(Updates with European markets, adds comments)

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Tariff deadline looms, with Fed, BOJ also meeting

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Global stocks hit record high this week on trade deal

optimism

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Alphabet earnings buoy Wall Street; Amazon, Apple, Meta

due next

week

By Naomi Rovnick and Kevin Buckland

LONDON/TOKYO July 25 (Reuters) - Investors cashed out of

highly valued global stocks on Friday and the dollar headed for

its biggest weekly drop in a month ahead of a crucial week for

markets that includes Donald Trump's tariff deadline and key

central bank meetings.

MSCI's global equity index retreated from an

all-time high and was 0.2% lower in early European trading while

Japan's Topix index ended the day 0.9% lower after

rising to a record on Thursday.

Europe's STOXX 600 share index also fell 0.5% in

early trade.

Ahead of the August 1 deadline for U.S. trade deals with Europe

and China, stock markets have been buoyed up by firm U.S.

economic data and framed the risk of tariffs hitting growth as a

reason to expect Federal Reserve rate cuts.

"Higher (U.S.) inflation will, in time, result in weaker

demand and weaker investment," UBS Wealth Management economist

Dean Turner said.

Van Luu, head of solutions strategy, fixed income and

foreign exchange at Russell Investments, said he was waiting for

a buying opportunity in U.S. Treasuries for this

reason.

"U.S. data looks astonishingly resilient," he said, but this

likely reflected a spending rush before tariffs pushed business

input costs and retail sticker prices higher.

RISK EVENTS

The past week saw U.S. trade agreements with Japan,

Indonesia and the Philippines, while deal talks continued with

South Korea.

Next week brings the next Fed interest rate meeting, the

closely watched monthly payrolls report, and earnings from

Amazon, Apple, Meta and Microsoft.

Trump has kept up pressure on Fed Chair Jerome Powell to cut

rates after a rare presidential visit to the central bank on

Thursday, although he said he did not intend to fire Powell, as

he has frequently suggested he would.

U.S. 10-year Treasury yields were steady at 4.41%

while two-year yields, which track monetary policy

bets, were also flat at 3.923%.

Robust earnings from Google parent Alphabet took

Wall Street's Nasdaq to a record high on Thursday but

futures trading signalled the tech-heavy index would

flatline at the start of cash trading in New York.

Contracts tracking the blue-chip S&P 500 index were

also flat in early European dealings.

The Bank of Japan has its own policy announcement on

Thursday, and Prime Minister Ishiba's Liberal Democratic Party

holds a meeting on the same day.

That's after the European Central Bank held rates steady on

Thursday, pausing its easing campaign as it waited to assess the

impact from U.S. tariffs.

The euro was steady against the dollar on Friday at $1.1745

, although German government debt sold off, with the

yield on benchmark 10-year Bunds up 5 basis points (bps) in

early dealings to 2.74%, the highest since March 28

.

Japanese government bond yields were steady on Friday at

about 1.6%, a level last seen in October 2008, having ratcheted

higher on concerns the political scale is tilting more towards

fiscal stimulus.

This came after big gains for opposition parties backing

consumption tax cuts in Sunday's upper house election. Pressure

is building on the more fiscally hawkish Ishiba to quit after

his coalition lost its majority in the vote, having done the

same in lower house elections last October.

Gold eased 0.3% to around $3,356 an ounce.

Brent crude futures gained 0.7% to $69.65 a barrel.