GLOBAL MARKETS-Shares extend losses on fears over global growth, banks

* Stock indexes extend decline to third straight day

* Index of top European shares hits lowest since Sept '13

* U.S (Other OTC: UBGXF - news) . 10-yr Treasury yields touch 1-yr lows

* U.S. crude price hits nearly three-week low (Updates prices to afternoon trading)

By Sam Forgione

NEW YORK, Feb 9 (Reuters) - Stock indexes worldwide tumbled for the third straight session on Tuesday on fears of slowing global growth, with particular concern around the health of the banking sector, while oil prices plunged to multi-week lows.

The European banking index ended 4 percent lower after sinking 5.6 percent on Monday on fears of worsening bank profitability and capital strength from sustained low interest rates.

Deutsche Bank (Other OTC: DBAGF - news) shares fell 4.3 percent after slumping 9.5 percent on Monday on concerns about its ability to maintain bond payments. Shares (Berlin: DI6.BE - news) of U.S. banks also stumbled, with the S&P financial index last down 0.9 percent.

Beaten-down U.S. energy shares also fell further, with the S&P energy index last down 3.6 percent. The decline came after U.S. stocks had lost more than 1 percent Monday.

"We're starting to feel some of the knock on effects from energy and distress in those markets," said Steven Baffico, chief executive officer at Four Wood Capital Partners in New (KOSDAQ: 160550.KQ - news) York.

"Over the last couple of days, that's spread into the financial system. It's difficult to find a lot of momentum to the upside for any sustained period of time," he said.

The FTSEurofirst 300 index slumped but was off its lowest level since Sept. 2013, which was touched earlier in the session.

MSCI's all-country world equity index, which tracks shares in 45 nations, was last down 3.02 points, or 0.84 percent, at 357.79.

The Dow Jones industrial average was last down 24.07 points, or 0.15 percent, at 16,002.98. The S&P 500 was down 4.01 points, or 0.22 percent, at 1,849.43. The Nasdaq Composite was down 19.34 points, or 0.45 percent, at 4,264.42.

The FTSEurofirst 300 index settled down 1.6 percent at 1,219.82.

Oil prices sank, with benchmark Brent crude prices falling to their lowest in two weeks and U.S. crude prices falling below $28 a barrel to their lowest in just under three weeks. Forecasts for more growth in U.S. crude stockpiles and weak demand forecasts contributed to the plunge.

Brent crude was last down $2.12, or 6.45 percent, at $30.76 a barrel. U.S. crude was last down $1.30, or 4.38 percent, at $28.39 per barrel.

Yields on benchmark 10-year Treasury notes, known for their relative safety, extended Monday's declines to hit 1.682 percent, their lowest in a year. The notes were last up 3/32 in price to yield 1.7226, from a yield of 1.735 percent late Monday.

Gold (Other OTC: GDCWF - news) , another safe-haven asset, rose in price and was just below the 7 1/2-month high struck the previous day.

The U.S. dollar extended Monday's drop against the safe-haven Japanese yen, hitting its lowest against the yen since Nov. 2014 of 114.205 yen. The concerns also caused the Mexican peso to hit an all-time low against the dollar.

"Markets were very risk-averse out of the gate this week, and it's continued today," said Richard Franulovich, senior currency strategist at Westpac Banking Corp (Other OTC: WEBNF - news) in New York.

Spot gold prices were last up $4.75, or 0.40 percent, at $1,195.51 an ounce. (Additional reporting by Dion Rabouin, Tariro Mzezewa in New York and Abhiram Nandakumar in Bengaluru; Editing by Nick Zieminski)