GLOBAL MARKETS-Global equities inch higher, bonds gain as Europe COVID cases rise

(Updates to midday U.S. trading)
By David Randall
NEW YORK, March 22 (Reuters) - Global equities inched higher
and safe-haven assets such as U.S. Treasuries rallied on Monday
as investors weighed rising coronavirus cases in Europe against
a break in the recent run-up of bond yields sparked by concerns
of higher global inflation.
On an unsettled day for global markets, risk assets such as
oil rallied alongside safe havens such as Treasuries, while
Turkish assets took a beating after a shock weekend decision to
replace the country's hawkish central bank governor.
A third wave of COVID-19 across Europe due to highly
contagious coronavirus variants is boosting concerns of another
round of economic restrictions, with Paris going into a
four-week lockdown late last week.
"The number of new COVID-19 cases is rising rapidly, and an
extension of the lockdown inevitable for many European
countries. No one will be surprised by such a decision," said
Milan Cutkovic, market analyst at Axi.
"The question is whether investors will remain calm amid the
increasing uncertainty. If the vaccination campaign would be
running successfully, it would be much easier for market
participants to ignore the sharp uptick in new cases."
MSCI's gauge of stocks across the globe .MIWD00000PUS
gained 0.38%%, with slight gains in Europe but a 2.1% decline in
Japan's Nikkei index.
In midday trading on Wall Street, the Dow Jones Industrial
Average .DJI rose 70.29 points, or 0.22%, to 32,698.26, the
S&P 500 .SPX gained 25.73 points, or 0.66%, to 3,938.83 and
the Nasdaq Composite .IXIC added 162.12 points, or 1.23%, to
13,377.35.
Heavyweight technology stocks sold off last week as the
surge in bond yields in recent weeks sparked a flight from
richly valued equities.
A host of Federal Reserve officials speak this week,
including three appearances by Chair Jerome Powell, providing
plenty of opportunity for more volatility in markets.
Benchmark 10-year U.S. Treasury notes US10YT=RR last rose
12/32 in price to yield 1.6893%, from 1.732% late on Friday.
In currency markets, Turkey's lira fell 15% TRYTOM=D3 to
8.485 against the dollar, its worst plunge since the last
Turkish crisis of 2018, before paring losses on calming words
from Finance Minister Lutfi Elvan. "We don't see any contagion risk to the rest of emerging
markets; it's been shown time and time again that the lira is
its own story," said John Hardy, head of foreign exchange
strategy at Saxo Bank.
Turkish sovereign bond yields soared above 18%, hitting a
22-month high.
The dollar index =USD fell 0.351%, with the euro EUR= up
0.26% to $1.1934.
Oil prices steadied after a broad sell-off last week as
market players remained confident demand would rebound later in
the year, despite European coronavirus lockdowns dimming hopes
for a quick economic recovery. O/R
U.S. crude CLc1 was unchanged at $61.42 per barrel and
Brent LCOc1 was at $64.72, up 0.29% 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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