GLOBAL MARKETS-Stocks rise on trade truce bets; lira shaken by Turkey move on Syria

* Turkish lira touches near four-month low versus USD

* Oil pares gains but still higher in post-settle trade

(Updates prices, changes comments)

By Rodrigo Campos

NEW YORK, Oct 9 (Reuters) - Stocks gained on Wednesday on a

report that China could yet agree to a partial trade deal with

the United States despite recent tensions, while the prospect of

a last-minute Brexit agreement between the European Union and

Britain seemed as remote as ever.

Sterling was little changed against the dollar after losing

nearly 1% over the past two sessions.

China is still open to agreeing to a partial trade deal,

Bloomberg reported on Wednesday, despite the recent U.S.

blacklisting of Chinese technology firms and reports on visa

restrictions from both sides. "You don't want to ignore headlines, but at the same time

each headline seems to say the same thing - that both sides want

to see something happen and both sides are encouraged that

something may happen," said Michael Lorizio, senior fixed income

trader at Manulife Investment Management in Boston.

Markets have been wobbly this month on more evidence that

the U.S.-China conflict over trade is increasingly damaging the

global economy. Stocks have been particularly sensitive to

headlines regarding trade.

"Investors are hoping for an interim deal, they aren't

expecting anything big, but are cautiously optimistic," said

Michael Geraghty, equity strategist at Cornerstone Capital

Group.

On Wall Street, the Dow Jones Industrial Average .DJI rose

208.58 points, or 0.8%, to 26,372.62, the S&P 500 .SPX gained

29.3 points, or 1.01%, to 2,922.36 and the Nasdaq Composite

.IXIC added 89.72 points, or 1.15%, to 7,913.49. The pan-European STOXX 600 index .STOXX rose 0.42% and

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

0.60%. Emerging market stocks lost 0.03%, while Nikkei futures

NKc1 rose 1.2%.

BREXIT TALKS

Talks between the European Union and Britain over an

agreement regarding London's departure from the EU on Oct. 31

appeared to be going nowhere. British lawmakers have voted to force Prime Minister Boris

Johnson to seek an extension to the departure date if he cannot

agree a deal, but the prospect of further prolonged political

uncertainty is worrying investors.

Sterling GBP= was recently at $1.2213, down 0.03% on the

day after falling 0.93% over the two previous sessions.

The dollar index .DXY fell 0.02%, with the euro EUR= up

0.16% to $1.0972. The Japanese yen weakened 0.39% versus the greenback at

107.52 per dollar.

The Turkish lira touched a near four-month low versus the

dollar after Ankara launched a military operation against

Kurdish fighters in northeast Syria just days after U.S. troops

pulled back from the area. The Turkish currency lost 0.47% versus the dollar at 5.86.

In bond markets, U.S. Treasury yields US10YT=RR rose as

investors happy to take on some more risk sold out of safer

assets. A flood of supply also weighed on U.S. bond prices.

Benchmark 10-year notes US10YT=RR last fell 11/32 in price

to yield 1.5768%, from 1.539% late on Tuesday. Ecuadorian bonds tumbled as protesters began a national

strike after President Lenin Moreno refused to step down or

overturn anti-austerity measures that have triggered the worst

unrest in a decade. Oil prices edged higher as Turkey's attack on Syria and

hopes of trade talks progress were partly offset by a build in

U.S. crude inventories. U.S. crude CLc1 rose 0.23% to $52.75 per barrel and Brent

LCOc1 was last at $58.44, up 0.34% on the day.

Spot gold XAU= added 0.2% to $1,507.60 an ounce. U.S. gold

futures GCc1 gained 0.61% to $1,513.40 an ounce.

Global assets in 2019 http://tmsnrt.rs/2jvdmXl

Global currencies vs. dollar http://tmsnrt.rs/2egbfVh

Emerging markets in 2019 http://tmsnrt.rs/2ihRugV

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