* Wall Street drifts lower on mixed earnings reports
* U.S. housing starts up more than expected in June
* Brexit uncertainty prompts IMF to cut global growth forecasts
* U.S. Treasury debt prices advance as risk tolerance slides
* Oil slips ahead of U.S. stockpile data (Updates with U.S. afternoon trading)
By Saqib Iqbal Ahmed
NEW YORK, July 19 (Reuters) - The recent rally in global equity prices faltered on Tuesday as investors pondered some disappointing earnings reports and signs that Britain's decision to leave the EU could hurt other economies, while the U.S. dollar climbed to a four-month high.
Prices for U.S. Treasury debt, considered a safe-haven asset, rose as risk appetite soured following declines in stocks. Oil prices slipped, pressured by the stronger U.S. dollar. dollar index .DXY , which tracks the greenback against six major currencies, rose to its highest level since March 10 to 97.148. The U.S. dollar rose on a combination of economic news from the U.S. and Europe, with the euro dipping to a three-week low against the dollar of $1.0998. ZEW economic sentiment indicator plunged to its lowest level since late 2012 in its first reading since the Brexit vote. U.S. data, however, underpinned a theme of strength in the economy, with housing starts rising more than expected in June. weighing on sentiment was the International Monetary Fund's cut to its global growth forecasts for the next two years due to uncertainty over Britain's looming exit from the European Union. U.S. data was stronger and any time you get a sentiment number out of Germany that is worse than expected, that combination is going to give the dollar a little bit of a push against the euro," said Scott Wren, senior global equity strategist at Wells Fargo (NYSE:WFC) Investment Institute in St. Louis.
Investors, however, also were anxiously watching corporate results in the thick of the second-quarter earnings season and a mixed bag of reports dented optimism.
Netflix NFLX.O shares slumped 14 percent after weak earnings late on Monday. Goldman Sachs (NYSE:GS) GS.N dropped 1.6 percent as its profit beat wasn't considered as impressive as those of its peers. think we are due for a period for digestion, perhaps a sideways trending market, as we let earnings catch up to the price appreciation from the past couple of weeks," said Terry Sandven, chief equities strategist at U.S. Bank Wealth Management. Dow Jones industrial average .DJI rose 8.46 points, or 0.05 percent, to 18,541.51, the S&P 500 .SPX lost 5.21 points, or 0.24 percent, to 2,161.68 and the Nasdaq Composite .IXIC dropped 21.40 points, or 0.42 percent, to 5,034.38.
The MSCI world equity index .MIWD00000PUS , which tracks shares in 45 nations, was down 0.38 percent.
European shares touched a one-week low on Tuesday as weak earnings updates from Ericsson (ST:ERICAs) ERICb.ST and AkzoNobel AKZO.AS weighed on markets. Europe's broad FTSEurofirst 300 index .FTEU3 closed down 0.44 pct to 1,332.21. prices slipped as the rallying dollar and a global fuel glut offset forecasts for a ninth straight weekly drop in U.S. crude stockpiles. crude LCOc1 settled down 30 cents, or 0.64 percent, at $46.66 a barrel. U.S. crude CLc1 ended 59 cents, or 1.30 percent, lower at $44.65.
In bond markets, benchmark U.S. 10-year Treasury notes US10YT=RR were up 9/32 in price for a yield of 1.560 percent. cut some gains from earlier in the session hurt by the stronger dollar but was bolstered by weaker equities. Spot gold prices XAU= were up 0.25 percent to $1,331.71 an ounce.