose and gold prices reached a new record high above $1,300 an ounce after U.S. data showed consumer confidence fell in September to its lowest levels since February, driven by deteriorating labor market and business conditions.

The Conference Board's index of consumer attitudes fell to 48.5 in September from a revised 53.2 in August, pressured by a weak labor market and business conditions. For details, see [ID:nN28171795]

U.S. home prices also dipped in July, hovering above multi-year lows according a Standard & Poor's/Case-Shiller home price report. For details see [ID:nN28171424]

The weak U.S. dollar and low bond yields reflect falling investor confidence in the strength of the recovery, leading to safe haven buying of other assets such as gold, analysts said.

Gold rose above $1,300 an ounce to reach a new record, and Silver was close to Monday's three-decade high

At its policy meeting last week, the Federal Reserve said it was open to pumping more money into the economy to bolster the sluggish U.S. recovery given high unemployment and uncomfortably low inflation.

"With unemployment at a 26 year high, confidence among consumers remain weak and this decline in sentiment will give the Fed a stronger reason to increase stimulus in November," said Kathy Lien, director of currency research at GFT in New York.

The Dow Jones industrial average <.DJI> was down 26.41 points, or 0.24 percent, at 10,785.63. The Standard & Poor's 500 Index <.SPX> was down 4.55 points, or 0.40 percent, at 1,137.61. The Nasdaq Composite Index <.IXIC> was down 15.01 points, or 0.63 percent, at 2,354.76.

MSCI world equity index <.MIWD00000PUS> fell 0.18 percent and the Thomson Reuters global stock index <.TRXFLDGLPU> lost 0.10 percent.

The FTSEurofirst 300 index <.FTEU3> fell 0.51 percent, while Emerging stocks <.MSCIEF> fell 0.15 percent.

BOE MAY EASE FURTHER

Earlier the euro advanced against the U.S. dollar and sterling after Bank of England policymaker Adam Posen said the British central bank should start pumping more money into the U.K. economy in order to prevent the country falling into the same kind of slump Japan did in the 1990s. For more see [ID:nLAC005768].

The euro was up 0.66 percent at $1.3543 from a previous session close of $1.3454. Against sterling, the euro rose to around 85.59 pence from around 84.92 pence .

Sterling was down 0.12 percent at $1.58 dollars as investors bet that a resumption of the Bank of England's 200 billion pounds quantitative easing program was now more likely, especially as the U.S. Federal Reserve has also signaled it may need to ease further.

Against the Japanese yen, the dollar was down 0.44 percent at 83.89 from a previous session close of 84.260.

The prices of U.S. Treasury debt rose as the latest data showing another drop in home prices and weaker consumer confidence added to expectations for more Federal Reserve support, pushing yields lower and extending Monday's rally.

The benchmark 10-year U.S. Treasury note was up 13/32, with the yield at 2.4831 percent. The 2-year U.S. Treasury note was down 1/32, with the yield at 0.4339 percent. The 30-year U.S. Treasury bond was up 28/32, with the yield at 3.6756 percent.

Treasury debt prices rose in spite of preparations for a fresh auction of five-year notes on Tuesday and as traders recalculated their previously lofty expectations for further Federal Reserve purchases of Treasuries.