(Fixes "stock" to "stocks" in headline)
* Tech leads Wall Street lower
* China May industrial production growth at 17-year low
* European stocks suffer biggest fall in two weeks
* Spot gold hits 14-month highs
By Stephen Culp
NEW YORK, June 14 (Reuters) - Equity markets struggled and
safe-haven assets like gold were in demand on Friday as weak
Chinese data stoked investor anxieties over a global growth
slowdown and fears of a U.S.-Iran confrontation added to
geopolitical uncertainty.
Attacks on two oil tankers in the Gulf of Oman lifted oil
prices, although they remained on track for a weekly loss on
worries a sluggish world economy could hurt demand. China's industrial output growth slowed to a more than
17-year low, well below expectations, suggesting Beijing was
feeling the sting of the protracted trade spat with the U.S.
"Any time you have weak economic news coming out of China it
highlights the fact that the trade tensions are having a
negative impact on the global economy," said Robert Pavlik,
chief investment strategist at SlateStone Wealth LLC in New
York.
"The dollar is strengthening. It's seen as a safe haven.
Treasury yields are moving lower. This is all indicative of
concerns the global economy is slowing," Pavlik added.
A warning of a broad slowdown in chip demand from chipmaker
Broadcom Inc AVGO.O underscored the effects of the U.S.-China
tariff dispute, dragging on European as well as U.S. equity
indexes. Tariff-sensitive tech stocks pulled all three major U.S.
indexes lower and gold prices hit a 14-month high as investors
fled equities for less risky assets. GOL/
The Dow Jones Industrial Average .DJI fell 18.96 points,
or 0.07%, to 26,087.81, the S&P 500 .SPX lost 4.11 points, or
0.14%, to 2,887.53 and the Nasdaq Composite .IXIC dropped
29.82 points, or 0.38%, to 7,807.32.
MSCI's broad gauge of stocks across the globe
.MIWD00000PUS shed 0.33%, while the pan-European STOXX 600
index .STOXX lost 0.35%.
EYES ON THE FED
The Federal Reserve is set to hold its two-day monetary
policy meeting June 18-19, with investors closely watching its
outcome for clarity on expectations for a near-term rate cut.
A Reuters poll showed a growing number of economists expect
the Fed to cut interest rates this year, although the majority
still expect it to stay on hold. "There's optimism (Fed Chair Jerome) Powell will come to the
rescue on his white horse next week with a dovish statement, not
a rate cut yet," Pavlik said. "That's keeping equity losses in
check."
Growing worries about a new U.S.-Iranian confrontation set
crude prices on a rollercoaster ride, with Brent futures LCOc1
gaining 0.2% to $61.42 per barrel. Brent surged 2.2% on Thursday
after the Norwegian- and Japanese-owned tankers both experienced
explosions.
The dollar index, tracking the greenback against six major
peers, climbed to its highest in a week after encouraging retail
sales data for May eased fears that the U.S. economy is slowing
sharply, ahead of the Fed's meeting next week. The dollar index .DXY rose 0.35%, with the euro EUR=
down 0.47% to $1.1222.
Short-dated U.S. Treasury yields jumped, flattening the
yield curve, after data showed a pick-up in consumer spending
that subdued investor fears of rapid economic decay in the
second quarter. L2N23L0P4
Benchmark 10-year notes US10YT=RR last fell 1/32 in price
to yield 2.0925%, from 2.091% late on Thursday.
Gold pared some gains, but stayed on track for its third
straight advance.
Spot gold XAU= added 0.4% to $1,347.49 an ounce.
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Rate Cuts by central banks https://tmsnrt.rs/2Igfo8O
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