* GRAPHIC-European stocks: https://tmsnrt.rs/2YHThhg
* Strong U.S. payrolls temper Fed rate cut expectations
* Deutsche Bank shares drop on overhaul move
* Turkish lira slides on central bank shakeup
(Updates to close of U.S. markets)
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 at the
end of July.
U.S. equities resumed their slide from Friday, when the June
employment data was released, as hopes of a steep Fed rate cut
faded. U.S. stocks were also weighed down 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. The STOXX 600 .STOXX ended
down 0.1% as Deutsche Bank's DBKGn.DE announcement that it
would cut 18,000 jobs around the world in a restructuring
dragged down bank shares. MSCI's gauge of emerging market equities .MSCIEF fell 1.3%
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.
Federal Reserve Chairman Jerome Powell is scheduled to give
testimony on monetary policy before Congress on Wednesday and
Thursday, which some investors expect will provide clues
regarding the likelihood of a rate cut from the U.S. central
bank when it meets at the end of the month.
"There's a tug of war," John Carey, managing director at
Amundi Pioneer Asset Management in Boston, said of U.S. economic
data. "The jobs numbers make it appear that there's not a need
for a rate cut, yet industrial activity remains sluggish."
The Dow Jones Industrial Average .DJI fell 115.98 points,
or 0.43%, to 26,806.14, the S&P 500 .SPX lost 14.46 points, or
0.48%, to 2,975.95 and the Nasdaq Composite .IXIC dropped
63.41 points, or 0.78%, to 8,098.38.
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
0.61%.
Benchmark 10-year U.S. Treasury notes US10YT=RR last fell
3/32 in price to yield 2.0528%, from 2.044% late on Friday.
CURRENCIES AND GEOPOLITICS
In currency markets, the Turkish lira TRY= weakened 1.9%
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 0.13%, while the euro EUR=
dropped 0.14% against the greenback to $1.1208. The British pound GBP= edged down 0.1% to $1.2511 after
hitting a six-month low against 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.
Geopolitics were in focus in oil markets following news on
Sunday that Iran would boost its uranium enrichment in breach of
a cap set by a landmark 2015 nuclear deal. On Monday Iran said
it had passed the 3.6% cap and may enrich at even higher levels.
Those developments were offset by concerns about slowing
economic growth. Brent crude futures LCOc1 fell 12 cents, or
0.19%, to settle at $64.11 a barrel, while U.S. crude futures
CLc1 rose 15 cents, or 0.26%, to settle at $57.66 a barrel.
Spot gold XAU= dropped 0.5% to $1,393.08 an ounce as the
dollar rose. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
GRAPHIC-European stocks: https://tmsnrt.rs/2YHThhg
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