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GLOBAL MARKETS-Stocks fall with U.S. dollar; oil slips before OPEC

Published 2018-06-21, 03:26 p/m
© Reuters.  GLOBAL MARKETS-Stocks fall with U.S. dollar; oil slips before OPEC
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* Global stocks subdued by trade fears, Daimler warning

* U.S. dollar, Treasury yields fall after U.S. data

* Oil investors wary before OPEC meeting

By Sinéad Carew

NEW YORK, June 21 (Reuters) - Stocks around the world fell on Thursday and the U.S. dollar slipped from a peak as investors flocked to bonds after weak economic data and on worries about a U.S.-China trade war.

Oil futures were lower before an OPEC meeting expected to increase the world's supply of crude and after a report of a large stockpile draw in the United States. O/R

The dollar fell from an 11-month high against a basket of major currencies as the Philadelphia Federal Reserve's gauge of U.S. Mid-Atlantic business activity fell to a near 1-1/2 year low. equity investors sold shares on Thursday as they got some specific indications on the potential impact of U.S. President Donald Trump's trade tariff stand-off with China. German carmaker Daimler DAIGn.DE cut its earnings forecast late Wednesday saying tariffs on cars sent from the United States to China would hurt Mercedes-Benz car sales. feeling had been there is some complacency built in to that expectation that it is more ploy than policy. But one of the first cracks in that argument right now is the Daimler announcement," said Eric Wiegand, senior portfolio manager at U.S. Bank Private Wealth Management in New York.

"Investors are hopeful over time we will get to an agreement and there won't be a lot of negative consequences along the way but clearly it is still something we are waiting for clarity.”

The Dow Jones Industrial Average .DJI fell 180.4 points, or 0.73 percent, to 24,477.4, the S&P 500 .SPX lost 16.09 points, or 0.58 percent, to 2,751.23 and the Nasdaq Composite .IXIC dropped 60.98 points, or 0.78 percent, to 7,720.54.

The pan-European FTSEurofirst 300 index .FTEU3 lost 0.93 percent and MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.56 percent.

Emerging market stocks lost 1.04 percent.

But, Argentina's MSCI stock index .MIAR00000PUS rose 7.6 percent, putting it on track for its biggest one-day percentage gain since August 2017.

Index provider MSCI said late Wednesday it would reclassify Argentina and Saudi Arabia as emerging market countries next year, broadening the investor base for both countries. Treasuries were also impacted by trade concerns. Benchmark 10-year notes US10YT=RR last rose 9/32 in price to yield 2.8967 percent, from 2.928 percent late on Wednesday.

The 30-year bond US30YT=RR last rose 15/32 in price to yield 3.0402 percent, from 3.064 percent late on Wednesday.

The dollar index .DXY fell 0.3 percent, with the euro EUR= up 0.4 percent to $1.1616.

The Japanese yen strengthened 0.42 percent versus the greenback at 109.90 per dollar.

Global benchmark Brent crude oil futures extended losses ahead of Friday's meeting of the Organization of the Petroleum Exporting Countries, where producers are expected to boost output.

U.S. crude CLcv1 was unchanged at $65.71 per barrel and Brent LCOcv1 was last at $73.13, down 2.15 percent on the day.

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