GLOBAL MARKETS-Europe markets pull back on FX settlement after Japan stocks climb

* Equity indices fall, bank stocks hit after forex settlement* Core bond yields fall, demand supported by hopes of ECB action* Corporate updates knock UK retailers* Nikkei touches seven-year highs, expectations of snap electionBy Lionel LaurentLONDON, Nov 12 (Reuters) - European shares and core bond yields fell on Wednesday, bucking a strong performance in Japan, with bank stocks under pressure fo