GLOBAL MARKETS-Stocks seesaw as rising coronavirus cases offset recovery hopes

(Adds U.S. market open, byline, dateline; previous LONDON)
* European shares add to best gains in nearly a month
* Wall Street mixed as new virus cases offset growth hopes
* Mood restrained by surge in virus cases, China-India spat

By Herbert Lash
NEW YORK, June 17 (Reuters) - Equity markets around the
world seesawed on Wednesday as the prior day's rally on economic
and vaccine hopes faded, while fresh coronavirus outbreaks and
rising geopolitical tensions in Asia boosted demand for the
dollar and safe-haven debt.
Optimism over a quick economic recovery has been tempered by
more global cases of the coronavirus, with an outbreak in
Beijing and a rising tide of infections in U.S. states that are
reopening their economies giving investors pause.
U.S. Treasury yields edged lower and crude prices fell on
concerns over the fresh outbreaks, but drew some support from
stimulus measures and positive tests of a drug trial for
dexamethasone that could save some critically ill COVID-19
patients.
The dollar rose from early lows as investors wary of wider
geopolitical risks sought its relative safety ahead of remarks
by Federal Reserve Chair Jerome Powell during a second day of
testimony before Congress.
Rising tensions between North Korea and South Korea spurred
demand for safe-havens, as did clashes between Indian and
Chinese troops at a disputed border site. After the sharp 50-day rally in equities from March lows, a
period of several months where the market doesn't do much can be
expected, said Michael Arone, chief investment strategist at
State Street Global Advisors in Boston.
"We're seeing that struggle, that tug of war, that friction
play out already this month," Arone said. "June hasn't been a
straight shot to the moon. That's what you're likely going to
see for the balance of the summer, not a bad thing."
European shares climbed further, adding to their best gains
in almost a month a day earlier, but the Nikkei .N225 in Tokyo
eased 0.5% after posting its biggest daily gain in three months
the prior day.
MSCI's gauge of stocks across the globe .MIWD00000PUS
gained 0.20% but was likely to be pulled lower as U.S. stocks,
which account for more than half the world benchmark's
performance, were mixed.
The pan-European STOXX 600 index .STOXX rose 0.67% and
emerging market stocks rose 0.32%.
On Wall Street, the Dow Jones Industrial Average .DJI fell
41.27 points, or 0.16%, to 26,248.71 and the S&P 500 .SPX
gained 0.63 points, or 0.02%, to 3,125.37. The Nasdaq Composite
.IXIC added 49.49 points, or 0.5%, to 9,945.36.
Chinese blue chips .CSI300 recovered from an early dip to
finish steady despite Beijing's worst resurgence in COVID-19
cases in four months.
"The tension between better economic data and rising
COVID-19 cases continues to drive market volatility," said
Antoine Bouvet, senior rates strategist at ING in London.
The dollar index =USD rose 0.319%, with the euro EUR=
down 0.44% to $1.1213. The Japanese yen JPM= strengthened
0.08% versus the greenback at 107.27 per dollar.
Thirty-year Treasury yields US30YT=RR were up 2 basis
points at 1.55%, having risen by the most in a month on Tuesday,
while 10-year German Bunds DE10YT=RR led similar moves across
Europe. GVD/EUR
Oil prices swung in and out of the red amid an increase in
U.S. crude inventories. They had climbed 3% on Tuesday after the
International Energy Agency (IEA) raised its oil demand forecast
for 2020. O/R
U.S. crude CLc1 fell 1.38% to $37.85 per barrel and Brent
LCOc1 was at $40.60, down 0.88% on the day.

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Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
World stocks and oil vs coronavirus cases https://tmsnrt.rs/2YHK4H8
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