(Adds gold, oil settlement prices)
* Potential probe of Apple hits red-hot tech-sector
* Euro marches higher, dollar slides to almost two-year low
* Markets eye escalating U.S.-China tensions
* Gold extends gains to new 9-year peak
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh
By Herbert Lash
NEW YORK, July 23 (Reuters) - The dollar slipped to an
almost two-year low and gold rose further on Thursday as a gauge
of global equities retreated on concerns about a potential probe
of Apple Inc AAPL.O took the wind out of the high-flying tech
sector.
Multiple U.S. states are investigating Apple for potentially
deceiving consumers, according to a March document obtained by a
tech watchdog group. Apple shares fell 4.3% and pulled the Dow,
Nasdaq and S&P 500 lower. Equity markets had been trading slightly lower before the
Apple news on concerns about labor market weakness due to the
coronavirus pandemic and deteriorating U.S.-China relations.
The dollar hit four-month lows against a basket of peer
currencies and gold rose for a fifth straight session to almost
$1,900 an ounce, off about $25 from its all-time peak as rising
U.S.-China tensions increased bullion's safe-haven appeal.
Investors are selling the greenback on expectations the U.S.
economy will likely underperform its peers in the developed
world as the surge in new coronavirus infections pushed the
overall number of cases in the United States over 4 million.
"There has been a turn in dollar sentiment," said Marc
Chandler, chief market strategist at Bannockburn Forex in New
York.
The dollar index =USD fell 0.33% at $94.6870, sliding to
$94.587 at one point, a low last seen in September 2018.
Better-than-expected earnings in Europe initially lifted
regional shares, with Germany's Daimler AG DAIGn.DE
forecasting a rise in operating profit at its Mercedes-Benz
division and Unilever 's ULVR.L second-quarter sales falling
far less than feared.
Europe's broad FTSEurofirst 300 index .FTEU3 closed up a
bare 0.08%.
Wall Street struggled after four days of gains as investors
awaited a new U.S. coronavirus relief package and the number of
Americans seeking unemployment benefits unexpectedly rose last
week for the first time in nearly four months.
Along with Apple, Microsoft MSFT.O , Amazon.com AMZN.O ,
Facebook FB.O and Google parent Alphabet GOOGL.O all
tumbled. The five stocks account for 22% of the S&P 500's market
cap and have returned about 35% this year, compared to a 5%
decline for the remaining stocks in the benchmark index.
MSCI's benchmark for global equity markets .MIWD00000PUS
fell 0.72%, pulled lower by Wall Street.
The Dow Jones Industrial Average .DJI fell 1.33%, the S&P
500 .SPX lost 1.22% and the Nasdaq Composite .IXIC dropped
2.17%.
A further slide in U.S. Treasury yields, with the benchmark
10-year note staying below 0.6%, damped financial stocks.
"Financials are just going to have a tough time
participating if we stay this low, that being the second-largest
sector in the S&P 500, said JJ Kinahan, chief market strategist
at TD Ameritrade in Chicago.
"It's going t be hard to continue momentum," he said.
The 10-year Treasury US10YT=RR note fell 1.4 basis points
to 0.584%.
Equities have rallied to their strongest since February,
with many country indices erasing their slump in March when the
coronavirus pandemic sent markets into free-fall.
Oil prices fell 2% as the surge in coronavirus cases
triggered fears of a hit to demand and the latest U.S.-China
spat outweighed the benefit of a weaker dollar.
Brent crude futures LCOc1 settled down 98 cents at $43.3l
a barrel, while U.S. crude futures CLc1 fell 83 cents to
settle at $41.07 a barrel.
U.S. gold futures GCv1 settled up 1.3% at $1,890 an ounce.
Investors have flocked to the safe-haven metal as they seek
shelter from a potential reversal in pumped-up stock prices and
a possible rise in inflation following the enormous monetary and
fiscal stimulus around the world.
In currency markets, the euro was up 0.33% to $1.1606 as it
rode the European Union approval on Monday of a 750 billion euro
recovery fund to revive the region's coronavirus-hit economies.
Traders pleased with the deal have also pushed Italian
borrowing costs lower, and yields on 10-year government debt
dropped to a new 4-1/2 month low IT10YT=RR , moving closer to
1%.
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Spot gold price https://tmsnrt.rs/2ZQaU1m
The MSCI world equity index https://tmsnrt.rs/2CyOyca
GRAPHIC-World FX rates http://tmsnrt.rs/2egbfVh
GRAPHIC-MSCI All Country World Index Market Cap http://tmsnrt.rs/2EmTD6j
GRAPHIC-Emerging markets http://tmsnrt.rs/2ihRugV
GRAPHIC-Global assets in 2020 http://tmsnrt.rs/2jvdmXl
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