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GLOBAL MARKETS-Stocks slip on earnings and global growth worries, dollar rises

Published 2016-07-19, 12:07 p/m
© Reuters.  GLOBAL MARKETS-Stocks slip on earnings and global growth worries, dollar rises
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* Wall Street opens lower as tech, consumer discretionary weigh

* U.S. housing start ups more than expected in June

* U.S. Treasury debt prices advance as risk tolerance slides

* Oil steady above $47, latest Libya hitch supports (Updates to open of U.S. markets, changes byline, dateline, previous LONDON)

By Saqib Iqbal Ahmed

NEW YORK, July 19 (Reuters) - Global equity prices ticked lower on Tuesday as investors took stock of some disappointing U.S. earnings reports and signs that Britain's decision to leave the EU could hurt other economies, while the U.S. dollar rallied to a four-month high.

Prices for U.S. Treasury debt, considered a safe-haven asset, rose as risk appetite soured following declines in stocks. Oil prices steadied, helped by a new Libyan supply disruption. dollar index .DXY , which tracks the greenback against six major currencies, rose to its highest level since mid-March at to 97.126. The U.S. dollar rose on a combination of economic news from the U.S. and Europe, with the euro dipping to a three-week low against the dollar of $1.0998.

Germany's ZEW economic sentiment indicator plunged to its lowest level since late 2012 in its first reading since the Brexit vote. U.S. data however underpinned a theme of strength in the economy, with housing starts rising more than expected in June. weighing on sentiment was the International Monetary Fund's move to cut its global growth forecasts for the next two years due to uncertainty over Britain's looming exit from the European Union. U.S. data was stronger and any time you get a sentiment number out of Germany that is worse than expected, that combination is going to give the dollar a little bit of a push against the euro," said Scott Wren, senior global equity strategist at Wells Fargo (NYSE:WFC) Investment Institute in St. Louis.

Investors, however, also were anxiously watching corporate results in the thick of the second-quarter earnings season. Technology and consumer discretionary stocks fell, spooked by Netflix's weak results late on Monday.

Goldman Sachs' GS.N results continued a market-beating streak for financials that JPMorgan (NYSE:JPM) JPM.N kicked off last week, but its shares fell 1 percent as some analysts said the profit beat was not as impressive as those of its peers.

"We've had some major financial earnings which have come through and now we are waiting to follow on with tech, and that's causing a short term pause in the rally," said Jamie Cox, managing partner at Harris Financial Group in Richmond, Virginia.

The Dow Jones industrial average .DJI rose 7.23 points, or 0.04 percent, to 18,540.28, the S&P 500 .SPX lost 3.8 points, or 0.18 percent, to 2,163.09 and the Nasdaq Composite .IXIC dropped 11.90 points, or 0.24 percent, to 5,043.89.

The MSCI world equity index .MIWD00000PUS , which tracks shares in 45 nations, was down 0.38 percent.

Europe's broad FTSEurofirst 300 index .FTEU3 suffered its worst day in nearly two weeks. The index slid 0.5 pct to 1,331.27, as Swedish industrial rubber maker Trelleborg TRELb.ST and Dutch chemicals company AkzoNobel AKZO.AS Trelleborg and AkzoNobel fell on concerns about their outlook.

Oil prices were helped by a new Libyan supply disruption, but concerns over a global glut of crude and refined fuel capped gains. crude LCOc1 was up 0.9 percent at $47 a barrel, while U.S. crude CLc1 was last down 0.46 percent at $45.03.

In bond markets, benchmark U.S. 10-year Treasury notes US10YT=RR were up 7/32 in price for a yield of 1.561 percent, down 2.6 basis points from late on Monday. cut some gains from earlier in the session hurt by the stronger dollar but was bolstered by weaker equities. Spot gold prices XAU= were up 0.18 percent to $1,330.81 an ounce.

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