GLOBAL MARKETS-Stocks fall, safe-havens gain as macro picture clouds tech shine

(Adds gold, oil settlement prices)
By Lawrence Delevingne
BOSTON, July 31 (Reuters) - Global stock markets fell on
Friday as doubts about the economic recovery from the
coronavirus pandemic overshadowed strong earnings from U.S.
technology firms, while the dollar rose but was still set for
its worst month in a decade.
Oil prices rose, benefiting from news that U.S. oil output
cuts in May were the largest on record, while gold hovered near
its all-time peak, helped by dollar weakness and dire economic
numbers from far and wide that sparked a rush to safety.
The dollar has been weakening amid expectations the U.S.
Federal Reserve will be forced to maintain its ultra-loose
monetary policy for years, a policy seen as debasing the
currency.
Energy stocks fell sharply after Chevron Corp CVX.N
reported an $8.3 billion loss on asset writedowns and ExxonMobil
Corp XOM.N recorded a second consecutive quarterly loss.
Gains from Apple Inc AAPL.O , Amazon.com AMZN.O and
Facebook Inc FB.O mitigated index losses following impressive
quarterly results after the bell on Thursday. Edward Moya, a New York-based senior market analyst with
trading firm OANDA, said the tech giants gave stocks "a nice
boost." But he noted other corporate disappointments and said
the dollar would remain "a punching bag in the short-term" amid
the coronavirus and U.S. government stimulus gridlock.
MSCI's world equity index .MIWD00000PUS , which tracks
shares in 49 nations, fell 0.48 percent to 549.25, pulled lower
by European stocks, which posted their first monthly decline
since a market sell-off in March on growing recovery doubts.
On Wall Street, the Dow Jones Industrial Average .DJI fell
59.33 points, or 0.23%, to 26,254.32, the S&P 500 .SPX gained
2.76 points, or 0.09%, to 3,248.98 and the Nasdaq Composite
.IXIC added 91.03 points, or 0.86%, to 10,678.84.
The dollar index .DXY , which tracks the greenback versus a
basket of six currencies, rose 0.337 points, or 0.36 percent, to
93.358.
The euro reached its highest in more than two years - set
for its best month in a decade - raising concerns that its
relative strength could hit European economic production.
U.S. government negotiations over another coronavirus relief
bill were not yet on a path toward a deal, U.S. House of
Representatives Speaker Nancy Pelosi said on Friday, hours
before the expiration of a federal unemployment benefit that has
been an essential lifeline for millions of
Americans. U.S. benchmark 10-year Treasury notes US10YT=RR traded
flat to yield 0.5331%.
Global funds recommended cutting equity holdings in July to
the lowest in four years and suggested keeping bond allocations
unchanged from June, a Reuters poll showed. The pan-European STOXX 600 index .STOXX gave up early
gains to close down 0.9%, pressured by a weak open on Wall
Street.
The euro zone's economy recorded its deepest contraction on
record in the second quarter, preliminary estimates showed on
Friday, while the bloc's inflation unexpectedly ticked up in
July. Those figures overshadowed positive manufacturing data from
China and Japan. MSCI's broadest index of Asian shares outside Japan
.MIAPJ0000PUS fell 0.3%. Japan's Nikkei .N225 dropped 2.82%
as a stronger yen weighed on exporters.
China's blue-chip CSI300 index .CSI300 closed up 0.84%,
its biggest monthly gain since February 2019, rising 12.8%.
Crude oil recovered from an overnight slump. U.S. crude
futures CLc1 rose 35 cents to settle at $40.27 a barrel, while
Brent futures LCOc1 settled up 37 cents at $43.31 a barrel.
Gold rose, with prices up 10% for the month. Spot gold
XAU= rose $10.50, or 0.5 percent, to $1,969.69 an ounce, just
short of record highs set earlier in the week as bullion marched
toward the $2,000 milestone. GOL/
Silver XAG= climbed 2% to $23.94 per ounce, on course for
a monthly rise of 33%, its largest on records going back to
1982, supported by investment and industrial demand.
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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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