* MSCI world index falls 0.2%
* Hong Kong violence escalates in rare daytime clashes
* Hang Seng index loses 3%
* European shares down 0.2%
* Gold, Japanese yen gain
* Trade war worries also weigh
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Tom Wilson
LONDON, Nov 11 (Reuters) - Shares across the globe fell on
Monday, buffeted by escalating violence in Hong Kong that pushed
Asian stocks to their worst day since August and stoked demand
for the safe-haven yen and gold.
In the 24th straight week of pro-democracy unrest, Hong Kong
police shot and wounded a protester as the Chinese-ruled
territory saw rare working-hours violence. The MSCI world equity index .MIWD00000PUS , which tracks
shares in 47 countries, slipped 0.2%, with Hong Kong's Hang Seng
index .HSI falling 2.7% and leading losses across Asia.
There, MSCI's widest index of Asia-Pacific shares outside
Japan .MIAPJ0000PUS fell 1.2% from six-month highs to set a
course for its worst day since late August. Chinese blue chips
.CSI300 dropped 1.8%.
The nerves spread to Europe, too.
The broad Euro STOXX 600 .STOXX fell 0.2%, with London
shares .FTSE slipping 0.6% ahead of British GDP data . Wall
Street futures gauges were also set to suffer, suggesting losses
of around 0.4% ESc1 .
Some investors said markets risked being hit by any further
escalation of the violence in Hong Kong, where protesters are
angry about what they see as police brutality and meddling by
Beijing in the freedoms guaranteed to the former British colony.
"At some stage I think it will be likely that there will be
a more fully-fledged crackdown," said Stéphane Barbier de la
Serre, a strategist at Makor Capital Markets.
"And if you see a crackdown, you could see markets
collapsing. For these reasons markets are complacent."
The violence in Hong Kong sent investors running for assets
perceived as safe havens and away from riskier currencies.
Gold XAU= rose 0.4%, rebounding from a three-month low
touched on Friday to reach $1,463.49 per ounce.
The Japanese yen JPY=EBS , which often strengthens in
times of global political or economic turmoil, strengthened 0.3%
against the dollar. China's yuan, in contrast, weakened 0.3% to
7 per dollar in offshore trade CNH=EBS .
TRADE WAR
Investors were also focused on the U.S-China trade talks.
After a bout of optimism last week over prospects for
Washington and Beijing to reach an initial deal that would quell
the worst of the 18-month old dispute, doubts over prospects for
a resolution gnawed again.
On Saturday, U.S. President Donald Trump said talks with
China had moved more slowly than he would have liked. Trump said
reports that the United States was willing to lift tariffs were
incorrect, adding that Beijing wanted a deal more than he did.
Still, some market players said Trump's comments fitted an
established pattern of optimistic rhetoric from the U.S.
president being followed by a more sceptical tone.
A deal was still likely, they said.
"It's the usual two steps forward and one step backwards,"
said Adam Cole, head of FX strategy at RBC Capital Markets.
"We are probably still moving in the direction (of a deal),
and that's the way the market is priced on balance ... the
direction is still a positive one."
The uncertainty over trade weighed on commodities markets
commodities.
Oil lost nearly 1% on Monday, with concerns over trade
looming and worries on oversupply weighed on the market. Brent
crude was down 54 cents, or 0.9%, at $61.97 by 0745 GMT.
In Europe, Spanish government bond yields held their ground
after a weekend election delivered a deeply riven parliament and
set the stage for difficult talks to form a new ruling
coalition. The far-right surged in the poll, the fourth in as many
years. Spain's 10-year bond yield was flat at 0.40% ES10YT=RR .
Most other major bond yields across the euro zone were
little changed on Monday, holding below highs reached on Friday
as investors showed scant appetite for risk in the wake of the
Hong Kong violence.
U.S. bond markets were closed on Monday for the Veteran's
Day holiday.
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