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GLOBAL MARKETS-Stocks little changed, pound hits 6-week high

Published 09/09/2019, 21:12
Updated 09/09/2019, 21:20
© Reuters.  GLOBAL MARKETS-Stocks little changed, pound hits 6-week high
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* Stocks end little changed in mixed trade

* Pound choppy on Brexit uncertainty

* Crude climbs on new output cut commitment

(Updates with close of U.S. markets, oil settlement prices)

By Chuck Mikolajczak

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

near flat on Monday after bouncing between gains and losses 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 that boosted the S&P 500

by 4.6%, stocks on Wall Street closed near the unchanged mark as

advances in energy .SPNY and financial .SPSY shares were

offset by a decline in tech .SPLRCT and healthcare .SPXHC .

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. 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. "This is kind of the eye of the storm," as investors await

more news on trade or interest rates, said Paul Nolte, portfolio

manager at Kingsview Asset Management in Chicago.

But he said, "for the market to move significantly higher

from here, we'd really need to see something happen on trade."

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 38.05 points,

or 0.14%, to 26,835.51, the S&P 500 .SPX lost 0.28 points, or

0.01%, to 2,978.43 and the Nasdaq Composite .IXIC dropped

15.64 points, or 0.19%, to 8,087.44.

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

0.01%.

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 ask Parliament a

second time for an early national election but was likely to be

defeated in a vote at around 2230 GMT on Monday. He will then

suspend Parliament until Oct. 14. 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 $1.2343, up 0.50% on the

The dollar index .DXY fell 0.1%, with the euro EUR= up

0.19% to $1.1048.

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 2.35% to settle at $57.85 per barrel

and Brent LCOcv1 settled at $62.59, up 1.71% 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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