* S&P 500 lowest since March; Peru's market tumbles
* Euro dips on Greece worries; rate hike hopes limit drop
* Oil prices fall ahead of OPEC meeting on demand concerns (Updates prices, adds comment, details)
By Wanfeng Zhou
NEW YORK, June 6 (Reuters) - Major stock markets fell for a fourth session on Monday on concerns about slowing global economic growth, while the euro slipped after a German official suggested a second Greek bailout was not yet certain.
Losses in U.S. and European shares paled in comparison to a more than 10-percent tumble in Peru's stock market after a presidential election victory by left-wing former army commander Ollanta Humala stoked fears of a roll-back in free-market reforms.
Crude oil prices were lower ahead of an OPEC meeting later this week, weighed by growing signs that high prices are destroying energy demand in the West.
On Wall Street, the benchmark S&P 500 index hit a more than two-month low after last week's weak U.S. labor and manufacturing data pushed stocks to five weeks of losses. The index is down more than 5 percent from its May high, but still up nearly 3.0 percent for the year.
"This seems like a continuation of sentiment from last week, where investors are coming to the realization that the economy is not growing as strongly as once anticipated," said Wasif Latif, vice president of equity investments at USAA Investment Management in San Antonio, Texas.
"The weak economic data throughout last week corroborated those suspicions and because of that you are seeing the continuation (of the equities slide)."
The Dow Jones industrial average <.DJI> was down 20.13 points, or 0.17 percent, at 12,131.89. The Standard & Poor's 500 Index <.SPX> was down 6.28 points, or 0.48 percent, at 1,293.88. The Nasdaq Composite Index <.IXIC> was down 8.67 points, or 0.32 percent, at 2,724.16.
In Europe, the FTSEurofirst 300 <.FTEU3> fell 0.6 percent to 1,104.97, an 11-week closing low.
World stocks, as measured by the MSCI world equity index <.MIWD00000PUS>, fell 0.4 percent. The Thomson Reuters global stock index <.TRXFLDGLPU> dropped 0.6 percent. Emerging market stocks <.MSCIEF> shed 0.4 percent.
Investors dumped Peru's financial assets, prompting freezes in stock trading and a currency intervention by the central bank as investors loudly doubted left-wing Ollanta Humala's vows to manage the economy prudently.
Peru's stock market <.IGRA> sank more than 12 percent,
while the sol currency
Joyce Chang, global head of emerging markets research at JPMorgan, said the "market has probably overreacted a bit" and recommends investors look for buy opportunities in Peruvian debt.
"I think that there's probably going to be at this stage of the game more positive than negative surprises. We would frankly look for opportunities to add exposure," Chang told the Reuters 2011 Investment Outlook Summit in New York.
GREEK BAILOUT NOT CERTAIN
The euro last traded 0.2 percent lower at $1.4599. It
dipped below $1.46
Policymakers have inched toward a new bailout package that German media said could exceed 100 billion euros, and that helped the euro hit a one-month high of $1.4658.
Traders said the market assumes a deal will be reached to allow Greece more time to repay its debt and that markets also were already bracing for European Central Bank President Jean-Claude Trichet on Thursday to signal plans to raise euro zone interest rates in July.
"The focus will turn toward interest rate differentials, and with the Federal Reserve unlikely to do anything this year, an ECB rate hike will pull money toward the euro and other currencies," said Boris Schlossberg, head of currency research at GFT in New York.
Brent crude oil
At an OPEC meeting this week, the cartel could lift its oil production targets, although leading member Saudi Arabia is likely to face tough opposition in its push to raise supply from hawks Venezuela and Iran.
Concerns about the economy fueled fresh gains for
safe-haven gold, with spot gold