By Danilo Masoni

August 17 (Reuters) – World stocks and oil prices fell on Wednesday as UK inflation – which hit its highest level since 1982 – and rising interest rates in New Zealand reminded investors of the challenges facing the world economy.

* MSCI’s benchmark index of global equities fell from their opening highs and traded almost flat at 1055 GMT, suggesting the rebound that started in July is running out of steam.

* European shares fell 0.3%, while MSCI’s index of Asia Pacific shares excluding Japan added 0.1%, well off its high opening.

* Wall Street appears to be heading for a weak start, with S&P 500 futures down 0.7% after strong gains on Tuesday following better-than-expected results from Walmart and Home Depot, reinforcing upbeat views about consumer health.

* However, a larger-than-expected rise in UK consumer prices, to 10.1% in July, highlighted increasing pressure on households and helped consolidate expectations of a further 50 basis point rate hike at the Bank of England’s next meeting.

* After an early rally in the data, sterling trimmed some gains and traded little changed against the dollar.

* The two-year UK bond yield, which is sensitive to rate hike expectations, rose to its highest in nearly 14 years and above the 10-year yield, marking a reversal of the yield curve that many investors see as a key sign of an economic slowdown.

* New Zealand shares closed flat. After the initial rally, the New Zealand dollar turned negative after the local central bank announced its fourth straight 50 basis point rate hike, showing no signs of slowing down.

* In currency markets, the dollar index was up 0.1% at 106.59 ahead of the release of the latest Federal Reserve meeting minutes, which investors will check for further clues on the outlook for future monetary policy tightening.

* In Europe, yields rose as UK inflation data refocused investors’ attention on possible monetary tightening in the euro zone. The two-year German bond yield rose 13 basis points to 0.714%, the highest since July 21.

* The yield on the 10-year US Treasury bond rose 4 basis points to 2.865%.

* Oil hit a six-month low after briefly strengthening as concerns about the prospect of a global recession overshadowed reports showing falling US crude and gasoline stocks.

* Brent crude fell 0.4% to $92 a barrel, while US West Texas Intermediate crude fell 0.1% to $86.4.

* Spot gold is trading in a narrow range, down 0.3% at $1,771 an ounce.

(Reporting by Danilo Masoni and Sam Byford in Tokyo; Editing in Spanish by Ricardo Figueroa)