* Report stirs doubts on U.S.-China trade deal
* Dollar eases after Fed cuts interest rates
* U.S. Treasuries, euro zone bond yields fall
* Graphic: World FX rates in 2019 tmsnrt.rs/2egbfVh
By Herbert Lash
NEW YORK, Oct 31 (Reuters) - World stock markets slid from 20-month highs on Thursday as uncertainty about a potential U.S.-China trade deal offset strong results from Apple and Facebook, while the dollar eased as investors mulled whether the Federal Reserve will cut rates further.
Chinese officials have doubts about reaching a comprehensive long-term trade deal with Washington and U.S. President Donald Trump, Bloomberg reported, citing unidentified sources.
The trade spat between the world's largest economies has been a major focal point for investors as it has disrupted supply chains and roiled financial markets for more than a year.
MSCI's gauge of equity performance in 47 countries slid 0.37% from highs last reached in February 2018.
The dollar fell to a 10-day low against a basket of major currencies after the Fed cut rates on Wednesday.
Investors remain concerned about a U.S. slowdown as the trade war continues, which could force the Fed's hand.
"If things were to go negative, they are more likely to ease than raise interest rates," said Steven Wieting, chief economist and investment strategist at Citi Private Bank in New York.
However, the underlying story has been the U.S. economy's ability to outlast the downturn in manufacturing output, a development that has been underrated by the market, he said.
"It has further to go; just the fact we can absorb the shocks that we have," Wieting said. "Production is going to go from declining to rebounding. That's what is going to happen with earnings as well."
European stocks fell. The pan-European STOXX 600 index lost 0.30% and the FTSEurofirst 300 index of leading regional shares fell 0.27%.
In late-morning trading on Wall Street, the Dow Jones Industrial Average fell 173.54 points, or 0.64%, to 27,013.15. The S&P 500 lost 12.2 points, or 0.40%, to 3,034.57 and the Nasdaq Composite dropped 11.91 points, or 0.14%, to 8,292.07.
MSCI's emerging market index slid 0.03%.
The dollar index fell 0.24%, with the euro down 0.11% to $1.1136. The Japanese yen strengthened 0.62% versus the greenback at 108.19 per dollar.
Euro zone bond yields fell sharply, on track for their sharpest daily fall in October, after the Fed cut interest rates on Wednesday and as the report on U.S.-China trade tensions drove demand for safe-haven assets.
Yields on Germany's benchmark 10-year bund fell to a low of -0.419% and were set for their biggest daily fall in October, the same as most other euro zone government bonds.
The price of benchmark 10-year U.S. Treasury notes rose 28/32 to push its yield down to 1.6997%.
Oil prices fell. Brent crude futures fell 51 cents to $60.10 a barrel, while U.S. West Texas Intermediate (WTI) crude futures fell $1.24 to $53.82 a barrel.
Reporting by Herbert Lash; Editing by Dan Grebler