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GLOBAL MARKETS-Stimulus hopes lift stocks, pound hits 6-week high

Published 09/09/2019, 16:48
Updated 09/09/2019, 16:50
© Reuters.  GLOBAL MARKETS-Stimulus hopes lift stocks, pound hits 6-week high
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* Stocks edge up on stimulus hopes

* Pound choppy on Brexit uncertainty

* Crude climbs on new output cut commitment

(Updates with open of U.S. markets, changes dateline; previous

LONDON)

By Chuck Mikolajczak

NEW YORK, Sept 9 (Reuters) - A gauge of global stocks

advanced on Monday as investors banked on the likelihood of

stimulus measures from the world's central banks to reverse

slowing growth, while the pound hit a six-week high in choppy

trading on wavering hopes for Britain's ability to leave the

European Union with a deal.

After two straight weeks of gains, stocks on Wall Street

were modestly higher, buoyed by gains in energy .SPNY and

financial .SPSY shares. Market participants saw last week's

break by major U.S. indexes out of their August range as a

positive sign.

Earlier, data showed Japan's economy grew at a slower pace

than initially estimated in the second quarter as the U.S.-China

trade war prompted a downward revision of business spending,

intensifying calls for the central bank to deepen stimulus this

month. Still, barring a major announcement on trade developments

between the United States and China, stock movements were likely

to be muted ahead of the next policy announcement by the Federal

Reserve on Sept. 18.

Federal Reserve Board Chairman Jerome Powell said the

central bank would continue to "act as appropriate" to sustain

U.S. economic expansion. "Barring any surprise news, this should be a quiet week in

the equity market as most investors are on hold until next week

for the FOMC (Federal Open Market Committee) meeting," said

Shawn Gibson, chief investment officer of asset management firm

Liquid Strategies in Atlanta.

The Dow Jones Industrial Average .DJI rose 72.29 points,

or 0.27%, to 26,869.75, the S&P 500 .SPX gained 3.58 points,

or 0.12%, to 2,982.29 and the Nasdaq Composite .IXIC added

7.05 points, or 0.09%, to 8,110.13.

European shares advanced, holding at the highest level in

over a month, after data showed a surprise rise in German

exports and on firmer expectations of new stimulus by the

European Central Bank later this week.

The pan-European STOXX 600 index .STOXX lost 0.29% and

MSCI's gauge of stocks across the globe .MIWD00000PUS gained

0.10%.

Sterling hit a six-week high of $1.2382 GBP= as investors

saw the likelihood of a "no-deal" Brexit lessening and data that

indicated Britain's economy picked up more than anticipated in

July. British Prime Minister Boris Johnson will try for a second

time on Monday to call a snap parliamentary election, but is set

to be thwarted once more by opposition lawmakers who want to

ensure he cannot take Britain out of the European Union without

a divorce agreement in place. Sterling's gains were briefly pared sharply as John Bercow,

speaker in Britain's House of Commons, announced he would stand

down from the role. Sterling GBP= was last trading at $1.2359, up 0.64% on the

The dollar index .DXY fell 0.18%, with the euro EUR= up

0.31% to $1.1061.

Oil prices jumped after the new Saudi energy minister,

Prince Abdulaziz bin Salman, confirmed expectations that there

would be no radical change in his country's oil policy.

U.S. crude CLcv1 rose 2.71% to $58.05 per barrel and Brent

LCOcv1 was last at $62.79, up 2.03% on the day.

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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