GLOBAL MARKETS-U.S. stocks cede gains after German bomb report; oil slides

* Dollar rises as inflation data backs rate hike

* European shares rise after strong corporate reports

* Euro hits seven-month low vs greenback

* Copper struggles at 6-year lows on China demand woes (Updates to late afternoon)

By Lewis Krauskopf

NEW YORK, Nov 17 (Reuters) - U.S (Other OTC: UBGXF - news) . shares gave up gains on Tuesday after a soccer game in Germany was called off over concerns of a bomb attack, while U.S. longer-dated Treasuries prices held increases as traders cited a burst of safe-haven bids for bonds.

Oil prices fell sharply as concerns returned about a glut of supplies, which also undercut equities. The U.S. dollar rose as firming inflation backed expectations of an impending interest rate hike.

A friendly soccer game between Germany and the Netherlands in Hanover, Germany was called off less than two hours before its start for fear of a bomb attack, German police said.

Earlier in the day, U.S. stocks had registered strong increases, fueled by better-than-expected results from retailers Home Depot (Swiss: HD.SW - news) and Wal-Mart Stores.

The Dow Jones industrial average fell 20.51 points, or 0.12 percent, to 17,462.5, the S&P 500 lost 5.82 points, or 0.28 percent, to 2,047.37 and the Nasdaq Composite dropped 5.16 points, or 0.1 percent, to 4,979.46.

In Europe, the FTSEurofirst 300 index surged 2.6 percent, as Germany's United Internet (Other OTC: UDIRF - news) and Dutch-based Randstad, the world's second-biggest staffing company, posted encouraging results.

MSCI (NYSE: MSCI - news) 's all-country world index rose 0.5 percent.

"Overall, there is a macro tailwind for European equities," said Lorne Baring, managing director of B Capital Wealth Management. "The monetary policy of the (European Central Bank) will continue to weaken the euro versus other major currencies."

Greek stocks surged and bond yields hit their lowest in more than a year after the country's finance minister said Athens had reached an agreement with its lenders on financial reforms.

Data on Tuesday showed U.S. consumer prices increased in October after two straight months of declines, a sign of firming inflation that supported expectations the Federal Reserve will raise interest rates next month.

The dollar index, which measures the dollar against a basket of six major currencies, rose 0.15 percent. The euro lost 0.3 percent against the dollar, hitting a 7-month low.

"I think the market has the mindset that there is almost nothing at this stage of the game that is going to dissuade the Fed from going in December," said Lane Newman, director of foreign exchange at ING Capital Markets in New York.

Benchmark 10-year Treasuries were up 4/32 in price with a yield of 2.2553 percent. Prices on the 30-year bond rose 18/32 with a yield of 3.0431 percent.

"There are a lot of reasons to be nervous and for a flight-to-safety (to bonds)," said Lou Brien, market analyst at DRW Trading in Chicago.

Oil prices slumped as the global oversupply in crude and petroleum products returned to focus. Brent crude futures settled down 99 cents at $43.57 a barrel, touching a session low at $43.50. U.S. crude futures settled down $1.07 at $40.67 a barrel.

The declines reversed a crude rally on Monday on security fears related to Friday's attacks in Paris and France's bombing of Islamic State targets in Syria in the aftermath.

Gold (Other OTC: GDCWF - news) fell nearly 1 percent, heading back around six-year lows.

Copper prices touched their lowest point in more than six years as fears about demand in China and a higher dollar fueled negative sentiment. (Reporting by Lewis Krauskopf, Additional reporting by Dion Rabouin, Richard Leong and Barani Krishnan in New York, Abhiram Nandakumar in Bengaluru, Jemima Kelly, Atul Prakash, Marius Zaharia and Patrick Graham in London, and Shinichi Saoshiro in Tokyo; Editing by Gareth Jones and Nick Zieminski)