GLOBAL MARKETS-Stocks advance to end first half as G20 in focus

* MSCI ACWI advances, has best H1 since 1997
* Trump-Xi meeting at G20 in focus
* Dollar has weakest month since start of 2018

(Updates with close of U.S. markets)
By Chuck Mikolajczak
NEW YORK, June 28 (Reuters) - A gauge of global stocks
climbed on Friday in advance of a meeting on trade between U.S.
President Donald Trump and Chinese President Xi Jinping, as
global equities notched their best first half since 1997.
Trump and Xi will meet during a Group of 20 summit this
weekend in Osaka, Japan, for talks that could help resolve a
yearlong trade war between China and the United States, as signs
of its dampening effect on global growth have become more
prevalent. "Everybody's anticipating a positive meeting between Trump
and President Xi," said Denis (Sandy) Villere, portfolio manager
at Villere & Co in New Orleans.
"It's priced in as if it's a foregone conclusion. It's
making us a little nervous that the market's already baked in
all that good news."
Economic data on Friday showed U.S. consumer spending
increased moderately in May and prices rose slightly, pointing
to slowing economic growth and benign inflation pressures, which
could give the Federal Reserve enough leeway to cut interest
rates in July. Wall Street rose, buoyed by financial shares in following
the results of the U.S. Federal Reserve's "stress tests,"
although each of the major indexes snapped a three-week winning
streak. The S&P 500 had its best June performance since 1955
while the Dow marked its best June since 1938. The Dow Jones Industrial Average .DJI rose 72.84 points,
or 0.27%, to 26,599.42, the S&P 500 .SPX gained 16.53 points,
or 0.57%, to 2,941.45 and the Nasdaq Composite .IXIC added
38.49 points, or 0.48%, to 8,006.24.
Banking shares also helped European indexes move higher
ahead of the meeting, with Germany's DAX leading the way with a
gain of more than 1% thanks to gains in Deutsche Bank AG
DBKGn.DE . The pan-European STOXX 600 index .STOXX rose 0.70% to
notch its best first half since 1998 and MSCI's gauge of stocks
across the globe .MIWD00000PUS gained 0.44%.
MSCI's index scored its best month since January, gaining
more than 6% in June as equities rallied after major central
banks around the globe pivoted toward easier monetary policy
stances.
That shift came as trade negotiations between the United
States and China broke down earlier this year. Now markets are
betting that an interest rate cut by the Federal Reserve of at
least a quarter of a percentage point is a virtual certainty as
early as the next policy meeting in July, according to CME's
FedWatch tool.
On Thursday, China's central bank pledged to support a
slowing economy, before the release of data that is expected to
show China's factory activity slowed for a second consecutive
month in June. The dollar index .DXY fell 0.01% against a basket of major
currencies and was set to turn in its weakest monthly
performance since January 2018 as anticipation of a Fed rate cut
has pushed the index down about 1.7% this month.

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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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(Additional reporting Sinéad Carew; editing by Jonathan Oatis)