* Stocks turn lower after early gains
* Pound choppy on Brexit uncertainty
* Crude climbs on new output cut commitment
(Updates with close of European markets)
By Chuck Mikolajczak
NEW YORK, Sept 9 (Reuters) - A gauge of global stocks gave
up initial gains on Monday as investors questioned whether
likely stimulus measures from the world's central banks would be
enough to deter slowing growth, while the pound hit a six-week
high in choppy trading.
After two straight weeks of gains, stocks on Wall Street
slipped, as advances in energy .SPNY and financial .SPSY
shares were offset by a decline in tech .SPLRCT names.
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 as investors have begun to question whether
central banks even have enough measures at their disposal to
support economic growth.
The European Central Bank is expected to introduce new
stimulus measures at its meeting on Thursday. "To what extent is even a highly coordinated effort to
reduce the cost of capital, how is that going to affect the
global economy?" said Peter Kenny, Founder, Kenny's Commentary
LLC and Strategic Board Solutions LLC in New York.
"There is a degree of skepticism that this time around it
will have the same sort of therapeutic effect on triggering
appetite."
Federal Reserve Board Chairman Jerome Powell said the
central bank would continue to "act as appropriate" to sustain
U.S. economic expansion. The Dow Jones Industrial Average .DJI rose 17.36 points,
or 0.06%, to 26,814.82, the S&P 500 .SPX lost 3.53 points, or
0.12%, to 2,975.18 and the Nasdaq Composite .IXIC dropped
33.20 points, or 0.41%, to 8,069.87.
European shares ended lower, as Britain's export-heavy FTSE
index tumbled due to a stronger pound, while selling in
defensive sectors such as healthcare and utilities dented early
gains in markets. The pan-European STOXX 600 index .STOXX lost 0.28% and
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
0.06%.
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 $1.2347, up 0.54% on the
The dollar index .DXY fell 0.15%, with the euro EUR= up
0.24% to $1.1053.
Oil prices jumped after the new Saudi energy minister,
Prince Abdulaziz bin Salman, confirmed expectations he would
stick with his country's policy of limiting crude output to
support prices. U.S. crude CLcv1 rose 2.44% to $57.90 per barrel and Brent
LCOcv1 was last at $62.73, up 1.93% 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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(Editing by Dan Grebler and Cynthia Osterman)