* Intel helps Wall St shrug off Italy woes, sends Dow to record
* Oil eases below four-year highs; U.S. inventory rise expected
* Euro weakens to six-week low as Italian concerns weigh
* European stocks fall on anti-euro rhetoric
* Italian bond yields rise, bank stocks sink
* Gold jumps over 1 pct as equity selloff triggers safe-haven bids
* GRAPHIC-World FX rates in 2018: http://tmsnrt.rs/2egbfVh
By Laila Kearney
New York, Oct 2 (Reuters) - Stocks were shaky around the globe and European assets sold off on Tuesday as anti-euro comments by an Italian lawmaker sent Italy's bond yields to multi-year highs and optimism over an agreement to revamp a North American trade deal receded.
The MSCI world equity index .MIWD00000PUS dipped 0.2 percent, paring Monday's gains that followed the new U.S.-Mexico-Canada trade deal. The pan-European FTSEurofirst 300 index .FTEU3 lost 0.57 percent.
Wall Street slipped at the open with bank stocks the biggest drag, but shares of Intel INTC.O pulled up the NASDAQ and Dow, which hit a record high on the day. The Dow Jones Industrial Average .DJI rose 155.23 points, or 0.58 percent, to 26,806.44, the S&P 500 .SPX gained 3.53 points, or 0.12 percent, to 2,928.12 and the Nasdaq Composite .IXIC dropped 18.57 points, or 0.23 percent, to 8,018.73.
The economics spokesman for Italy's ruling League party, Claudio Borghi, said in a radio interview that most of the country's problems could be solved by having its own currency. comments drove Italian 10-year bond yields to a new 4-1/2-year high, pushing the spread between Italian and German yields to the widest for more than five years. in Italian banks .FTIT8300 , which have large sovereign bond holdings, hit a 19-month low before recovering part of their losses.
"We are dealing with a war of words, with the euro on one side and Italy on the other," said Credit Agricole (PA:CAGR) head of G10 FX Strategy Valentin Marinov. "There's a lot of headline risk about."
Borghi and Prime Minister Giuseppe Conte backed down, calling the euro "unrenounceable", helping to calm markets and erasing losses for Italy's FTSE MIB .FTMIB . euro EUR= fell to its weakest since Aug. 21 at $1.1505, before retracing to $1.1541, down 0.30 percent on the day. single currency has been hurt by concerns that a significant increase in the Italian budget will deepen Italy's debt and deficit problems, and by extension the European Union's.
Asian stocks were lower as the boost from the agreement to save the North American free trade deal faded. The deal lifted optimism for a resolution of a trade row between the United States and China.
China's financial markets are closed for the week of Oct. 1-5 for national holidays, but data showing weaker factory growth in China also hit Hong Kong stocks. U.S. and Canada forged a last-minute deal on Sunday to salvage NAFTA as a trilateral pact with Mexico, rescuing a $1.2 trillion open-trade zone that had been about to collapse after nearly a quarter century in operation. trade pact helped the dollar index .DXY rise to its highest since Aug. 21, at 95.744. It last rose 0.21 percent.
The dollar's strength weighed on the leading emerging markets stock index .MSCIEF , which fell 1.2 percent, setting it on course for its biggest one-day loss for a month.
Gold rose as investors sought refuge in the safe haven after equity markets weakened. Spot gold XAU= added 1.3 percent to $1,202.61 an ounce. U.S. gold futures GCcv1 gained 1.31 percent to $1,207.30 an ounce. prices eased slightly on Tuesday, remaining close to four-year highs on worries that global supplies will drop due to Washington's sanctions on Iran. O/R
"This is the market catching its breath," said Gene McGillian, director of market research at Tradition Energy in Stamford, Connecticut. The market steadied after rallying in three consecutive sessions.
Brent LCOc1 fell 31 cents to $84.67 per barrel by 2:13 p.m. EDT (1813 GMT), a day after reaching a four-year high of $85.45. U.S. West Texas Intermediate (WTI) crude futures CLc1 were 25 cents lower at $75.05 a barrel, after earlier touching a four-year high of $75.91.
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https://reut.rs/2P306Ft Italy
https://reut.rs/2P7Anff Italy/German yield gap widest in over 5 years
https://reut.rs/2P0x61a
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