GLOBAL MARKETS-Stocks, metals fall; pound rises as BoE cuts

* Stocks fall, MSCI world index down 0.9 pct

* Wal-Mart, other US retailers warn after weak December

* Metal, oil prices drop

* Sterling rises after BoE cuts benchmark rate

By Vivianne Rodrigues

NEW YORK, Jan 8 (Reuters) - Stocks markets and oil prices fell broadly on Thursday after bleak economic data and a dim outlook from the world's largest retailer heightened fears of a prolonged global recession.

The dollar weakened while bonds and gold rose after Wal-Mart Stores Inc (WMT.N) indicated that U.S. consumer spending, which accounts for about two-thirds of the activity in the world's largest economy, continues to falter amid mounting unemployment and dwindling savings.

Shares in the company slid 9 percent earlier after it cut its profit forecast for its fourth quarter and said sales were weaker than Wall Street estimates. For details, see ID:[nN08485027].

The drop in Wal-Mart shares weighed on U.S. blue chips and on other retailing and consumer-oriented stocks world-wide.