(Updates prices as of 0751 GMT)

By Tom Wilson and Kevin Buckland

LONDON/TOKYO, Sept 25 (Reuters) - Stocks globally

slipped on Wednesday, with a continued stimulus-fueled rally in

China the one bright spot, while the dollar came under pressure

and crude oil retreated from a multi-week high.

European stocks fell 0.1%, after gaining nearly 1%

on Wednesday. Oil and gas shares led the losses, falling

0.9% on concerns China's stimulus plans would not do enough to

boost demand.

Wall Street was set for losses, too, with S&P 500 futures

down 0.2%.

The dollar, meanwhile, dipped to its lowest in a month

versus the euro and in two and a half years against the British

pound. U.S. consumer confidence data that showed the largest

decline in sentiment since August 2021 had overnight boosted the

case for a second hefty interest rate cut at the Federal

Reserve's next meeting.

The odds on another 50-basis point Fed rate cut at the

November meeting jumped to more than 60% from 53% a day earlier,

according to CME Group's FedWatch Tool.

"It feels like more is coming on the rate cutting side,"

said Samy Chaar, chief economist at Lombard Odier in Geneva.

The People's Bank of China followed its announcement of

wide-ranging policy easing on Tuesday with a cut to medium-term

lending rates to banks on Wednesday. Beijing's broad-based

stimulus - the biggest since the pandemic - also includes steps

to boost China's stock market and support for the ailing

property sector.

Mainland Chinese blue chips gained 1.4%,

adding to a 4.3% jump in the prior session. Hong Kong's Hang

Seng climbed 0.7%, adding to Tuesday's 4.1% surge.

While market players welcomed the stimulus, some analysts

say the PBOC's policy weapons don't have the key enemy to

economic growth in their line of sight: persistently weak

consumer demand.

"It's still short of that necessary to really handle the

broad imbalances of the dampening down of domestic demand in

China," Lombard Odier's Chaar said of the measures.

The strong start for Chinese stocks briefly invigorated

other regional indexes, but those gains soon fizzled. MSCI's

broadest index of Asia-Pacific shares outside Japan

gained 0.3%.

"The debate remains intense on whether there are legs to

this rally, though the desk is seeing investors opting to

buy/short cover first and ask questions later," UBS analysts

wrote in a note to clients.

DOLLAR ON THE BACK FOOT

Overall, the dollar stayed on the back foot.

In the wake of China's stimulus, the yuan strengthened to a

fresh 16-month high, briefly crossing the key 7-per-dollar level

in offshore trading, before retreating to be 7.0173 per dollar.

The euro added 0.1% to $1.1189 after earlier

pushing as far as $1.1199 for the first time since Aug. 26.

The Japanese yen was steady at 143.23 per dollar,

after earlier flipping between moderate gains and losses.

Sterling reached its highest since March 2022, at

$1.3430, before slipping back. It was last down 0.1%.

Meanwhile, Australia's dollar initially scaled its

highest since February of last year at $0.6908 but then slipped

back to sit at $0.68805 after inflation figures showed some

cooling, potentially setting up an earlier rate cut by the

central bank.

"The fall in the underlying measures of inflation is an

unexpected and welcomed surprise," said Tony Sycamore, an

analyst at IG, a brokerage.

Gold marked a new record peak at $2,670.43.

Brent crude futures slipped 0.5% to $74.80 a barrel,

not far from Tuesday's high of $75.87, a level previously not

seen since Sept. 3.

U.S. West Texas Intermediate crude slipped a similar

amount to $71.08 per barrel.