GLOBAL MARKETS-Stocks fall from 20-month highs on trade talk concerns

* Report stirs doubts on U.S.-China trade deal
* Dollar eases after Fed cuts interest rates
* U.S. Treasuries, euro zone bond yields fall
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

By Herbert Lash
NEW YORK, Oct 31 (Reuters) - World stock markets slid from
20-month highs on Thursday as uncertainty about a potential
U.S.-China trade deal offset strong results from Apple and
Facebook, while the dollar eased as investors mulled whether the
Federal Reserve will cut rates further.
Chinese officials have doubts about reaching a comprehensive
long-term trade deal with Washington and U.S. President Donald
Trump, Bloomberg reported, citing unidentified sources.
The trade spat between the world's largest economies has
been a major focal point for investors as it has disrupted
supply chains and roiled financial markets for more than a year.
MSCI's gauge of equity performance in 47 countries
.MIWD00000PUS slid 0.37% from highs last reached in February
2018.
The dollar fell to a 10-day low against a basket of major
currencies after the Fed cut rates on Wednesday.
Investors remain concerned about a U.S. slowdown as the
trade war continues, which could force the Fed's hand.
"If things were to go negative, they are more likely to ease
than raise interest rates," said Steven Wieting, chief economist
and investment strategist at Citi Private Bank in New York.
However, the underlying story has been the U.S. economy's
ability to outlast the downturn in manufacturing output, a
development that has been underrated by the market, he said.
"It has further to go; just the fact we can absorb the
shocks that we have," Wieting said. "Production is going to go
from declining to rebounding. That's what is going to happen
with earnings as well."
European stocks fell. The pan-European STOXX 600 index
.STOXX lost 0.30% and the FTSEurofirst 300 index .FTEU3 of
leading regional shares fell 0.27%.
In late-morning trading on Wall Street, the Dow Jones
Industrial Average .DJI fell 173.54 points, or 0.64%, to
27,013.15. The S&P 500 .SPX lost 12.2 points, or 0.40%, to
3,034.57 and the Nasdaq Composite .IXIC dropped 11.91 points,
or 0.14%, to 8,292.07.
MSCI's emerging market index .MSCIEF slid 0.03%.
The dollar index .DXY fell 0.24%, with the euro EUR=
down 0.11% to $1.1136. The Japanese yen JPY= strengthened
0.62% versus the greenback at 108.19 per dollar.
Euro zone bond yields fell sharply, on track for their
sharpest daily fall in October, after the Fed cut interest rates
on Wednesday and as the report on U.S.-China trade tensions
drove demand for safe-haven assets.
Yields on Germany's benchmark 10-year bund DE10YT=RR fell
to a low of -0.419% and were set for their biggest daily fall in
October, the same as most other euro zone government bonds.
The price of benchmark 10-year U.S. Treasury notes
US10YT=RR rose 28/32 to push its yield down to 1.6997%.
Oil prices fell. Brent crude futures LCOc1 fell 51 cents
to $60.10 a barrel, while U.S. West Texas Intermediate (WTI)
crude futures CLc1 fell $1.24 to $53.82 a barrel.