GLOBAL MARKETS-Stocks, dollar fall on profit-taking, bank action

* Wall Street falls as U.S. banks sell stock to raise cash

* Dollar rebounds from four-month low on safe-haven appeal

* Government debt rebounds as weak stocks spur safety bids

* Oil eases to below $58 a barrel on profit-taking, dollar (Updates with U.S. markets activity; changes dateline, previous LONDON)

By Herbert Lash

NEW YORK, May 11 (Reuters) - U.S. and European stocks fell and oil slid on Monday as investors locked in profits after a strong run-up in riskier assets and major U.S. banks announced large stock offerings to repay government bailouts.

U.S. Treasuries and euro zone government debt rose as the outlook for stocks weakened, while the Federal Reserve bought $3.51 billion of longer-dated bonds and the Bank of England bought 3.4 billion pounds ($5.16 billion) of long-dated gilts.

Oil retreated to under $58 a barrel, pressured by weaker equity markets, a firmer dollar and profit-taking, all helping drive crude's price from six-month highs reached last Friday.

The dollar rose, rebounding from a four-month low, as investors booked profits from recent gains. But interbank rates in London continued to fall as the overall outlook in the financial sector eases.