* ECB announces fresh stimulus measures
* Euro STOXX 600 closes at highest July 29
* MSCI's world equity index touches highest since July 31
* Trade headlines whipsaw markets
(New throughout, updates prices, market activity and comments
to close of U.S. markets)
By Chuck Mikolajczak
NEW YORK, Sept 12 (Reuters) - A gauge of global stock
markets rose for a seventh straight day in choppy trading on
Thursday after hints of progress in the U.S.-China trade
dispute, pushing bond yields off lows hit earlier on the heels
of new stimulus measures put forth by the European Central Bank.
Wall Street equity indexes were buffeted in early trading,
moving to early highs and then quickly paring gains on
conflicting reports about whether Trump administration officials
had considered offering a limited trade deal to China.
"Markets are still on the trade war seesaw today," said
David Carter, chief investment officer at Lenox Wealth Advisors
in New York. "We had some good news on trade which is why
markets are up, but the seesaw may drop on any signs of
failure."
Stocks have drawn support from signs of a thaw in tensions
between the world's two largest economies, including China's
announcement of some tariff exemptions on Wednesday.
Ahead of in-person talks, the United States welcomed China's
pledge to buy agricultural goods, though the threat of tariff
hikes remained. Chinese importers made their largest U.S. soybean purchases
since at least June, traders told Reuters. The Dow Jones Industrial Average .DJI rose 46.02 points,
or 0.17%, to 27,183.06, the S&P 500 .SPX gained 8.71 points,
or 0.29%, to 3,009.64 and the Nasdaq Composite .IXIC added
24.79 points, or 0.3%, to 8,194.47.
Stocks in Europe were also whipsawed by the trade reports
after climbing on the ECB policy statement. The broad STOXX 600
index rose as much as 0.75% before closing with a modest advance
as banks pared gains. The European Central Bank promised an indefinite supply of
fresh asset purchases and cut interest rates deeper into
negative territory to support the economy. The pan-European STOXX 600 index .STOXX rose 0.20% to
close at its highest level since July 29 and MSCI's gauge of
stocks across the globe .MIWD00000PUS gained 0.39%.
Euro zone bond yields fell and the euro weakened following
the ECB announcement but both eventually reversed course as the
stimulus measures failed to live up to market expectations and
investors reacted to trade headlines. After falling as low as a negative 0.124%, 30-year German
yields DE30YT=RR were last at a negative 0.017% after moving
into positive territory earlier this week.
The dollar index .DXY , tracking the unit against six major
currencies, fell 0.28%, with the euro EUR= up 0.51% to
$1.1065. Trade optimism also pushed yields on U.S. Treasuries higher
after early declines in sync with European bonds. Benchmark 10-year notes US10YT=RR last fell 13/32 in price
to yield 1.7785%, from 1.733% late on Wednesday. Yields rose
further as soft demand at a $16 billion 30-year government
auction touched off selling in the U.S. bond market.
Bond market focus now turns to the U.S. Federal Reserve,
which is expected to cut rates next Wednesday.
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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