(Adds close of U.S. markets)
* Investors watch Japan, UK, U.S. central banks
* Tech decline pulls down Wall Street, global equities
* Euro recovers ground against the dollar
* Oil prices rise on tighter supply expectationsBy Herbert LashNEW YORK, July 30 (Reuters) - A gauge of global equitymarkets fell on Monday, pulled down by a sell-off in U.S.technology heavyweights, while the dollar slipped against theeuro on Monday ahead of several central bank monetary policymeetings later this week.Most major currencies stuck to narrow trading ranges aheadof central bank decisions. The Bank of Japan ends a two-daymeeting on Tuesday, the U.S. Federal Reserve concludes itspolicy meeting on Wednesday, and the Bank of England is expectedto raise interest rates on Thursday.Shares in Europe fell, led by a 2.9 percent decline insoftware maker SAP SE and a 2.5 percent drop in Frenchindustrial gases company Air Liquide . The FTSEurofirst300 index of leading European shares closed down 0.3percent.
MSCI's all-country world stock index fell0.37 percent on weakness in the so-called U.S. FAANG group:Facebook , Amazon.com , Apple , Netflix and Google parent Alphabet .
Wall Street stocks also closed down on the tech sell-off,which included Microsoft as another big decliner.The Dow Jones Industrial Average fell 144.23 points,or 0.57 percent, to 25,306.83. The S&P 500 lost 16.22points, or 0.58 percent, to 2,802.6 and the Nasdaq Composite dropped 107.42 points, or 1.39 percent, to 7,630.00.The technology index tumbled 1.78 percent asdisappointing results spurred concerns about future growth for asector that has led U.S. equities to record highs.
"There's a lot of money and speculation piled into the FAANGstocks, and now that money is coming out," said Wayne Kaufman,chief market analyst at Phoenix Financial Services in New York."It's money coming out of a crowded trade," he said.
Industrials, energy and materials led gainers on WallStreet, with Caterpillar raising its full-year outlookafter second-quarter earnings nearly doubled and beatexpectations, helped by robust global demand for its equipment. A revival in global growth may lift stocks even as techshares stop leading the market higher, said Michael Arone, chiefinvestment strategist at State Street Global Advisors in Boston."You're seeing a change in leadership in the market, andthat's the underlying story here. Energy, financials, materialsand industrials are the early leaders," Arone said.The S&P telecommunications services index rose1.95 percent and the S&P energy sector jumped 0.84percent as oil prices gained. Investors remained cautious overthe supply outlook and a potential hit to global output due toU.S. sanctions on Iran. U.S. crude rose $1.44 to settle at $70.13 a barrelwhile Brent settled up 68 cents at $74.97.The dollar slipped the most against the euro, with thecommon currency 0.41 percent higher as it recovered from itsweakest weekly performance against the greenback in six weeks.The euro tumbled last week after the European Central Bankreaffirmed that rates would stay low through next year's summer. Analysts said the euro rebounded largely because tradersfelt it had been oversold last week.
The dollar index fell 0.33 percent, while theJapanese yen retreated slightly, slipping 0.04 percentversus the greenback to 111.07 per dollar. The euro roseto $1.1703.Euro zone government bond yields rose after a strong Italianauction boosted demand for Italian debt at the expense ofhigher-rated markets in the bloc. Expectations for the upcoming Bank of Japan meeting alsopressured yields, analysts said, along with German and Spanishinflation data that remained slightly above the ECB's pricestability target in July. Germany's 10-year government bond yield , thebenchmark for the euro zone, rose more than 4 basis points to asix-week high of 0.46 percent.Yields on U.S. Treasury bonds rose, with the benchmark10-year at a six-week high, as investors sold U.S. governmentbonds on growing speculation that the BOJ may adjust itsultra-loose monetary policy at its meeting.
U.S. benchmark 10-year notes were down 3/32 inprice to yield 2.9747 percent.Gold steadied ahead of this week's Fed meeting, which couldgive clues about the outlook for U.S. interest rates and thedollar, key factors for precious metals prices.U.S. gold futures for August delivery settled down$1.70 at $1,221.30 per ounce.<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^GRAPHIC: MSCI, Nikkei FAANG market cap ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Herbert Lash, additional reporting by StephenCulp in New York, Editing by Rosalba O'Brien and David Gregorio)
Messaging: herb.lash.reuters.com@reuters.net))