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Wall Street stocks dip

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Benchmark 10-year yields edge higher

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Europe's STOXX close down 0.61%

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Gold pare gains, dollar index weakens

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Oil prices settle higher

(Updates with U.S. markets close, oil settlement)

By Lawrence White and Chibuike Oguh

LONDON/NEW YORK, July 24 (Reuters) - Stocks sagged

worldwide on Wednesday as earnings from Tesla and European

luxury brands disappointed, while oil prices edged higher after

trading near-six week lows due to concerns over weak global

demand.

The U.S. dollar edged lower, with traders watching out for

an inflation reading on Friday and a Federal Reserve meeting

next week, while the yen climbed to a seven-week high ahead of a

central bank meeting next week.

"I think the big story is clearly the earnings front and

you've kind of seen reports all over the map, with Tesla

probably the disappointing one," said Garrett Melson, portfolio

strategist at Natixis Investment Managers Solutions in Boston.

MSCI's broadest index of Asia-Pacific shares outside Japan

lost 1.7%, while Japan's Nikkei fell 1%.

On Wall Street, all three main indexes finished lower, led

by losses in technology, consumer discretionary and

communication services stocks.

Tesla's shares slumped 12.3% after it reported its

lowest profit margin in five years amid waning demand for

electric vehicles. Other so-called "Magnificent Seven" stocks

including, Nvidia ( NVDA ), Alphabet, Amazon ( AMZN )

and Microsoft ( MSFT ), closed down between 2.8% and 6.8%.

The Dow Jones Industrial Average fell 1.25% to

39,853.87, the S&P 500 lost 2.31% to 5,427.13 and the

Nasdaq Composite lost 3.64% to 17,342.41.

The pan-European STOXX 600 index fell 0.61% to

512.30 points. The world's biggest luxury group LVMH

had reported slower sales growth as Chinese shoppers rein in

their spending.

"It's the curse of high expectations, that's what the market

was coming into earnings season with, especially for the tech

companies that have been the darlings of the market", said James

St. Aubin, chief investment officer at Sierra Mutual Funds in

Santa Monica, California.

RATE CUT EXPECTATIONS

Subdued stock trading globally was symptomatic of markets

looking for direction, with traders digesting a range of themes

including the U.S. election, expectations of rate cuts and weak

corporate earnings reports.

Oil prices settled higher thanks to falling U.S. crude

inventories and growing supply risks from wildfires in Canada,

but still sat near month-and-a-half lows amid lacklustre demand.

Brent crude futures closed 0.9% higher at $81.71 a

barrel. U.S. West Texas Intermediate crude rose 0.8% to

$77.59 per barrel.

U.S. GDP data on Thursday and personal consumption

expenditure data - the Fed's favoured measure of inflation - on

Friday could help investors calibrate their expectations of when

interest rates might be cut.

Markets are pricing in 62 basis points of easing this year,

with a cut in September priced in at 95%, the CME FedWatch tool

showed. The benchmark U.S. 10-year Treasury yield

was lower for a second straight session. The yield rose 4.9

basis points to 4.288%.

"The rotation is in full force. Magnificent 7 earnings

growth are decelerating, while un-magnificent 493 growth are

accelerating," said Thomas Hayes, chairman at Great Hill Capital

in New York, in a statement. "Fed cut will add fuel to this new

trend for cyclicals, small caps and dividend stocks picking up

the mantle," he said.

Gold prices slipped after paring early gains. Spot gold

lost 0.45% to $2,398.45 an ounce, while U.S. gold futures

settled 0.3% higher at $2,415.70.

The Japanese yen strengthened 1.06% against the

greenback at 153.97 per dollar. In cryptocurrencies, bitcoin

gained 0.01% at $65,848.00. Ethereum declined

3.18% at $3,372.50.

($1 = 155.3600 yen)