GLOBAL MARKETS-Stocks sluggish, dollar near four-month highs as risk appetite wanes

* Dollar index hits highest since Nov. 2020
* European stocks open lower
* U.S. de-listing threat rattles China tech
* Oil falls but Suez Canal remains a concern
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

By Tom Arnold and Stanley White
LONDON/TOKYO, March 25 (Reuters) - Global equities
languished close to two-week lows on Thursday, while the dollar
cruised to near a four-month high against the euro as nervy
investors worried that Europe's COVID-19 response was falling
behind that in the United States.
European markets opened lower, with the STOXX index of 600
European shares .STOXX down 0.1% in early trade following a
U.S selloff overnight and not helped by data showing the biggest
rise since Jan. 9 in new confirmed coronavirus cases in Germany.
The number of people with COVID-19 in French intensive care
meanwhile set a high for 2021. Extended lockdowns and worries about the pace of
vaccinations across Europe hobbled the euro, which was down 0.1%
against the dollar, at $1.1807 EUR=EBS .
The dollar index =USD had hit its highest since November
2020 overnight, at 92.697, breaking its 200-day moving average.
"The dollar is absolutely critical," said James Athey,
investment director at Aberdeen Standard Investments.
"While the 'reflation trade' has been largely driven by U.S.
fiscal stimulus and thus growth and inflation expectations, it
has also been driven by rising input prices coming from higher
commodity prices.
"If the dollar starts rallying that becomes a problem. It
means commodity weakness and emerging market weakness and it
starts to provide a disinflationary countervailing narrative."
MSCI's gauge of world stocks .MIWD00000PUS was 0.03%
lower, down for a second day and close to its lowest level in
more than two weeks.
Its broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS fell 0.2%, bringing it closer to wiping out all
the gains it has posted so far this year.
Weighing on sentiment was a selloff in Chinese technology
shares due to concerns they will be delisted from U.S. bourses
and worries about a semiconductor shortage.
In Hong Kong, companies with U.S. listings led declines.
JD.com 9618.HK lost 3.57% and Alibaba 9988.HK fell 3.91%.
China's blue-chip CSI300 index .CSI300 edged 0.05% lower,
to its lowest close since Dec. 11, weighed down by jitters about
policy tightening and rising tensions between China and Western
countries over allegations of human rights abuses in Xinjiang.
U.S. stock futures pointed to a steadier start on Wall
Street after Wednesday's tumble, with E-minis ESc1 0.3%
firmer.
The U.S. securities regulator is introducing measures that
would kick foreign firms off U.S. stock exchanges if they do not
comply with U.S. auditing standards, and require them to
disclose any government affiliations -- measures widely expected
to hit Chinese companies. As well as concerns about extended economic lockdowns in
Europe, disruptions to the distribution of COVID-19 vaccinations
and potential U.S. tax hikes also dimmed investor sentiment.
"Rising interest rates, uncertainty of tax policy, concern
over inflation all remain top-of-mind for investors. However,
none of these themes speak to rising appetite for risk," said
Peter Kenny of Kenny's Commentary LLC and Strategic Board
Solutions LLC in Denver.
U.S. crude CLc1 fell 1.6% to $60.22 per barrel, and Brent
LCOc1 fell 1.3% to $63.56 a barrel, giving back some gains
made the previous day after one of the world's largest container
ships ran aground in the Suez Canal, blocking the vital shipping
lane. Benchmark 10-year U.S. Treasury yields US10YT=RR rose to
1.6209%, supported by positive data on the U.S. manufacturing
sector.
Investors have focused on the 10-year Treasury yield,
pondering if there is room for long-term interest rates to run,
said David Kelly, chief global strategist at JPMorgan Asset
Management. "We know that the economy is primed to begin to really
accelerate in the second quarter," Kelly said. "But we haven't
seen that acceleration yet so that's what we're waiting for."
Germany's 10-year government bond yield DE10YT=RR was down
one basis point to 0.37%.

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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country World Index Market Cap http://tmsnrt.rs/2EmTD6j
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