GLOBAL MARKETS-Trade data lifts U.S. dollar; stocks flat on mixed earnings

* Fears Chinese trade surplus could inflame dispute

* Dollar rises, gold falls on trade war concerns

* U.S., European stocks steady

* Oil drops 4 percent this week

By Hilary Russ

NEW YORK, July 13 (Reuters) - The safe-haven U.S. dollar touched to a two-week high on Friday after data showed a record Chinese trade surplus, while Wall Street stocks were little changed on mixed bank earnings and gains in industrials.

Stocks in Europe edged higher. Gold slipped to seven-month lows on the firmer dollar and remarks Thursday from U.S. Treasury Secretary Steven Mnuchin, who said that the United States and China might reopen trade talks, briefly easing concerns about an escalating trade dispute between the two countries.

"Despite the ominous headlines about a trade war with China, we're comfortable with U.S. equities at current prices amid favorable macro trends and surging earnings growth," said Mike Bailey, Director of Research at FBB Capital Partners in Maryland.

The Dow Jones Industrial Average .DJI rose 86.11 points, or 0.35 percent, to 25,011, the S&P 500 .SPX gained 4.59 points, or 0.16 percent, to 2,802.88 and the Nasdaq Composite .IXIC added 16.66 points, or 0.21 percent, to 7,840.57. corporate results from the three big Wall Street banks put some of this week's earnings optimism in check.

The greenback got a boost from data showing China's trade surplus with the United States swelled to a record in June, which could further inflame a trade dispute with Washington. comments on the U.S. economy from Federal Reserve Chairman Jerome Powell also stoked demand for the dollar, analysts said. a basket of major currencies, the dollar index .DXY rose 0.05 percent.

Earlier Friday the dollar touched its highest level since June 29.

Spot gold XAU= dropped 0.4 percent to $1,241.92 an ounce. China has vowed to retaliate against the proposed new U.S. tariffs - 10 percent on $200 billion of Chinese goods - the lack of a specific response to date has sparked global relief.

Shanghai's stock index .SSEC edged lower and China's yuan headed for its fifth straight week of losses CNH=EBS .

The yield curve on U.S. Treasuries once again reached its flattest level in 11 years on Friday in low-volume trading. 10-year notes US10YT=RR last rose 4/32 in price to yield 2.8381 percent, from 2.853 percent late on Thursday.

In commodity markets, oil prices had a wild week of price swings, with both the main benchmarks at one point suffering heavy losses as traders focused on the return of Libyan oil to the market. so, oil rose on Friday. U.S. crude CLcv1 rose 0.58 percent to $70.74 per barrel and Brent LCOcv1 was last at $75.21, up 1.02 percent on the day.

Copper eased about half a percent on Friday and was poised for a fifth straight weekly fall, its longest decline since 2015, on concerns about weaker demand in face of the U.S.-China trade dispute. CMCU3 GRAPHIC-Global assets in 2018

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http://tmsnrt.rs/2jvdmXl GRAPHIC-Emerging markets in 2018

http://tmsnrt.rs/2ihRugV GRAPHIC-World FX rates in 2018

http://tmsnrt.rs/2egbfVh GRAPHIC-MSCI All Country World Index Market Cap

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