* German finance minister Scholz hints at big fiscal push
* China factory-gate prices fall sharply in August
* Markets leery before ECB meeting
(Updates with close of European markets)
By Chuck Mikolajczak
NEW YORK, Sept 10 (Reuters) - A gauge of world stock markets
fell for the first time in five sessions and bond yields rose on
Tuesday, as uncertainty grew over the mix of stimulus the
European Central Bank will add to boost a slumping economy this
week amid fresh signs global growth was slowing.
Germany's 30-year benchmark bond yield DE30YT=RR briefly
broke into positive territory for the first time since Aug. 5,
while U.S. Treasury yields US2YT=RR US10YT=RR US30YT=RR
climbed to three-week highs. Benchmark U.S. 10-year notes US10YT=RR last fell 21/32 in
price to yield 1.6936%, from 1.622% late on Monday.
The bond moves come as market participants look towards
Thursday's ECB meeting, which is widely expected to deliver a
cut to interest rates and point to further bond-buying stimulus.
However, concern has been mounting that ECB policymakers and
other global central banks are nearing the limits of stimulus
policies, especially those with negative interest rates and
sub-zero long-term sovereign bond yields.
"The real fulcrum event is the ECB meeting and that will
drive Bunds, which in turn, have had a massive influence on
Treasuries over the course of the last eight weeks or so," said
Guy LeBas, chief fixed income strategist at Janney Montgomery
Scott in Philadelphia.
The U.S. Federal Reserve is also widely expected to cut
interest rates next week as policymakers attempt to protect the
global economy from risks, such as Britain's exit from the
European Union.
On Wall Street, stocks were lower, weighed down in part by
technology .SPLRCT shares as data from China showing producer
prices had their sharpest pace of declines in three years in
August renewed global recession worries. The Dow Jones Industrial Average .DJI fell 6.14 points, or
0.02%, to 26,829.37, the S&P 500 .SPX lost 7.05 points, or
0.24%, to 2,971.38 and the Nasdaq Composite .IXIC dropped
21.41 points, or 0.26%, to 8,066.03.
European shares edged higher, as the rise in bond yields
helped boost bank shares .SX7P by more than 2%, putting them
on track for a fifth day of gains. The bank index is up nearly
9% over that span, its best five-day performance since April
2017.
The pan-European STOXX 600 index .STOXX rose 0.10%, while
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
0.15%.
Germany's DAX rose after Finance Minister Olaf Scholz said
the country was ready to inject "many, many billions of euros"
into the economy to counter any economic downturn. The export-heavy German index was also aided by a Reuters
report that Bank of Japan policymakers are now more open to
discussing the possibility of expanding stimulus at their Sept.
18-19 board meeting due to the broadening fallout of the
U.S.-China trade war. In currencies, the dollar strengthened but held in a tight
range ahead of the ECB meeting, while sterling steadied as
investors looked for clarity on the Brexit situation as several
British lawmakers launched a new group on Tuesday to bolster
efforts to secure a deal to leave the European Union.
The dollar index .DXY rose 0.09%, with the euro EUR=
down 0.05% to $1.104.
Sterling GBP= was last trading at $1.2342, down 0.02% on
the day.
German 30-yr yield https://tmsnrt.rs/2A8XP5y
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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