GLOBAL MARKETS-Stocks slip, dollar gains after Bernanke

* Global stock index sags, Nasdaq jumps on Google results

* US dollar strengthens after Bernanke signals more easing

* Oil falls sub $82, gold slips after Bernanke's comments

* Bond market sees inflation after low CPI, Bernanke hints

(Adds close of U.S. markets)

By Herbert Lash

NEW YORK, Oct 15 (Reuters) - World stocks slid and the dollar rebounded on Friday as a growing U.S. foreclosure crisis undermined an initial boost after U.S. Federal Reserve Chairman Ben Bernanke indicated more monetary stimulus was on the way.

U.S. Treasury prices fell and yields rose on the view that Bernanke aims to boost asset prices by creating inflation through a second round of so-called quantitative easing.

Bernanke said there was a case for further monetary easing, given high unemployment and low inflation. But despite his most explicit signal yet, he offered no details on the Fed's next move. For details see: [ID:nN15187998]

The dollar rose from more than an eight-month low versus the euro as traders said the currency's recent declines went too far, too fast even as a sustained rebound seems unlikely. [ID:nN15201898

The euro traded at $1.3968 after earlier climbing as high as $1.4161, its strongest level since Jan. 26.

The Obama administration backed away from a showdown with Beijing over the value of China's currency that would have caused new frictions between the world's only superpower and its largest creditor. [ID:nN14134313]

The Treasury Department delayed a much-anticipated decision on whether to label China a currency manipulator until after the U.S. congressional elections on Nov. 2 and a Group of 20 leaders summit in South Korea on Nov. 11.

The dollar is likely to stay on the defensive until the end of a two-day Fed meeting on Nov. 3. The dollar's downside may be limited because much of the impact from any Fed easing has been priced in and bearish sentiment is too strong, analysts said.

"The dollar is somewhat oversold against a number of its key counterparts, but I don't really see much scope for sustained dollar gains ahead of the Fed meeting in November," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange Inc in Washington.

Global stocks slipped 0.3 percent as measured by MSCI's all-country world equity index <.MIWD00000PUS> and its emerging markets index <.MSCIEF> slid 0.5 percent.

European shares closed flat, but the Nasdaq Composite Index rose 1.4 percent after Google Inc reported a blowout quarter late on Thursday. More than a dozen brokerages raised their price targets on Google's stock as it surged 11.2 percent. MIXED BAG ON WALL STREET

The S&P 500 edged higher on technology shares but the Dow was pulled lower as U.S. financial stocks slid on concerns the growing foreclosure crisis could hurt corporate profits, spread to credit markets and crimp the overall economy. [ID:nN15201540]

"The real downside potential of this issue is unknowable. It could be a multibillion-dollar problem," said Brian Battle, vice president of trading at the Chicago-based Performance Trust Capital Partners. "This could end up being a problem with the financial system like we saw in 2008."

The KBW bank index <.BKX> dropped 2.4 percent in its third-straight decline.

The Dow Jones industrial average <.DJI> closed down 31.79 points, or 0.29 percent, at 11,062.78. The Standard & Poor's 500 Index <.SPX> rose 2.38 points, or 0.20 percent, at 1,176.19. The Nasdaq Composite Index <.IXIC> added 33.39 points, or 1.37 percent, at 2,468.77.

Sales at U.S. retailers rose a stronger-than-expected 0.6 percent in September, lifted by big-ticket items. Manufacturing activity in New York state jumped in October, the New York Fed's "Empire State" business index showed.

But U.S. inflation unexpectedly slowed in September as a 0.8 percent rise in the core Consumer Price Index, which excludes volatile food and energy prices, through the 12 months ended in September marked the smallest increase since 1961.

The slowing pace of inflation forebodes potential deflation, which is a major cause of concern for Bernanke and the Fed. [ID:nN15191048]

"Retail sales and the Empire State index were strong, suggesting the economy is indeed improving. But inflation remains low and troubling," said Hugh Johnson, chief investment officer at Hugh Johnson Advisors in Albany, New York.

OIL, GOLD AND BOND PRICES FALL

Oil prices slid almost 2 percent and gold snapped a two-day rally, both in volatile trading, after bullion earlier jumped to within a few dollars of the previous day's record high. [ID:nSGE69E07A] [ID:nLDE69E0S8]

"The question is, for how much longer the market is prepared to run just on the quantitative easing story. I think the market at these levels wants to see the facts before committing additional capital to the upside," said Saxo Bank senior manager Ole Hansen.

Crude for November delivery settled $1.44 lower, or 1.74 percent, at $81.25 a barrel.

U.S. gold futures for December delivery settled down $5.60 at $1,372 an ounce. Spot gold prices fell $11.80 to $1,368.50.

A stronger dollar makes commodities, like oil, more expensive for buyers holding alternative currencies.

The dollar was up against a basket of major currencies, with the U.S. Dollar Index <.DXY> up 0.45 percent at 76.99.

Against the Japanese yen, the dollar was down 0.02 percent at 81.440.

The benchmark 10-year U.S. Treasury note was down 19/32 in price to yield 2.57 percent. (Reporting by Chuck Mikolajczak, Wanfeng Zhou, Gene Ramos,Frank Tang and Chris Reese in New York; Writing by Herbert Lash; Editing by Andrew Hay)