* European stocks: https://tmsnrt.rs/2YHThhg
* Strong U.S. payrolls temper Fed rate cut expectations
* Deutsche Bank shares fall on overhaul move
* Turkish lira near 2-week lows on central bank shakeup
(Updates to U.S. markets open, changes byline, dateline,
previous LONDON)
By April Joyner
NEW YORK, July 8 (Reuters) - Stocks around the world fell on
Monday after strong U.S. job gains tempered expectations the
Federal Reserve will deliver a large interest rate cut.
On Wall Street, U.S. equities continued their slide from
Friday as hopes of a steep Fed rate cut faded. They were also
weighed by losses in shares of Apple Inc AAPL.O , following an
analyst downgrade, and Boeing Co BA.N , after a Saudi Arabian
airline said it would not proceed with an order for its jets.
European stocks edged lower, with the STOXX .STOXX down
0.1%, as Deutsche Bank's DBKGn.DE announcement that it would
cut 18,000 jobs around the world in a restructuring plan dragged
down bank shares. MSCI's gauge of emerging market equities .MSCIEF fell 1.2%
as Asian shares closed lower and the dollar edged up in reaction
to dampened expectations for a sharp Fed rate cut.
U.S. investment bank Morgan Stanley's decision to reduce its
exposure to global equities due to misgivings about the ability
of policy easing to offset weaker economic data also weighed on
investor sentiment.
Yet U.S. Treasury debt yields fell, retreating from their
gains on Friday in response to U.S. employment data.
"There's a growing skepticism about the Fed's need to lower
rates. But the bond market is up again, which means yields are
down, which would contradict that," said Tim Ghriskey, chief
investment strategist at Inverness Counsel in New York.
"Certainly, if the (U.S.-China) trade issue is prolonged, we
should continue to see economic weakness in the U.S., and that's
encouraging the bond market to forecast more rate cuts."
The Dow Jones Industrial Average .DJI fell 123.53 points,
or 0.46%, to 26,798.59, the S&P 500 .SPX lost 15.1 points, or
0.50%, to 2,975.31 and the Nasdaq Composite .IXIC dropped
66.89 points, or 0.82%, to 8,094.91.
Benchmark 10-year U.S. Treasury notes US10YT=RR last rose
6/32 in price to yield 2.0251%, from 2.044% late on Friday.
CURRENCIES AND GEOPOLITICS
In currency markets, the Turkish lira TRY= weakened 1.7%
against the dollar after President Tayyip Erdogan dismissed
central bank governor Murat Cetinkaya, whose four-year term was
due to run until 2020, and replaced him with his deputy Murat
Uysal. Erdogan sacked Cetinkaya for refusing the government's
repeated demands for interest rate cuts, laying bare differences
over the timing of cuts to revive the recession-hit economy.
The dollar index .DXY rose 0.07%, while the euro EUR=
dropped 0.10% against the greenback to $1.1213. After hitting a six-month low to the dollar on Friday as a
result of poor economic data and a rise in expectations that the
Bank of England will cut interest rates, the British pound
GBP= edged down 0.12% to $1.2508.
Geopolitics were also in focus in commodity markets
following news on Sunday that Iran will boost its uranium
enrichment in breach of a cap set by a landmark 2015 nuclear
deal. U.S. crude CLc1 rose 0.73% to $57.93 per barrel and Brent
crude LCOc1 gained 0.4% to $64.49 per barrel.