GLOBAL MARKETS-Oil eases, stocks slip, dollar weak

LONDON, Aug 23 (Reuters) - Oil prices fell on Wednesday as world powers pondered Iran's offer of more talks on their nuclear standoff while equities slipped in light August trading and the dollar fell against major currencies.

Euro zone government bonds were flat with traders waiting for more economic data to gauge the likely direction of monetary policy.

The price of crude oil, which has worried investors as geopolitical tension and soaring demand has driven it relentlessly higher, dropped below $73 a barrel.

U.S. crude was down 43 cents at $72.67 a barrel. London Brent crude was down 47 cents at $72.77 a barrel.

In reply to U.N. Security Council demands that it halt its nuclear work, Iran suggested on Tuesday that serious talks about the dispute could take place.

Traders had driven the price of oil higher on concerns the row could lead to a cutoff of Iranian oil.

Higher oil prices have hurt equities, but Wednesday's easing had little effect on stocks, which slipped in lacklustre trade.

The pan-European FTSEurofirst index <.FTEU3> of 300 leading shares was down 0.12 percent.

Earlier, Japan's Nikkei share average <.N225> dipped 0.11 percent or 18.14 points to close at 16,163.03. The broader TOPIX <.TOPX> was down 0.09 percent at 1,640.28.

EURO PERKS UP AFTER FALL

The euro staged a modest recovery against the dollar after falling sharply on Tuesday when the closely-watched German ZEW business sentiment index hit its lowest in five years.

The dollar also fell back against the yen, eroding gains made after hawkish comments from Chicago Federal Reserve President Michael Moskow who said more U.S. rate rises may be needed to keep prices in check.

The euro was up 0.13 percent against the dollar at $1.2820 , and the dollar was down 0.2 percent against the yen at 116.28 .

Euro zone government bonds were flat to lower as traders waited for data. Belgium's August business confidence index, setting the stage for Thursday's key Ifo sentiment report, was was due later.


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