GLOBAL MARKETS-Equities stall on widening U.S.-China rift; dollar slides

* European stocks open lower, buck slight Asia gains
* Dollar takes fresh data hit, gives gold a fillip
* Oil gives up some gains after output cut
* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh

By Simon Jessop and Alun John
LONDON/HONG KONG, Aug 18 (Reuters) - European shares slipped
on Tuesday as simmering political tensions between the United
States and China escalated, while concerns over a deadlock on
further U.S. fiscal stimulus drove the dollar towards a two-year
low against its rivals.
A weaker opening for the region's blue-chip euro STOXX 50
.STOXX50E weighed on Asian stocks with MSCI's broadest index
of Asia-Pacific shares outside Japan .MIAPJ0000PUS giving up
early gains to trade flat.
U.S. stock futures ESc1 were down 0.2%, pointing to a
weaker start on Wall Street and inching back slightly after tech
stocks had pushed sister index the Nasdaq to a record high on
Monday. Underpinning much of the equity market weakness was a fresh
instalment of the escalating spat between the United States and
China, with President Trump announcing further restrictions
overnight on tech giant Huawei Technologies Co HWT.UL .
Amid concern about the close ties between Beijing and the
maker of mobile phones and other tech, the Trump administration
moved to limit its access to commercially available chips, a
move set to disrupt global supply chains.
"Just when you thought things were cooling off between the
U.S. and China, Washington goes and pokes the dragon," said
financial analyst Connor Campbell at spreadbetters Spreadex.
"Their trade war anxieties reignited, the reaction from the
European indices was predictable."
Amid a sea of red for European equities, Britain's blue-chip
FTSE 100 .FTSE stood out, down 0.8%. Among the losers, mining
company BHP Group BHP.AX BHPB.L after profit missed forecasts
and it warned of a slowing global economy outside
China. In Asia, Korean stocks fell 2%, with Chinese blue chips
.CSI300 flat and Japan's Nikkei .N225 dipped 0.2%.
Investors had to balance the moves against Huawei with
Trump's comments that China was meeting its obligations under
the trade deal, pushing the Chinese currency to a more than
5-month high against the greenback CNY=CFXS .
In currency markets, the overarching theme was the
broadening dollar weakness story which weighted on European
government bond yields and lifted the prices of alternative
safe-haven assets such as gold.
The latest blow to the struggling dollar came from
disappointing manufacturing and mortgage data with the greenback
hitting a fresh 5-1/2 year low against the Swiss franc CHF=EBS
and nearing a two-year low against a basket of its rivals, hit
earlier this month. FRX/
In bonds, benchmark 10-year U.S. Treasuries US10YT=RR were
last down around 1 basis point at 0.6671. In Europe, German
government bond yields held steady at a three-day low, eyeing
rangebound trade ahead of crucial flash PMI data on Friday.
In commodities, oil prices edged lower, giving up a slice of
their recent gains after OPEC+ said the producer grouping was
almost fully complying with output cuts.
Brent crude LCOc1 was down 3 cents, or 0.1%, at $45.34 a
barrel, after gaining 1.3% on Monday. U.S. crude CLc1 was down
0.3%, at $42.78 a barrel, having risen 2.1% in the previous
session
Safe haven gold closed higher after Berkshire Hathaway also
disclosed a stake in Toronto-based Barrick Gold Corp ABX.TO ,
one of the world's largest mining companies.
Spot gold XAU= added 1% to once again breach the $2,000 an
ounce barrier, trading at $2,006 an ounce.

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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
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(Editing by David Evans)