GLOBAL MARKETS-Investors turn to debt as oil surges anew

(Recasts, adds U.S. markets, byline; changes dateline, previous LONDON)

NEW YORK, April 9 (Reuters) - Oil prices surged to a fresh record high and U.S. Treasury debt prices rose on Wednesday as recession fears and a bleak corporate profit outlook lifted demand for less-risky investments like government bonds.

The U.S. economy will tip into recession this year and there is a 25 percent chance world growth will slow to 3 percent or less, the International Monetary Fund forecast.

On Wall Street, U.S. stock indexes slipped as United Parcel Service Inc's (UPS.N: Quote, Profile, Research) forecast for an earnings shortfall and the sharp rise in oil prices dampened the outlook for corporate results.

European shares also fell, pressured by financial shares on the view that they may have to reveal more damage to earnings inflicted by the still simmering global credit crisis.

The dollar eased against a basket of currencies as traders snapped up the euro in anticipation of more tough inflation talk and signals from the European Central Bank that it was not ready to cut interest rates.

Gold firmed as the dollar slipped on growing expectations of further aggressive rate cuts by the U.S. Federal Reserve.

A resurgence in oil prices, which will exact a toll on consumers in the United States who are struggling with loan payments and a faltering job market, added to the sour economic outlook. That helped push money into safe-haven bonds.

"It takes more money out of consumers' pockets. It's a drag on growth. More people are starting to think about a recession," said Michael Franzese, head of government trading at Standard Chartered in New York.