* U.S. stocks near flat as worries linger over trade, China
* Earnings from Morgan Stanley (NYSE:MS), JP Morgan Chase (NYSE:JPM) disappoint
* Pound supported as May wins confidence vote (Updates with early U.S. markets' activity, changes dateline, previous LONDON)
By Caroline Valetkevitch
NEW YORK, Jan 17 (Reuters) - Concern over China's economic outlook and global trade left major world stock indexes little changed on Thursday, while an end to the latest chapter in Britain's exit from the European Union helped to stabilize sterling.
Disappointing earnings in the U.S. from Morgan Stanley MS.N , hot on the heels of similarly weak numbers from JP Morgan Chase JPM.N earlier in the week, hurt sentiment on Wall Street. Morgan Stanley shares slumped more than 5 percent.
Gains in U.S. healthcare and consumer discretionary shares offset the losses, leaving the U.S. benchmark S&P 500 equity index nearly flat.
Investors have been worried, too, that the U.S. government shutdown was starting to take a toll on the U.S. economy. White House economic adviser Kevin Hassett said the shutdown would shave 0.13 percent off quarterly economic growth for each week that it continues.
On Wall Street, the Dow Jones Industrial Average .DJI fell 27.31 points, or 0.11 percent, to 24,179.85, the S&P 500 .SPX gained 3.06 points, or 0.12 percent, to 2,619.16 and the Nasdaq Composite .IXIC added 9.39 points, or 0.13 percent, to 7,044.08.
The pan-European STOXX 600 index .STOXX rose 0.08 percent and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.03 percent.
CHINA
Some investors took heart from Beijing's confirmation that Chinese Vice Premier Liu He will head to the United States on Jan. 30 for more negotiations with Washington. Recent talks to resolve a protracted trade battle between the U.S. and China brought little progress.
Adding to recent worries was news that U.S. lawmakers introduced bills on Wednesday that would ban the sale of U.S. chips or other components to Huawei HWT.UL or other Chinese telecoms firms that violate U.S. sanctions or export control laws. about trade policy have been simmering there for a while," said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.
That came shortly before the Wall Street Journal reported federal prosecutors were investigating allegations that Huawei stole trade secrets from U.S. businesses. banks tumbled .SX7E after France's Societe Generale SOGN.PA issued a profit warning, and carmakers .SXAP skidded after U.S. Senate Finance Committee Chairman Charles Grassley said he thought President Donald Trump was "inclined" to impose tariffs on European cars. GBP= firmed towards a two-month high against the dollar. It was trading 0.3 percent up at $1.292, inching towards a mid-November high of $1.293.
As expected, British Prime Minister Theresa May narrowly won a confidence vote overnight and invited other party leaders for talks to try to break the impasse on a Brexit agreement. outline for Plan B https://reut.rs/2TVKYfe is due by next Monday and markets are currently assuming that with no easy way forward for May she will have to extend the date of Britain's exit from the European Union past the scheduled March 29.
U.S. Treasury yields ticked up as better-than-expected economic data offset the trade tensions between China and the United States, holding down safe-haven bids for U.S. government debt. 10-year notes US10YT=RR last fell 3/32 in price to yield 2.7378 percent, from 2.729 percent late on Wednesday.
Oil prices fell after U.S. crude production neared an unprecedented 12 million barrels per day (bpd). crude LCOc1 was last down $0.82, or 1.34 percent, at $60.5 a barrel. U.S. crude CLc1 was last down $1.22, or 2.33 percent, at $51.09 per barrel.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Asia stock markets
https://tmsnrt.rs/2zpUAr4 Asia-Pacific valuations
https://tmsnrt.rs/2Dr2BQA The chips (makers) are down
https://tmsnrt.rs/2HieTMX World FX rates in 2019
http://tmsnrt.rs/2egbfVh
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>