CORRECTED - GLOBAL MARKETS-Stocks, dollar slide even as growth fears ease

(Corrects to 8-month low for consumer sentiment slump, in paragraph 6)

* Global stocks pare losses as fears of double dip ease

* Dollar hits fresh 8-month low vs yen after GDP data

* Bonds rise on slightly weaker-than-forecast U.S. GDP

* Oil pares losses as Midwest data spurs recovery hopes (Adds close of European markets)

By Herbert Lash

NEW YORK, July 30 (Reuters) - Global stocks and the U.S. dollar slid on Friday as investors trimmed risk exposure on data showing the U.S. economy slowing a bit more than expected while other news suggested a slow, steady recovery.

The dollar fell to multi-month lows against the Japanese yen and gold rose back above $1,170 an ounce after data on U.S. gross domestic product mostly confirmed slow growth for investors. For details see: [ID:nN30125872]

But European stocks recovered from a sharp fall to close only slightly lower and U.S. stocks pared losses on separate, mixed signals from U.S. data. [ID:nLDE66T1LY] [ID:nN30181238]

The U.S. Commerce Department said GDP expanded at a 2.4 percent annual rate in the second quarter, less than the 2.5 percent pace analysts polled by Reuters said they expected.

Stocks on both sides of the Atlantic were down at one point by 1 percent after the release of the GDP data, but a jump in the Chicago Purchasing Managers Index suggested a slow but steady economic recovery was spurring buying.

The business barometer rose to 62.3 in July, higher than a forecast of 56.5. Yet in a separate report, consumer sentiment slumped to an 8-month low, emblematic of a fragile economy.

Some analysts remained upbeat.

"The market had second thoughts on the data we had," said Mike Lenhoff, chief strategist and head of research at Brewin Dolphin Securities in London. "All the news is not in the headline. The investment spending was strong."

Michael Woolfolk, senior currency strategist at BNY Mellon in New York, said the Chicago PMI report showed there is continued resilience in manufacturing and industry.

"We overreacted a bit to GDP, and that has faded now after this release. I wouldn't characterize GDP as disappointing, either," Woolfolk said.

Global stocks as measured by MSCI's all-country world index <.MIWD00000PUS> and its emerging market index <.MSCIEF> both trimmed losses to fall about 0.3 percent.

The FTSEurofirst 300 <.FTEU3> index of top European shares fell 0.3 percent to close down at 1,043.66 points. The index rose 5.3 percent in July, the most in four months.

Before 1 p.m., the Dow Jones industrial average <.DJI> was down 13.51 points, or 0.13 percent, at 10,453.65. The Standard & Poor's 500 Index <.SPX> was down 0.98 points, or 0.09 percent, at 1,100.55. The Nasdaq Composite Index <.IXIC> was up 2.49 points, or 0.11 percent, at 2,254.18.

Dollar bears sold the U.S. currency versus the yen on news of the GDP data. Analysts said the news follows a string of recent weak U.S. data that has weighed broadly on the dollar.

"It's going to be very difficult for a (dollar) rally and people are going to get more risk averse. You could see euro go below $1.30 and the dollar fall below 86 yen," said Boris Schlossberg, director of FX research at GFT Forex in New York.

The dollar was down against a basket of major currencies, with the U.S. Dollar Index <.DXY> down 0.07 percent at 81.582.

The euro <EUR=> was down 0.26 percent at $1.3043, and against the yen, the dollar <JPY=> was down 0.38 percent at 86.43.

Oil pulled back from losses that pushed benchmark crude below $77 a barrel.

U.S. light sweet crude oil <CLc1> fell 38 cents to $77.98 a barrel. ICE Brent <LCOc1> fell 11 cents to $77.47.

German government bond futures hit a one-week high as they tracked a U.S. Treasuries rally.

The U.S. benchmark 10-year Treasury note <US10YT=RR> was up 20/32 in price to yield 2.91 percent.

Spot gold prices <XAU=> rose $12.42 to $1,178.80 an ounce.

Gold is down nearly 6 percent so far in July, on track for its biggest monthly loss since December. Gold has slipped on concern over euro zone sovereign debt levels, which sent the metal to a record $1,264.90 an ounce in June. [ID:nLDE66T0UX]

Aluminium rose to an 11-week high due to industrial consumer buying, while copper reversed losses to hit a fresh three-month high. [ID:nLDE66T0QH]

Copper was on course for its biggest monthly gain in about one year, thanks to improved risk appetite. (To read Reuters' Global Investing Blog, double-click on http://blogs.reuters.com/globalinvesting; for the MacroScope Blog, double-click on http://blogs.reuters.com/macroscope; for Hedge Fund Blog, double-click on http://blogs.reuters.com/hedgehub) (Reporting by Matthew Lynley, Vivianne Rodrigues and Ellen Freilich in New York; Brian Gorman, Ian Chua and Jan Harvey in London; Writing by Herbert Lash; Editing by Andrew Hay)