* Dollar rises as inflation data backs rate hike
* European shares rise after strong corporate reports
* Euro hits seven-month low vs greenback
* Copper struggles at 6-year lows on China demand woes (Updates to late afternoon)
By Lewis Krauskopf
NEW YORK, Nov 17 (Reuters) - U.S. shares gave up gains on Tuesday after a soccer game in Germany was called off over concerns of a bomb attack, while U.S. longer-dated Treasuries prices held increases as traders cited a burst of safe-haven bids for bonds.
Oil prices fell sharply as concerns returned about a glut of supplies, which also undercut equities. The U.S. dollar rose as firming inflation backed expectations of an impending interest rate hike.
A friendly soccer game between Germany and the Netherlands in Hanover, Germany was called off less than two hours before its start for fear of a bomb attack, German police said. urn:newsml:reuters.com:*:nL8N13C4PG
Earlier in the day, U.S. stocks had registered strong increases, fueled by better-than-expected results from retailers Home Depot (N:HD) HD.N and Wal-Mart Stores (N:WMT) WMT.N .
The Dow Jones industrial average .DJI fell 20.51 points, or 0.12 percent, to 17,462.5, the S&P 500 .SPX lost 5.82 points, or 0.28 percent, to 2,047.37 and the Nasdaq Composite .IXIC dropped 5.16 points, or 0.1 percent, to 4,979.46.
In Europe, the FTSEurofirst 300 index .FTEU3 surged 2.6 percent, as Germany's United Internet UTDI.DE and Dutch-based Randstad RAND.AS , the world's second-biggest staffing company, posted encouraging results. urn:newsml:reuters.com:*:nL8N13C4EP
MSCI's all-country world index .MIWD00000PUS rose 0.5 percent.
"Overall, there is a macro tailwind for European equities," said Lorne Baring, managing director of B Capital Wealth Management. "The monetary policy of the (European Central Bank) will continue to weaken the euro versus other major currencies."
Greek stocks surged and bond yields hit their lowest in more than a year after the country's finance minister said Athens had reached an agreement with its lenders on financial reforms. urn:newsml:reuters.com:*:nL8N13C2C9
Data on Tuesday showed U.S. consumer prices increased in October after two straight months of declines, a sign of firming inflation that supported expectations the Federal Reserve will raise interest rates next month. urn:newsml:reuters.com:*:nL1N13C0UU
The dollar index .DXY , which measures the dollar against a basket of six major currencies, rose 0.15 percent. The euro EUR= lost 0.3 percent against the dollar, hitting a 7-month low. urn:newsml:reuters.com:*:nL1N13C15A
"I think the market has the mindset that there is almost nothing at this stage of the game that is going to dissuade the Fed from going in December," said Lane Newman, director of foreign exchange at ING Capital Markets in New York.
Benchmark 10-year Treasuries US10YT=RR were up 4/32 in price with a yield of 2.2553 percent. Prices on the 30-year bond US30YT=RR rose 18/32 with a yield of 3.0431 percent.
"There are a lot of reasons to be nervous and for a flight-to-safety (to bonds)," said Lou Brien, market analyst at DRW Trading in Chicago.
Oil prices slumped as the global oversupply in crude and petroleum products returned to focus. Brent crude futures LCOc1 settled down 99 cents at $43.57 a barrel, touching a session low at $43.50. U.S. crude futures CLc1 settled down $1.07 at $40.67 a barrel. urn:newsml:reuters.com:*:nL3N13C0FX
The declines reversed a crude rally on Monday on security fears related to Friday's attacks in Paris and France's bombing of Islamic State targets in Syria in the aftermath.
Gold XAU= fell nearly 1 percent, heading back around six-year lows.
Copper prices touched their lowest point in more than six years as fears about demand in China and a higher dollar fueled negative sentiment. urn:newsml:reuters.com:*:nL3N13C33H