* ECB announces fresh stimulus measures
* Euro STOXX 600 closes at highest July 29
* MSCI's world equity index touches highest since July 31
* Trade headlines whipsaw markets
(Updates with close of European markets)
By Chuck Mikolajczak
NEW YORK, Sept 12 (Reuters) - A gauge of global stock
markets reached a six-week high in choppy trading on Thursday
after new hints of progress in the U.S.-China trade dispute,
sending bond yields off lows hit earlier in the wake of the
European Central Bank's new stimulus measures.
On Wall Street, major equity indexes were buffeted by
conflicting reports about whether Trump administration officials
had considered offering a limited trade deal to China, moving
to early highs before quickly paring gains.
"The market has been hyper-sensitive to any issues on trade
and if we get any whiff of a hint that there may be some
progress, that's viewed positively," said Scott Brown, chief
economist at Raymond James in St. Petersburg, Florida.
Stocks have been getting a lift recently from recent signs
of a thaw in negotiations between the world's two largest
economies, including the announcement by China of some tariff
exemptions on Wednesday.
A pledge by China to buy agricultural goods was welcomed by
the United States, though the threat of tariff hikes remained
ahead of upcoming in-person talks. Reuters reported Chinese importers made their largest U.S.
soybean purchases since at least June, according to traders.
The Dow Jones Industrial Average .DJI rose 131.14 points,
or 0.48%, to 27,268.18, the S&P 500 .SPX gained 16.04 points,
or 0.53%, to 3,016.97 and the Nasdaq Composite .IXIC added
48.11 points, or 0.59%, to 8,217.78.
Stocks in Europe were whipsawed by the trade reports as well
after climbing on the earlier ECB policy statement, with the
broad STOXX 600 index rising as much as 0.75% before closing
with a modest advance as banks pared gains. The European Central Bank promised an indefinite supply of
fresh asset purchases and cut interest rates deeper into
negative territory in an effort to buttress the euro zone
economy. The pan-European STOXX 600 index .STOXX rose 0.20% to
close at its highest level since July 29 and MSCI's gauge of
stocks across the globe .MIWD00000PUS gained 0.55%.
Euro zone bond yields fell and the euro weakened following
the ECB announcement but both eventually reversed course as the
stimulus measures failed to live up to dovish market
expectations as well as a reaction to the trade headlines.
After falling as low as a negative 0.124%, 30-year German
yields DE30YT=RR were last at a negative 0.017% after moving
into positive territory earlier this week.
The dollar index .DXY , tracking the unit against six major
currencies, fell 0.33%, with the euro EUR= up 0.55% to
$1.1069. Trade optimism also pushed yields on U.S. Treasuries higher
after earlier declines that were in sync with European bonds.
Benchmark 10-year notes US10YT=RR last fell 15/32 in price
to yield 1.7837%, from 1.733% late on Wednesday. Yields rose
further as soft demand at a $16 billion 30-year government
auction touched off a fresh wave of selling in the U.S. bond
market. With the ECB decision in the rear view, attention now turns
to the U.S. Federal Reserve, which is widely expected to cut
rates next Wednesday.
Global assets in 2019 http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
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