* Global stocks slip after 5-day run up
* Europe slightly lower, Japan down 0.8 percent, China 2.6 percent
* Wall Street set for modest rise, dollar flat to weaker
* Little impact from Bernanke reappointment
By Jeremy Gaunt, European Investment Correspondent
LONDON, Aug 25 (Reuters) - World stocks fell back after five days of gains on Tuesday and the dollar firmed as investors waited for fresh clues on whether the global economic recovery was truly picking up steam.
Wall Street looked set for a modest start, however.
Emerging markets led declines. China's volatile Shanghai Composite Index fell 2.6 percent but investors were not likely to be overly concerned given its 7.5 percent rise over the three prior sessions.
Globally, the MSCI all-country world stock index was down 0.2 percent. The index hit a year high on Monday, however, and is up more than 20 percent for the year-to-date.
Emerging market shares lost 0.5 percent but they are up more than 50 percent in 2009.
"We continue to believe that we are emerging from the recession and are entering a period of positive, but sub par, growth levels," Bob Doll, BlackRock's chief investment officer for global equities, said in his weekly note.
European shares fell back from 10-month closing highs. The FTSEurofirst 300 index of top European shares was down 0.2 percent
Earlier, Japan's Nikkei 225 closed 0.8 percent lower.
News that U.S. President Barak Obama was to reappoint Federal Reserve Chairman Ben Bernanke for a second term had little impact on markets. "It should be positive for markets such as the stock and bond markets in the sense that an element of uncertainty has been removed," said Takahide Nagasaki, chief FX strategist at Daiwa Securities SMBC.
RISK OFF
The yen rose, gaining in particular against the euro and sterling as the retreat in European shares curbed demand for currencies considered to be high-risk.
Trading was thin as many market participants were away on summer holidays and analysts said currency movements were largely being dictated by other asset markets, making them vulnerable to a pullback in stocks and commodities.
"Some capital markets still look a bit overpriced relative to the hard economic data, so some of the correction we've seen in the pro-cyclicals is to be expected," said Phyllis Papadavid, currency strategist at Societe Generale in London.
Euro zone government bond prices were higher to flat. Two-year bond yields were unchanged at 1.314 percent and 10-year yields slipped 3 basis points to 3.282 percent. (Additional reporting by Charlotte Cooper and Naomi Tajitsu, editing by Mike Peacock) (To read Reuters Global Investing Blog click on http://blogs.reuters.com/globalinvesting; for the MacroScope Blog click on http://blogs.reuters.com/macroscope; for Hedge Hub click on http://blogs.reuters.com/hedgehub)