GLOBAL MARKETS-Stocks dip as Fed meeting looms, oil climbs on geopolitical fears

* Tech leads Wall Street lower
* Investors eye next week's Fed meeting
* China's May industrial production growth at 17-year low
* Crude prices edge higher on Gulf of Oman tensions

(Updates to market close)
By Stephen Culp
NEW YORK, June 14 (Reuters) - U.S. stocks ended nominally
lower on Friday as investors awaited next week's Federal Reserve
meeting for signs of imminent easing, while the U.S.-Iran
confrontation in the Gulf of Oman added to geopolitical
uncertainty, sending oil prices higher.
Lingering worries over the U.S.-China trade war also weighed
on investor sentiment. Weak China data and a warning of a broad
slowdown in chip demand from chipmaker Broadcom Inc AVGO.O
were the latest signs of fallouts from the tariffs both
countries have imposed. The upcoming Fed meeting, on Tuesday and Wednesday, was seen
as pivotal for Wall Street, with stocks primed for a selloff if
the Fed fails to take an even more dovish tilt after
policymakers' comments raised expectations for a rate cut in
recent weeks. "There's a lack of information to trade and the magnitude of
the importance of the Fed next week can't be overstated, so you
don't want to put any position on in front of something that has
the potential to be such big news," said Brian Battle, director
of trading at Performance Trust Capital Partners in Chicago
Positive U.S. retail sales data helped boost the dollar and
short-term Treasury yields. The Dow Jones Industrial Average .DJI fell 17.16 points,
or 0.07%, to 26,089.61, the S&P 500 .SPX lost 4.66 points, or
0.16%, to 2,886.98 and the Nasdaq Composite .IXIC dropped
40.47 points, or 0.52%, to 7,796.66.
MSCI's broad gauge of stocks across the globe
.MIWD00000PUS shed 0.33%, while the pan-European STOXX 600
index .STOXX lost 0.40%.
Attacks on two oil tankers in the Gulf of Oman lifted oil
prices, although they posted a weekly loss on worries a sluggish
world economy could hurt demand. Growing worries about a U.S.-Iranian confrontation set crude
prices higher. U.S. crude CLc1 settled up 0.44% at $52.51 per
barrel, with Brent futures LCOc1 gaining 1.1% to $62.01 per
barrel.
China's industrial output growth came in well below
expectations, slowing to a more than 17-year low, suggesting
Beijing was feeling the sting of the protracted trade war with
the United States. ON NEXT WEEK'S FED MEETING
A Reuters poll showed a growing number of economists expect
the Fed to cut interest rates this year, although the majority
still see it holding steady. "If they indicate they won't or that they'll wait and see,
that's going to hurt," Battle, of Performance Trust Capital,
said. "We're going to be on pins and needles until we get some
indication from the Fed."
The dollar index climbed to its highest level in almost two
weeks on Friday after the retail sales data for May eased fears
that the U.S. economy is slowing sharply.
The dollar index .DXY rose 0.58%, with the euro EUR=
down 0.61% to $1.1206.
The retail report also sent short-dated U.S. Treasury yields
higher, flattening the yield curve. L2N23L10H
Benchmark 10-year notes US10YT=RR last rose 2/32 in price
to yield 2.0839%, from 2.091% late on Thursday.
Gold closed lower after hitting a 14-month peak earlier in
the session. Spot gold XAU= dropped 0.1% to $1,341.23 an ounce.

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Rate cuts by central banks https://tmsnrt.rs/2Igfo8O
GRAPHIC-Global assets in 2019 http://tmsnrt.rs/2jvdmXl
GRAPHIC-World FX rates in 2019 http://tmsnrt.rs/2egbfVh
GRAPHIC-MSCI All Country World Index Market Cap http://tmsnrt.rs/2EmTD6j
GRAPHIC-China trade shock interactive https://tmsnrt.rs/2SRopIf
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