GLOBAL MARKETS-Bond scares drive muted Wall St open, investors look to Powell

(Adds U.S. markets open; changes byline, dateline; previous
LONDON)
By Suzanne Barlyn
New York, March 4 (Reuters) - Worries about lofty U.S. bond
yields hit global shares on Thursday and Wall Street's open was
tepid as investors waited to see if Federal Reserve Chair Jerome
Powell would address concerns about a rapid rise in long-term
borrowing costs.
The specter of high U.S. bond yields also undermined
low-yielding, safe-haven assets, such as the yen, the Swiss
franc and gold.
Benchmark 10-year notes US10YT=RR last rose 1/32 in price
to yield 1.4671%, from 1.47% late on Wednesday. They earlier
touched their highest levels since a one-year high of 1.614% set
last week on bets on a strong economic recovery aided by
government stimulus and progress in vaccination programs.
"Investors want to know whether the spike above 1.5% was
just a short-term blip, or is that the beginning of new trend
higher," said Sam Stovall, chief investment strategist at CFRA
in New York.
Investors are looking to Powell's upcoming remarks "to find
out if there will be any adjustment in his tone to indicate that
'well, maybe we are paying closer attention to the interest
rates and inflation," Stovall said.
The Dow Jones Industrial Average .DJI rose 37.6 points, or
0.12%, to 31,307.69, the S&P 500 .SPX gained 2.03 points, or
0.05%, to 3,821.75 and the Nasdaq Composite .IXIC dropped
21.04 points, or 0.16%, to 12,976.72.
The pan-European STOXX 600 index .STOXX lost 0.36% and
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
0.55%, its third day of losses.
Emerging market stocks lost 1.95%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 2.18%
lower, while Japan's Nikkei .N225 lost 2.13% to its lowest
since Feb. 5.
The number of Americans filing for jobless benefits rose
last week, likely boosted by brutal winter storms in the densely
populated South, though the labor market outlook is improving
amid declining new COVID-19 cases. The crucial monthly payrolls report is expected on Friday.
But the market is focused on Powell, who is due to speak at
a Wall Street Journal conference at 12:05 p.m. EST (1705 GMT),
in what will be his last outing before the Fed's policy-making
committee convenes March 16-17. Many Fed officials have downplayed the rise in Treasury
yields in recent days, although Fed Governor Lael Brainard on
Tuesday acknowledged that concerns over the possibility a rapid
rise in yields could dampen economic activity.
In addition, anxiety is building over a pending regulatory
change in a rule called the supplementary leverage ratio, or
SLR, which could make it more costly for banks to hold bonds.
Currency investors continued to snap up dollars as they bet
on the U.S. economy outperforming its peers in the developed
world in coming months. FRX/
The dollar index =USD rose 0.046%, with the euro EUR=
down 0.25% to $1.2032.
The Japanese yen weakened 0.52% versus the greenback at
107.57 per dollar, roughly a seven month high, while Sterling
GBP= was last trading at $1.3994, up 0.29% on the day.
Other safe-haven currencies were weakened, with the Swiss
franc CHF= dropping to a five-month low against the dollar and
a 20-month trough versus the euro EURCHF= .
The Swedish crown fell 0.17% versus the greenback at 8.43
per dollar.
Buoyed by lower U.S. Treasury yields, Spot gold XAU= added
0.5% to $1,719.04 an ounce, but still near a nine-month low.
Investor focus on a U.S. economic rebound was unshaken by
data released overnight that showed the labor market struggling
in February, when private payrolls rose less than expected.
Oil prices rose for a second straight session on Thursday,
as the possibility that OPEC+ producers might decide against
increasing output at a key meeting later in the day underpinned
a drop in U.S. fuel inventories. O/R
U.S. crude CLc1 recently rose 2.53% to $62.83 per barrel
and Brent LCOc1 was at $65.84, up 2.76% on the day.

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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country World Index Market Cap http://tmsnrt.rs/2EmTD6j
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