* Major U.S. stock indices open higher
* Focus turns to Fed meeting, U.S. GDP numbers
* Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
By Matt Scuffham and Tommy Wilkes
NEW YORK/LONDON, April 26 (Reuters) - Global stock markets
made moderate gains on Monday as increasing confidence about the
rapid recovery of economies from the COVID-19 pandemic offset
concerns about the speed of the market's rally.
The start to the week was quiet as investors refrained from
taking on large positions before a two-day meeting of the
Federal Reserve that will begin on Tuesday and the impending
release of U.S. quarterly gross domestic product data.
Investors have been ebullient in recent weeks, with Wall
Street hitting another intraday record high on Friday and
European shares not far off their own record highs.
In morning trading on Wall Street, the Dow Jones Industrial
Average .DJI rose 64.86 points, or 0.19%, to 34,108.35, the
S&P 500 .SPX gained 12.33 points, or 0.29%, to 4,192.5 and the
Nasdaq Composite .IXIC added 51.01 points, or 0.36%, to
14,067.81.
The pan-European STOXX 600 index .STOXX rose 0.32% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.39%.
Asian shares rallied. MSCI's broadest index of Asia-Pacific
shares outside Japan .MIAPJ0000PUS closed 0.58% higher, while
Japan's Nikkei .N225 rose 0.36%.
That MSCI's helped gauge of stocks across the globe
.MIWD00000PUS , which gained 0.39%.
Stocks - as well as most other risk assets - have ridden a
massive rally. The MSCI world index has registered only three
down months in the past 12 and is up nearly 5% this month and 9%
for the year as investors bet on a rapid post-pandemic economic
rebound turbocharged by vast government and central bank
stimulus.
Analysts, however, say stocks look a little over-valued and
that the rally will run into hurdles after setting such a
lightning pace and with so much of the economic recovery and
fiscal stimulus splurge already priced in.
"The real crux of the issue, however, is 'What's in the
price?' The year-to-date rally has increasingly eliminated
upside to our targets," noted Andrew Sheets, a strategist at
Morgan Stanley.
"Across four major global equity markets (the U.S., Europe,
Japan and emerging markets), only Japan is currently below our
end-2021 strategy forecast."
BOLSTER CONFIDENCE
Still, recent data pointing to a solid global economic
recovery has bolstered confidence and limited any investor
nervousness, as have strong corporate earnings and the continued
rollout of COVID-19 vaccinations in developed economies.
Early April manufacturing activity indicators last week
pointed to a robust start to the second quarter, with data
hitting record highs in the United States and signaling an end
to Europe's double-dip recession.
First-quarter U.S. gross domestic product data due later
this week is likely to show activity returned to pre-pandemic
levels, analysts said.
Most observers expect the Fed will stick to its pledge to
keep stimulus flowing until the economy has recovered
sufficiently and downplay the threat of rising inflation - any
suggestion otherwise could hit market confidence sharply.
"The equity market is happy that the Federal Reserve is
likely to continue with no new guidance on eventual tightening
of policy as it wants to react to outcomes rather than
anticipating them and believes that any inflationary rise in
coming months will prove transitory," said Steen Jakobsen, chief
investment officer at Saxo Bank.
In currencies, the dollar - which had benefited from rising
Treasury yields the past few months - fell 0.003%, with the euro
EUR= down 0.22% to $1.2072. Other major currencies were little
changed. JPY=EBS EUR=EBS
Bitcoin snapped a five-day losing streak with a 6.2% jump
BTC=BTSP . Cryptocurrencies fell on Friday on concern that U.S.
President Joe Biden's plan to raise capital gains taxes would
curb investments in digital assets.
Those tax proposals, while raising hackles among some
investors, caused only a temporary blip in stock markets' march
higher.
Government bond yields rose as investors dumped safer
assets.
Yields on U.S. Treasury benchmark 10-year notes US10YT=RR
last rose 3/32 in price to yield 1.5579%, from 1.567% late on
Friday.
Turkey's lira TRYTOM=D3 rebounded 1.3% following its
recent slide but remains close to an all-time low as a chill
settled on relations with the United States and after the new
central bank chief signaled rate hikes would harm the economy.
In commodities, U.S. crude CLc1 recently fell 1.42% to
$61.26 per barrel and Brent LCOc1 was at $65.10, down 1.53% on
the day.
Spot gold XAU= added 0.1% to $1,778.99 an ounce. U.S. gold
futures GCc1 fell 0.25% to $1,772.50 an ounce.
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Emerging markets http://tmsnrt.rs/2ihRugV
Global asset performance http://tmsnrt.rs/2yaDPgn
MSCI World Equity Index https://tmsnrt.rs/32UCew5
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(Editing by Ed Osmond, Bernadette Baum and Dan Grebler)