CORRECTED-GLOBAL MARKETS-Stocks slide as worries about Huawei fallout mount

(Corrects third bullet point to say "Fed minutes," not "Fed
meeting"; corrects first sentence to say Fed policies this week,
not Fed meeting this week; corrects 14th paragraph to show why
market awaiting insight on Fed's policy thoughts)
* U.S., European chipmakers fall sharply on supply chain
concerns
* Oil prices rise as OPEC says to maintain production cuts
* Dollar holds steady before this week's Fed minutes
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

By Herbert Lash
NEW YORK, May 20 (Reuters) - Global equity markets fell on
Monday as a U.S. crackdown on China's Huawei Technologies led
chipmaker stocks in Europe and on Wall Street to slide on fears
of a widening trade war, while the dollar was steady before
fresh insight on the Federal Reserve's interest rates policies
this week.
Asian shares managed to reverse some of last week's losses
after Washington said it would lift tariffs in North America,
but fresh Chinese trade comments sank that sentiment.
China accused the United States of harboring "extravagant
expectations" for a trade deal, underlining the gulf between the
two sides as the U.S. action last week against Huawei began to
hit the global tech sector.
Alphabet Inc's GOOGL.O Google suspended some business with
Huawei, Reuters reported, and Lumentum Holdings Inc LITE.O , a
major supplier of Apple Inc's AAPL.O face ID technology, said
it had discontinued all shipments to Huawei. German chipmaker Infineon IFXGn.DE said it has continued
most shipments to Huawei, denying a report in Japan's Nikkei
daily that it had suspended deliveries to the Chinese firm.
Technology stocks are a big driver of equity market returns
so concerns about a slowdown in the sector weigh on investor
sentiment, said Michael Arone, chief investment strategist at
State Street Global Advisors in Boston.
"The volatility that we're seeing today is a direct result
of President Trump's threats to Huawei," Arone said. "The
challenge is, there are no near-term trade meetings to provide a
positive catalyst to this discussion," he said.
Apple's shares fell 3.0%, Lumentum Holdings fell 2.46%,
Infineon lost 4.56% and Franco-Italian chipmaker
STMicroelectronics STM.PA tumbled 9.18%.
The PHLX Semiconductor Index .SOX of 30 U.S.
industry-related companies fell 3.28%.
Shares of Sprint Corp S.N and T-Mobile US Inc TMUS.O
jumped after they announced changes to their proposed $26
billion merger, while U.S. regulators were expected to announce
an agreement on the conditions necessary to approve the deal,
sources said. Sprint surged 24.19% and T-Mobile gained 5.49%.
The pan-European STOXX 600 index .STOXX lost 1.04% and
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
0.39%.
On Wall Street, the Dow Jones Industrial Average .DJI fell
76.15 points, or 0.3%, to 25,687.85. The S&P 500 .SPX lost
12.85 points, or 0.45%, to 2,846.68 and the Nasdaq Composite
.IXIC dropped 95.13 points, or 1.22%, to 7,721.15.
The dollar was little changed but maintained last week's
gains as investors held off on big moves while awaiting
developments in U.S-China trade negotiations and for insight on
Wednesday of the Fed's thinking on interest-rate policy with the
release of the minutes from the Fed's last policy meeting.
The dollar index .DXY fell 0.08%, with the euro EUR= up
0.12% to $1.1169. The Japanese yen JPY= weakened 0.09% versus
the greenback at 109.96 per dollar.
U.S. Treasury yields slipped, with long-dated debt falling
for a second straight session as risk appetite diminished amid
the ongoing U.S.-Sino trade tensions.
Volume was generally light, with very little economic data
scheduled this week. The highlight is expected to be the release
on Wednesday of the Fed's minutes from its last monetary policy
meeting. Analysts do not expect surprises from the minutes.
The benchmark 10-year U.S. Treasury note US10YT=RR fell
2/32 in price to yield 2.3997%.
Huawei, the world's largest telecoms equipment maker, was
officially added to a trade blacklist by the Trump
administration on Thursday, escalating the already bitter trade
war, while China on Monday accused the United States of
harboring "extravagant expectations" for a trade deal.

Oil prices rose to multi-week highs as the Organization of
the Petroleum Exporting Countries indicated it was likely to
maintain production cuts that have helped boost prices, while
escalating Middle East tensions provided further support.
Brent crude futures LCOc1 rose 38 cents to $72.59 a barrel
and U.S. West Texas Intermediate crude futures CLc1 gained 56
cents to $63.32 a barrel.