* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
* French, German and Euro zone PMIs weaker than expected
* Oil spikes over 1%
* MSCI All Country World Index down 0.2%
By Ritvik Carvalho
LONDON, Sept 23 (Reuters) - Global shares dipped on Monday
as weaker than expected economic surveys added to investor
worries over the unresolved U.S.-China trade dispute's effects
on the world economy, while oil gained more than 1% as Middle
East tensions remained elevated.
European stock markets opened lower as surveys of purchasing
managers from France, Germany, and the euro zone came in weaker
than expected. The pan-European STOXX 600 .STOXX index was
down 0.9%. .EU Euro zone business growth has stalled this month, a survey
showed on Monday, less than two weeks after outgoing ECB
President Mario Draghi pledged indefinite stimulus to revive the
bloc's ailing economy. The euro fell 0.4% to $1.0966 EUR=EBS after the German
Purchasing Managers' Index (PMI) release, its lowest in over a
week against the dollar. FRX/
Germany's DAX index .GDAXI hit its lowest level in nearly
two weeks, down 1.35% after the euro zone data, while France's
CAC 40 .FCHI fell nearly 1%.
The MSCI All Country World Index .MIWD00000PUS , which
tracks shares across 47 countries was down 0.25%.
Oil prices rose on doubts about how fast Saudi Arabia can
restore full crude output after an attack earlier this month on
its largest processing facility.
Brent crude futures LCOc1 -- the international benchmark
for oil -- rose to as much as $65.50 per barrel, a gain of over
1%. They last traded half a percent higher at $64.59. O/R
"Considering that Germany already contracted in Q2, today's
numbers effectively increase the risk of another negative
quarter in Q3, which by definition would constitute a technical
recession," said Marios Hadjikyriacos, investment analyst at XM.
"It seems that the malaise in manufacturing -- owed to trade
and Brexit worries -- has started to spread to the much larger
services sector as well."
Most Asian share markets slipped as investors waited for
more clarity on U.S.- China trade talks.
Market sentiment was fragile, with civil unrest in Hong Kong
and worries a trade deal between the United States and China
could take a long time to materialise. Moves were further
exaggerated by low volumes as Japanese markets were shut for a
public holiday.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS down 0.2% at 510.04 points. It is still up more
than 3% so far in September.
U.S. stock futures -- earlier up 0.4% -- sank after the PMI
data in Europe. S&P 500 E-mini futures ESc1 were last down
0.2%.
TRADE CONCERNS
Over the weekend, the U.S. Trade Representative's office
issued a brief statement characterising the two days of talks
with China as "productive." It added that a principal-level
trade meeting in Washington would take place in October, as
previously planned. China's Commerce Ministry, in a brief statement, described
the talks as "constructive", and said they had also had a good
discussion on "detailed arrangements" for the high-level talks
in October.
Additionally, the United States removed tariffs from more
than 400 Chinese products in response to requests from U.S.
companies.
Despite the improved tone, markets still remain unconvinced
about the possibility of an imminent deal.
"There are real concerns about the impact on economies from
the trade dispute," said Michael McCarthy, Sydney-based
strategist at CMC Markets.
"People are probably getting an idea that this will be a
long negotiation. And the longer it lingers the more impact it
will have economically."
Investors were rattled by news on Friday that Chinese
officials unexpectedly cancelled a visit to U.S. farms this week
following their two days of negotiations in Washington.
In the Middle East, news that five Yemeni civilians were
killed in air strikes by the Saudi-led coalition further soured
investor appetite. U.S. crude oil futures rose to $58.36 a barrel, a rise of
0.5%. O/R
The Pentagon has ordered additional troops to be deployed in
the Gulf region to strengthen Saudi Arabia's air and missile
defences following an attack on Saudi oil facilities.
U.S. Secretary of State Mike Pompeo said on Sunday the
additional troops are for "deterrence and defence" and that
Washington aimed to avoid war with Iran.
Markets will closely watch September manufacturing activity
surveys due from the United States later in the day.
In currencies, the dollar gained 0.25% against a basket of
currencies DXY= .
The British pound was 0.3% lower at $1.2431 GBP=D3 . A
ruling from Britain's Supreme Court is due this week on whether
Prime Minister Boris Johnson acted unlawfully in suspending
parliament for five weeks.