(Updates with close of European markets)
* MSCI World index poised for best month since 2006
* Solid earnings underpin stocks
* Oil climbs on output deal hope
* Eurozone inflation, growth accelerates
* Oil set for 2nd week of losses on oversupply
By Chuck Mikolajczak
NEW YORK, April 28 World stock markets dipped on
Friday, with U.S. equities losing ground after a soft reading on
first-quarter economic growth, while the euro strengthened as
euro zone inflation rose to hit the European Central Bank's
The U.S. economy grew at a 0.7 percent annual rate in the
first quarter, its weakest pace in three years, amid tepid
consumer spending and as businesses invested less on
inventories, in a potential setback to President Donald Trump's
promise to boost growth.
The lackluster number sent equity indexes on Wall Street
slightly lower, although strong earnings from Google parent
Alphabet, which was up 4.1 percent, and Amazon
, which rose 1.4 percent, curbed losses on the benchmark
S&P index and briefly pushed the Nasdaq to a record.
"The GDP numbers today are questioning the robustness of the
economy and throughout the week we've seen the impact of doubts
whether the Trump administration can implement its fiscal
policies," said Mohannad Aama, managing director of Beam Capital
Management in New York.
First-quarter earnings are currently expected to grow by
13.6 percent, according to Thomson Reuters data, the best
performance since 2011.
The Dow Jones Industrial Average fell 36.84 points,
or 0.18 percent, to 20,944.49, the S&P 500 lost 4.61
points, or 0.19 percent, to 2,384.16 and the Nasdaq Composite
dropped 1.74 points, or 0.03 percent, to 6,047.20.
The Dow was on track for its best week since early December
while the Nasdaq was poised for a sixth-month winning streak,
its longest since 2013.
European shares eased as investors took profits, but closed
out their strongest week since December as political worries
ebbed and brokers forecast strong earnings growth would underpin
The pan-European FTSEurofirst 300 index lost 0.23
percent, up 2.4 percent for the week, and MSCI's gauge of stocks
across the globe shed 0.11 percent.
At six straight months of gains, MSCI's index was set to
notch its longest monthly winning streak since 2006.
Inflation blew past expectations in Europe to hit a
three-year high, keeping pressure on the European Central Bank
to start dialing back its stimulus measures.
Euro zone bond yields rose, with the yield on 10-year
benchmark German government bonds hitting a
session high of 0.361 percent, and the euro strengthened
against the dollar, up 0.29 percent to $1.0904.
U.S. Treasury debt yields rose across the board on Friday
after the GDP data. Benchmark 10-year notes last
fell 1/32 in price to yield 2.3 percent, from 2.296 percent late
In commodities, oil prices advanced after a slide to a
one-month low the previous day spurred buying ahead of an OPEC
meeting next month at which producers could prolong output
curbs. Both Brent and U.S. crude were on track for their second
straight weekly and monthly declines.
U.S. crude rose 0.39 percent to $49.16 per barrel
and Brent was last at $51.98, up 0.31 percent on the
(Additional reporting by Tanya Agrawal; Editing by Bernadette