Stocks and dollar dip as Trump's spending bill passes, trade deal deadline nears

• US stock futures decline as focus shifts to spending bill
• Trade deals elusive ahead of higher tariffs on July 9
• Trading thinned by Wall Street, Treasuries holidays for July 4

LONDON, July 4 (Reuters) - Stocks slipped on Friday as U.S. President Donald Trump got his signature tax cut bill over the line and attention turned to his July 9 deadline for countries to secure trade deals with the world's biggest economy.

The dollar also fell against major currencies with U.S. markets already shut for the holiday-shortened week, as traders considered the impact of Trump's sweeping spending bill which is expected to add an estimated $3.4 trillion to the national debt.

The pan-European STOXX 600 index .STOXX fell 0.8%, driven in part by losses on spirits makers such as Pernod Ricard PERP.PA and Remy Cointreau RCOP.PA after China said it would impose duties of up to 34.9% on brandy from the European Union starting July 5.

U.S. S&P 500 futures EScv1 edged down 0.6%, following a 0.8% overnight advance for the cash index to a fresh all-time closing peak. Wall Street is closed on Friday for the Independence Day holiday.

Trump said Washington will start sending letters to countries on Friday specifying what tariff rates they will face on exports to the United States, a clear shift from earlier pledges to strike scores of individual deals before a July 9 deadline when tariffs could rise sharply.

Investors are "now just waiting for July 9," said Tony Sycamore, an analyst at IG, with the market's lack of optimism for trade deals responsible for some of the equity weakness in export-reliant Asia, particularly Japan and South Korea.

At the same time, investors cheered the surprisingly robust jobs report on Thursday, sending all three of the main U.S. equity indexes climbing in a shortened session.

"The U.S. economy is holding together better than most people expected, which suggests to me that markets can easily continue to do better (from here)," Sycamore said.

Following the close, the House narrowly approved Trump's signature, 869-page bill, which averts the near-term prospect of a U.S. government default but adds trillions to the national debt to fuel spending on border security and the military.

TRADE THE KEY FOCUS IN ASIA

Trump said he expected "a couple" more trade agreements after announcing a deal with Vietnam on Wednesday to add to framework agreements with China and Britain as the only successes so far.

U.S. Treasury Secretary Scott Bessent said earlier this week that a deal with India is close. However, progress on agreements with Japan and South Korea, once touted by the White House as likely to be among the earliest to be announced, appears to have broken down.

The U.S. dollar index =USD had its worst first half since 1973 as Trump's chaotic roll-out of sweeping tariffs heightened concerns about the U.S. economy and the safety of Treasuries, but had rallied 0.4% on Thursday before retracing some of those gains on Friday.

As of 1100 GMT it was down 0.1% at 96.96.

The euro EUR=EBS added 0.2% to $1.1773, while sterling GBP=D3 held steady at $1.3662.

The U.S. Treasury bond market is closed on Friday for the holiday, but 10-year yields US10YT=RR rose 4.7 basis points (bps) to 4.34%, while the 2-year yield US2YT=RR jumped 9.3 bps to 3.882%.

Gold XAU= firmed 0.4% to $3,336 per ounce, on track for a weekly gain as investors again sought refuge in safe-haven assets due to concerns over the U.S.'s fiscal position and tariffs.

Brent crude futures LCOc1 fell 64 cents to $68.17 a barrel, while U.S. West Texas Intermediate crude CLc1 likewise dropped 64 cents to $66.35, as Iran reaffirmed its commitment to nuclear non-proliferation.