GLOBAL MARKETS-Global stock markets, bonds rally in expectation of rate cuts

(Adds updated yield figures)
By David Randall
NEW YORK, July 3 (Reuters) - Record low bond yields in
Europe and the expectation of further interest rate cuts by
central banks worldwide helped push global stock market indices
higher Wednesday as the benchmark U.S. S&P 500 hit another
record high.
European Union leaders' nomination of Christine Lagarde, the
head of the International Monetary Fund, to replace Mario Draghi
as president of the European Central Bank reinforced
expectations of more monetary policy easing if it is needed.
Traders greeted the decision by sinking German 10-year Bund
yields to record lows of minus 39 basis points, lowering Italian
two-year yields back into negative territory for first time in
over a year and lifting stocks worldwide. GVD/EUR
The yield on 10-year UK gilts fell 4 basis points to 0.687%
GB10YT=RR , which left it below the Bank of England's main
policy rate for the first time in a decade. U.S. Treasury yields
slumped to their lowest since late 2016.
"We have already seen some weak data in recent weeks, so
that is the backdrop," said Elwin de Groot, head of macro
strategy at Rabobank. "And now have Christine Lagarde as the
likely successor of Mr Draghi at the ECB, which for the market
says that the dovish policies will continue."
On Wall Street, the Dow Jones Industrial Average .DJI rose
61.4 points, or 0.23%, to 26,848.08, the S&P 500 .SPX gained
8.39 points, or 0.28%, to 2,981.4 and the Nasdaq Composite
.IXIC added 23.09 points, or 0.28%, to 8,132.18.
MSCI's gauge of stocks across the globe .MIWD00000PUS
gained 0.26%, following broad equity gains in Europe.
Investors continued to seek out the safe haven of bonds due
to concerns of slowing global growth after data showed Britain's
economy apparently shrank in the second quarter. Benchmark
10-year notes US10YT=RR last rose 5/32 in price to yield
1.9601%, from 1.977% late on Tuesday.
"The latest downturn has followed a gradual deterioration in
demand over the past year as Brexit-related uncertainty has
increasingly exacerbated the impact of a broader global economic
slowdown," Chris Williamson, chief business economist at IHS
Markit, said of the Britain reading.
In the currency markets, the pound flirted with two-week
lows and stood at $1.2568 GBP=D4 , on course for its fifth drop
in the past six sessions.
Oil prices also rose after data showed U.S. crude stockpiles
fell more than expected last week. They remained wobbly,
however, after falling more than 4% on Tuesday, even after OPEC
and allies including Russia agreed to extend supply cuts.
O/R
Brent crude LCOc1 futures rose 0.7% to $62.85 per barrel.
U.S. West Texas Intermediate crude CLc1 futures gained 0.6% to
$56.56 a barrel after dropping 4.8% the day before.

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Global assets in 2019 http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Global bonds dashboard (DO NOT USE UNTIL UPDATE FOUND) http://tmsnrt.rs/2fPTds0
Emerging markets in 2019 http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
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