GLOBAL MARKETS-Stocks, euro slide as hopes dim on Europe crisis

* French-German meeting fails to calm financial markets

* Global stocks slip as German GDP growth disappoints

* U.S. bonds, gold gain as data renews growth fears

* Euro slides from previous day's three-week high (Updates prices)

By Herbert Lash

NEW YORK, Aug 16 (Reuters) - Global stocks and the euro slid on Tuesday after the leaders of France and Germany failed to live up to market expectations for a solution to Europe's debt crisis and weak German growth data renewed worries about the world economic outlook.

President Nicolas Sarkozy of France and German Chancellor Angela Merkel agreed to float proposals in September for a tax on financial transactions and to push for closer joint governance of the euro zone's economic policy. For details see: [ID:nLDE77F0SN]

But the two leaders, meeting in Paris, said there was no need to increase the size of the euro zone rescue fund and that they saw no immediate need for common euro zone bonds. [ID:nL5E7JG24F]

"Investors were looking for some big picture solution to the euro zone debt crisis. Looking at these headlines, I don't think much has been achieved," said Andrew Wilkinson, senior market analyst at Interactive Brokers in Greenwich, Connecticut.

German Bund futures wiped out earlier losses and rose, and prices of U.S. Treasuries advanced further. The euro briefly recouped losses against the dollar after Sarkozy said he and Merkel are determined to defend the euro.

The euro was down 0.27 percent. The benchmark 10-year U.S. Treasury note rose 17/32 in price to yield at 2.25 percent, down from 2.30 percent earlier in the session.

Weak economic growth in Germany had clouded the global economic outlook before the Franco-German meeting ended. Germany reported that growth in its gross domestic product slowed to a mere 0.1 percent between April and June, the weakest quarterly rate since 2009.

Investors favored bonds over stocks as data from the euro zone fueled concerns about a Europe already weakened by a fiscal crisis. [ID:nL5E7JG0N0]

"Overall there are a lot of questions marks coming out of this summit," said Marc Chandler, global head of currency strategy sy Brown Brothers Harriman in New York, of the Sarkozy-Merkel meeting. "This does not seem to be a game-changer or a show-stopper."

Risky assets such as stocks and commodities have been hit hard in recent weeks. Bank exposure to Greek and Italian debt has raised short-term borrowing costs for European institutions and the cost of insuring their debt against default.

U.S. stocks fell after three days of gains and global stocks, as measured by MSCI's all-world equity index <.MIWD00000PUS> were off 0.9 percent.

The Dow Jones industrial average <.DJI> was down 164.08 points, or 1.43 percent, at 11,318.82. The Standard & Poor's 500 Index <.SPX> was down 20.91 points, or 1.74 percent, at 1,183.58. The Nasdaq Composite Index <.IXIC> was down 54.96 points, or 2.15 percent, at 2,500.24.

Wall Street extended losses after news of the Sarkozy-Merkel meeting.

Earlier, Wall Street had pared some losses after a better-than-forecast U.S. industrial output report for July and Fitch's affirmation of its top credit rating for the United States with a stable outlook.

The dollar was up against a basket of major currencies, with the U.S. Dollar Index <.DXY> up 0.27 percent at 74.035. The euro was down 0.37 percent at $1.4391.

Oil prices extended losses after the meeting between Sarkozy and Merkel failed to calm concerns about the euro zone dcebt crisis. [ID:nL5E7JG0UG]

North Sea Brent crude fell 0.65 percent to $109.20 a barrel, while U.S. light sweet crude oil fell $1.38 to $86.50.

Spot gold prices rose $16.26 to $1,781.20 an ounce. (Reporting by Gertrude Chavez-Dreyfuss, Rodrigo Campos and Karen Brettell in New York; Brian Gorman, Zaida Espana, Jan Harvey and Harpreet Bhal in London; Writing by Herbert Lash; Editing by Leslie Adler)