GLOBAL MARKETS-Global stocks recover on firmer futures, retreat in U.S. yields

* European stocks 0.1% firmer
* China shares close to correction
* Nikkei up 1%, E-minis bounce 0.8%
* U.S. Treasury yields fall
* Final euro zone Q1 GDP data due later

By Tom Arnold and Paulina Duran
LONDON/SYDNEY, March 9 (Reuters) - Global stocks steadied on
Tuesday, supported by stronger U.S. equity futures and a decline
in U.S. and European bond yields.
In Europe, the Euro STOXX 600 .STOXX was up 0.1% after a
gains on Monday that lifted Germany's index to a record high.
In volatile trading in Asia, the Shanghai Composite index
.SSEC fell 1.8% and was close to a correction from a
multi-year high on Feb. 18 amid fears of policy tightening.
Japan's Nikkei .N225 finished 1% higher as consumer goods
companies and property developers gained on expectations they
would benefit from an economic recovery.
"We're going through a consolidation phase," said Francois
Savary, chief investment officer at Prime Partners. "There is a
trend towards a rotation in the market, which is correct as
price-to-earnings ratios were excessive. But overall, we think
we will have a more balanced equity market than 2020, though
volatility is going to stay with us."
NASDAQ futures rose 1.6% NQc1 and S&P 500 futures ESc1
0.8%.
U.S. Treasury Secretary Janet Yellen said on Monday that
President Joe Biden's coronavirus aid package would provide
enough resources to fuel a "very strong" U.S. economic recovery,
and noted "there are tools" to deal with inflation. Still, investors remain conflicted over whether the stimulus
will help global growth rebound faster from the COVID-19
downturn or cause the world's biggest economy to overheat and
fuel inflation.
"The chance of our seeing more inflation in the economy is
meaningfully increased by the monetary policy actions and the
fiscal policy actions that we're seeing around the world,"
Goldman Sachs Chief Executive Officer David Solomon told a
conference in Sydney via webcast.
"There is certainly a reasonable outcome where inflation
accelerates more quickly than people are expecting, and that
will obviously have an impact on markets and volatility."
The technology sector and other richly valued companies have
been highly susceptible to the rising rates.
Australian shares tracked overnight gains on Wall Street
with the main S&P/ASX 200 index .AXJO climbing 0.5% on
Tuesday. However, Australian tech stocks slid for the sixth
straight session, in line with their U.S. peers. Similarly, South Korea's KOSPI .KS11 fell 0.7%, dipping
for a fourth straight session, as tech shares sold off.
U.S. economic data pointed to a continued recovery.
Wholesale inventories increased in January despite a surge in
sales, the Commerce Department said on Monday, suggesting
inventory investment could again contribute to growth in the
first quarter. "If rates are grinding higher because people are getting
optimistic about what economic growth looks like, that is still
supportive for equity prices," said Tom Hainlin, global
investment strategist at U.S. Bank Wealth Management's Ascent
Private Wealth Group in Minneapolis.
Long-dated euro zone government bond yields dipped ahead of
the release at 1000 GMT of final gross domestic data for the
bloc. A Reuters poll forecast the region's economy contracted 5%
from a year before.
Germany's 10-year government bond yield DE10YT=RR dropped
two basis points to -0.298%.
U.S. 10-year Treasury bond yields US10YT=RR also eased, to
1.5472%. Treasury yields have been advancing in recent months as
investors price in higher inflation and more upbeat prospects
for the U.S. economy.
In foreign exchange markets, the dollar index =USD backed
away from a three-and-a-half-month high. In signs risk appetite
is returning, sterling, the Aussie, and the Kiwi dollar all
edged up. The euro EUR=D3 was up 0.1% at $1.185.
Oil prices fell on Tuesday, on receding fears of a supply
disruption in Saudi Arabia after an attack on its export
facilities.
Brent crude futures LCOc1 for May fell by 0.7% to $67.78 a
barrel. U.S. West Texas Intermediate (WTI) crude CLc1 for
April slipped by 0.8% to $65.53. O/R
Spot gold XAU= added 0.7% to $1,692.21 an ounce.

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