* Dow Jones Industrials close at record high
* Oil eases below four-year highs; U.S. inventory rise expected
* Euro weakens to six-week low as Italian concerns weigh
* European stocks fall on anti-euro rhetoric
* Italian bond yields rise, bank stocks sink
* Gold jumps as stocks selloff entices safe-haven bids
* GRAPHIC-World FX rates in 2018: http://tmsnrt.rs/2egbfVh (Updates throughout with closing prices)
By Laila Kearney
New York, Oct 2 (Reuters) - Stock indexes around the globe weakened on Tuesday, European assets sold off and Italy's bond yields hit multiyear highs after an Italian lawmaker made anti-euro comments, though Wall Street's blue-chip index bucked the trend and set a new record.
The MSCI world equity index .MIWD00000PUS dipped 0.33 percent, paring Monday's gains that followed the new U.S.-Mexico-Canada trade deal. The pan-European FTSEurofirst 300 index .FTEU3 lost 0.57 percent.
Two of Wall Street's three major indexes closed lower on Tuesday, but shares of companies including Boeing (NYSE:BA) BA.N and Caterpillar (NYSE:CAT) CAT.N pushed up the Dow, which closed at a fresh record high. .N
The Dow Jones Industrial Average .DJI rose 122.73 points, or 0.46 percent, to end at 26,773.94, the S&P 500 .SPX dipped 1.16 points, or 0.04 percent, to 2,923.43 and the Nasdaq Composite .IXIC dropped 37.76 points, or 0.47 percent, to close at 7,999.55.
In Italy, the economics spokesman for the country's ruling League party, Claudio Borghi, said in a radio interview that most of the country's problems could be solved by having its own currency. comments drove Italian 10-year bond yields to a new 4-1/2-year high, pushing the yield spread between Italian debt and German Bunds to their widest in over five years. in Italian banks .FTIT8300 , which have large sovereign bond holdings, hit a 19-month low before recovering some of their losses.
"We are dealing with a war of words, with the euro on one side and Italy on the other," said Valentin Marinov, Credit Agricole (PA:CAGR)'s head of G10 FX Strategy. "There's a lot of headline risk about."
Borghi and Italian Prime Minister Giuseppe Conte backed down, calling the euro "unrenounceable", helping to calm markets and erasing losses for Italy's FTSE MIB .FTMIB . euro EUR= fell to its weakest since Aug. 21 at $1.1505, before retracing to $1.1551, down 0.22 percent on the day. single currency has been hurt by concerns that a significant increase in the Italian budget will deepen the country's debt and deficit problems, and by extension those of the European Union.
In Asia, stocks were lower as the lift from the agreement to save the North American free trade deal faded. The deal had boosted optimism for a resolution of a trade row between the United States and China.
China's financial markets are closed for the week of Oct. 1-5 for national holidays, but data showing weaker factory growth in China hit Hong Kong stocks. United States and Canada forged a last-minute deal on Sunday to salvage a trilateral pact with Mexico, rescuing a $1.2 trillion open-trade zone that had been about to collapse after nearly a quarter century in operation. trade pact helped the dollar index .DXY rise to 95.744 - its highest since Aug. 21 - and it was last up 0.17 percent.
The dollar's strength weighed on the leading emerging markets stock index .MSCIEF , which fell 1.2 percent, setting it on course for its biggest one-day loss for a month.
Gold rose to its highest level in more than a week as investors sought refuge in the safe haven after equity markets weakened. Spot gold XAU= added 1.3 percent to $1,202.69 an ounce. U.S. gold futures GCcv1 gained 1.32 percent to $1,207.40 an ounce. prices eased slightly on Tuesday, remaining close to four-year highs on worries that global supplies will drop due to Washington's sanctions on Iran.
Brent LCOc1 fell 18 cents to settle at $84.80 per barrel, a day after reaching a four-year high of $85.45. U.S. West Texas Intermediate (WTI) crude futures CLc1 settled 7 cents lower at $75.23 a barrel, after earlier touching a four-year high of $75.91. O/R
"This is the market catching its breath," said Gene McGillian, director of market research at Tradition Energy in Stamford, Connecticut, as the market steadied after rallying in three consecutive sessions.
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https://reut.rs/2P306Ft GRAPHIC-Italy borrowing costs hit 4-1/4-year highs
https://reut.rs/2P7Anff GRAPHIC-Italy/German yield gap widest in over 5 years
https://reut.rs/2P0x61a
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