GLOBAL MARKETS-World stocks fall again on econ, bank gloom

* Global stocks markets battered again

* Europe loses 1 percent, Japan 2.3 percent

* Oil below $55 a barrel, dollar strengthens

By Jeremy Gaunt, European Investment Correspondent

LONDON, Nov 18 (Reuters) - Global shares fell again on Tuesday, battered by growing prospects of a deep global recession and one of the biggest job cut plans in history at Citigroup.

The dollar was higher against both the euro and the yen. Oil Clc1 fell below $55 a barrel for a 19 percent loss this month.

Despite relatively stable conditions in short-term credit markets, banks were struggling to contain climbing losses on bad loans, with Citi (C.N: Quote, Profile, Research, Stock Buzz), the second-largest U.S. bank, reducing its workforce by 15 percent in a dramatic move to restore itself to health.

HSBC also laid off an additional 500 staff in Asia after announcing 1,100 job cuts in September.

The state of the global economy remained the main concern.

"Analysts are no longer wondering if we are in a recession. The question now is how long and how painful will this economic contraction be," said David Evans, analyst at BetOnMarkets.com.

The pan-European FTSEurofirst stock index .FTEU3 was down 1 percent, giving up early minor gains. Global stocks as measured by MSCI .MIWD00000PUS were also down 1 percent percent for an 11 percent loss this month and a nearly 48 percent decline in the year-to-date.

MSCI's benchmark emerging market stock index .MSCIEF was down 3 percent, reflecting concern about the impact on traditionally volatile sectors from the global downturn.

Japan's Nikkei average .N225 slipped 2.3 percent, eith exporters such as Sony Corp (6758.T: Quote, Profile, Research, Stock Buzz) battered.

"There's no question that the economies of both the United States and Japan are doing poorly and will do worse, so the downside risk is quite high," said Toshihiko Murai, general manager of equities at Nozomi Securities.

The benchmark Nikkei shed 194.17 points to 8,328.41. The broader Topix .TOPX lost 1.8 percent to 835.44.

DOLLAR STRONGER

The dollar rose against the euro and yen as the stream of bad economic news prompted more unwinding of risky currency positioning in favour of the U.S. currency.

"The big issue is whether we are going to see a continuation of dollar repatriation," said James Shugg, economist at Westpac in London. "There's likely (to be) nothing to stop this from happening in the short term."

The euro was down about a third of a percent to $1.2605. The dollar gained about a quarter of a percent against the yen to 96.59 yen.

Euro zone government bond futures edged higher.

The Bund future FGBLc1 was 8 ticks up at 118.82, compared with 118.74 at Monday's settlement close.

Two-year paper yielded 2.167 percent , 2 basis points less than in late Monday trade while 10-year Bund yields were flat at 3.647 percent .

(Additional reporting by Naomi Tajitsu and Atul Prakash; editing by David Stamp)