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GLOBAL MARKETS-Stocks retreat from record, U.S. Treasury yields slip

Published 20/10/2017, 02:47 am
© Reuters.  GLOBAL MARKETS-Stocks retreat from record, U.S. Treasury yields slip
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* MSCI world index pulls back from intraday record

* Dollar retreats as Treasury yields slip back

* China central bank head warns of 'Minsky moment' (Updates with U.S. market open, changes byline, dateline; previous LONDON)

By Chuck Mikolajczak

NEW YORK, Oct 19 (Reuters) - World stock markets broadly retreated amid investor caution after a flurry of tepid corporate earnings reports from around the globe, stoking demand instead for safer assets like U.S. Treasuries, pushing yields lower.

Equities on Wall Street were pulled lower a day after the Dow Industrials index cracked the 23,000 barrier for the first time. Shares of Apple AAPL.O fell 2.6 percent to $155.68 on signs of poor demand for the iPhone 8.

Of the 11 major S&P sector groups, technology .SPLRCT , off 0.49 percent, was the biggest drag. were marking 30 years to the day since the 1987 Black Monday stock market crash, although many market participants considered another such crash unlikely. Dow Jones Industrial Average .DJI fell 53.97 points, or 0.23 percent, to 23,103.63, the S&P 500 .SPX lost 5.43 points, or 0.21 percent, to 2,555.83 and the Nasdaq Composite .IXIC dropped 36.92 points, or 0.56 percent, to 6,587.30.

European shares were on track for their biggest drop in two months on concerns over political upheaval in Spain and after disappointing results from large companies such as Unilever (LON:ULVR), France's Publicis and Germany's Kion. central government said it would suspend Catalonia's autonomy and impose direct rule after the region's leader threatened to go ahead with a formal declaration of independence if Madrid refused to hold talks. Spain thing is a negative story and considering the market is looking for a reason (to fall) and considering there are other negative stories today they are going to throw everything in the bathtub," said Ken Polcari, director of the NYSE floor division at O'Neil Securities in New York.

"The market is begging for a reason to want to back off."

The pan-European FTSEurofirst 300 index .FTEU3 lost 0.62 percent and MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.15 percent.

Madrid's IBEX .IBEX was last down 0.7 percent, after dropping as much as 1 percent. Spanish 10-year government bonds ES10YT=RR last fell 3/32 in price to yield 1.637 percent, from 1.625 percent on Wednesday.

That was enough to pull the euro EUR=EBS briefly into negative territory though it later recovered to hit a 1-week high on the dollar. /FRX

Also putting a damper on risk appetite was data from China, which showed economic growth cooled slightly to 6.8 percent in the third quarter from a year earlier, from the second quarter's 6.9 percent.

Other data showed that China's industrial output rose a stronger-than-expected 6.6 percent in September, while retail sales also outperformed. property sales fell for the first time in over two years. In addition, People's Bank of China Governor Zhou Xiaochuan spoke of the risks of a "Minsky moment" in the economy, referring to a sudden collapse in asset prices sparked by debt or currency pressures. dollar index .DXY fell 0.25 percent after touching a six-day low of 93.055, with the euro EUR= up 0.47 percent to $1.1842. 10-year notes US10YT=RR last rose 9/32 in price to yield 2.3088 percent, from 2.339 percent late on Wednesday.

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