GLOBAL MARKETS-Stocks slide as worries about Huawei fallout mount

(Adds oil, gold settlement prices)
* U.S., European chipmakers fall on supply chain concerns
* Oil prices mixed; OPEC likely to maintain production cuts
* Dollar holds steady ahead of release of Fed minutes
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

By Herbert Lash
NEW YORK, May 20 (Reuters) - Global equity markets fell on
Monday as a U.S. crackdown on China's Huawei Technologies led
chipmaker stocks in Europe and on Wall Street to slide on fears
of a widening trade war, while the dollar was steady ahead of
fresh insight on the Federal Reserve policies.
Asian shares managed to reverse some of last week's losses
after Washington said it would lift tariffs in North America,
but fresh Chinese trade comments sank that sentiment.
China accused the United States of harboring "extravagant
expectations" for a trade deal, underlining the gulf between the
two sides as the U.S. action last week against Huawei began to
hit the global tech sector.
Alphabet Inc's GOOGL.O Google suspended some business with
Huawei, Reuters reported, and Lumentum Holdings Inc LITE.O , a
major supplier of Apple Inc's AAPL.O face ID technology, said
it had discontinued all shipments to Huawei. German chipmaker Infineon IFXGn.DE said it has continued
most shipments to Huawei, denying a report in Japan's Nikkei
daily that it had suspended deliveries to the Chinese firm.
Because technology stocks are a big driver of equity market
returns, concerns about a slowdown in the sector weigh on
investor sentiment, said Michael Arone, chief investment
strategist at State Street Global Advisors in Boston.
"The volatility that we're seeing today is a direct result
of President Trump's threats to Huawei," Arone said. "The
challenge is there are no near-term trade meetings to provide a
positive catalyst to this discussion."
Apple's shares fell 3.75%, Lumentum Holdings fell 3.63%,
Infineon closed down 4.8% and Franco-Italian chipmaker
STMicroelectronics STM.PA tumbled 9.08%.
The PHLX Semiconductor Index .SOX of 30 U.S.
industry-related companies fell 4.15%.
Shares of Sprint Corp S.N and T-Mobile US Inc TMUS.O
jumped after they announced changes to their proposed $26
billion merger, while U.S. regulators were expected to announce
an agreement on the conditions necessary to approve the deal,
sources said. Shares later pared some gains after CNBC said the Justice
Department was leaning against T-Mobile's takeover of Sprint.
Sprint rose 14.89% and T-Mobile gained 2.83%.
The pan-European STOXX 600 index .STOXX closed down 1.06%
and MSCI's gauge of stock performance in 47 countries
.MIWD00000PUS shed 0.62%.
On Wall Street, the Dow Jones Industrial Average .DJI fell
120.78 points, or 0.47%, to 25,643.22. The S&P 500 .SPX lost
22.75 points, or 0.80%, to 2,836.78, and the Nasdaq Composite
.IXIC dropped 119.90 points, or 1.53%, to 7,696.39.
The dollar was little changed but maintained last week's
gains as investors held off on big moves while awaiting
developments in U.S-China trade negotiations and for insight on
Wednesday of the Fed's thinking on interest-rate policy with the
release of the minutes from the Fed's last policy meeting.
Investors hope the Fed minutes will show what prompted the
policy-makers to strike a broadly neutral stance early this
month.
The dollar index .DXY fell 0.06%, with the euro EUR= up
0.08% to $1.1165. The Japanese yen JPY= weakened 0.11% versus
the greenback at 109.99 per dollar.
U.S. Treasury yields slipped, with long-dated debt falling
for a second straight session as risk appetite diminished amid
the ongoing U.S.-China trade tensions.
Volume was generally light, with very little economic data
scheduled this week.
The benchmark 10-year U.S. Treasury note US10YT=RR fell
5/32 in price to yield 2.4122%.
Huawei, the world's largest telecoms equipment maker, was
officially added to a trade blacklist by the Trump
administration on Thursday, escalating the already bitter
U.S.-China trade war, while China on Monday accused the United
States of harboring "extravagant expectations" for a deal.
Oil prices rose to multi-week highs before global benchmark
Brent eased as the Organization of the Petroleum Exporting
Countries indicated it was likely to maintain production cuts
that have helped boost prices.
Brent crude futures LCOc1 settled down 24 cents to $71.97
a barrel and U.S. West Texas Intermediate crude futures CLc1
gained 34 cents to settle at $63.10 a barrel.
Gold steadied after recovering slightly from a more than
two-week low hit earlier in the session. U.S. gold futures
GCcv1 settled 0.1% higher at $1,277.30 an ounce.