GLOBAL MARKETS-Equities and dollar slump as global growth woes multiply

* Wall St declines top 1.5 percent

* Fed minutes show worry over global economy, strong dollar

* Treasuries yields touch recent record lows

* Brent oil under $91 a barrel

(Adds steepening Wall Street decline, latest prices)

By Michael Connor

NEW YORK, Oct 9 (Reuters) - Wall Street slumped on Thursday

as anxieties about global economic growth smothered a

short-lived, Federal Reserve-sparked rally in equity markets

around the world.

The dollar gave up some gains from a remarkable three-month

run-up and U.S. benchmark bond yields touched one-year lows as

investors shrugged off encouraging U.S. jobless data.

Oil prices, deeply affected by the dollar's value, tumbled to

near a two-year low.

Energy stocks were big losers on Wall Street, where leading

indices were off sharply at mid session. The MSCI index of world

stocks was off 0.9 percent at 407.53.

The Dow Jones industrial average fell 311.82 points,

or 1.83 percent, to 16,682.4, the S&P 500 lost 36.73

points, or 1.87 percent, to 1,932.16 and the Nasdaq Composite

dropped 83.10 points, or 1.86 percent, to 4,385.49.

The S&P Energy Index was down 3.5 percent on

Thursday, a day after investors gave the U.S. stock market its

best day of the year as Fed meeting minutes suggested the

central bank would not rush interest-rate hikes.

European shares hit a fresh two-month low as German exports

fell 5.8 percent in August, the worst decline since January

2009. The data from Europe's biggest economy fed anxieties about

recession in the euro zone.

Brent oil fell below $90 a barrel. Prices have been hurt by

a supply glut and concerns about global economic growth and are

now down 20 percent from June.

Brent for November delivery was last down $1.16 at

$90.22. U.S. November crude lost $1.48 to $85.83.

"Supply is strong, inventories are high and demand in Europe

is terrible," said Michael Hewson, head analyst at CMC Markets.

The dollar dropped to a three-week low against the yen as

investors took profit and pared back bullish bets on the

greenback. The dollar was last off 0.20 percent to 107.92 yen.

The Fed minutes showed officials were concerned about the

impact of a stronger dollar on the profits of companies with an

international presence, and about lackluster global growth, as

they sought an eventual exit from record low rates.

The Fed was sending a warning shot to dollar bulls, who had

lifted the greenback each week for three months, according to

Andrew Wilkinson, chief market analyst at Interactive Brokers (NasdaqGS: IBKR - news)

LLC in Greenwich, Connecticut.

"The Fed notes that the stronger dollar, which could

automatically depress demand for U.S. exports, is already

depressing commodity prices that in turn is likely to contain

inflationary pressures," Wilkinson told clients.

Spot gold rose to its highest since Sept. 23 at

$1,233.20 an ounce early on Thursday and was trading up 0.3

percent at $1,224.86.

U.S. long-dated and benchmark Treasuries yields hit their

lowest levels in over a year.

Yields on 30-year Treasury bonds hit 3.029 percent, their

lowest since May 2013, while benchmark 10-year yields hit 2.279

percent, lowest since June 2013.

Benchmark 10-year U.S. Treasury notes were last

off 1/32 in price to yield 2.33 percent. U.S. 30-year Treasury

bonds were last off 4/32 to yield 3.068 percent.

(Additional reporting by Gertrude Chavez-Dreyfuss, Sam

Forgione, Herbert Lash and Ryan Vlastelica in New York, and Marc

Jones in London; Editing by Nick Zieminski)