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Wall Street stocks dip

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Benchmark 10-year yields lower

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Europe's STOXX down 0.3%

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Gold climbs, dollar index weakens

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Oil prices climb

(Updates with U.S. markets, recasts headline, adds analyst

comment)

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 as summer demand failed to surge.

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 1.1%, while Japan's Nikkei fell 1%.

On Wall Street, all three main indexes were trading lower,

led by losses in consumer discretionary, communication services

and technology stocks.

Tesla's shares slumped nearly 12% 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 ), were all down between 1.9% and 4.5%.

The Dow Jones Industrial Average fell 0.76% to

40,051.06, the S&P 500 lost 1.53% to 5,470.78 and the

Nasdaq Composite lost 2.37% to 17,570.73.

The pan-European STOXX 600 index was down 0.54% to

512.84 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 snapped three straight losing sessions on

Wednesday 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 for September rose 0.41% to

$81.33 a barrel. U.S. West Texas Intermediate crude for

September increased 0.56% to $77.89 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 fell 1.4

basis points to 4.225%.

"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 rose as the dollar slipped. Spot gold

added 0.7% to $2,426.00 an ounce. U.S. gold futures

gained 0.68% to $2,421.00 an ounce

The Japanese yen was 1.46% firmer against the

greenback at 153.35 per dollar. In cryptocurrencies, bitcoin

gained 1.54% to $66,854.94. Ethereum declined

1.23% to $3,440.30.

($1 = 155.3600 yen)