GLOBAL MARKETS-U.S. stocks led higher by tech on trade optimism; oil rises

* Tech leads U.S. stocks higher on trade talks optimism
* Oil prices jump on fresh Middle East tensions
* European stocks edge higher
* Media report puts 25 bps Fed rate cut expectations back in
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(Updates to late afternoon)
By Stephen Culp
NEW YORK, July 22 (Reuters) - U.S. stocks advanced on Monday
at the onset of a heavy earnings week, while European shares
inched higher as investors took heart from potential progress in
U.S.-China trade talks and increasing geopolitical tensions sent
oil prices higher.
Tech pulled Wall Street into the black as investors girded
themselves for second-quarter results from major industrial and
technology companies and looked forward to the U.S. Federal
Reserve's expected interest rate cut at the end of the month.
The South China Morning Post reported U.S. trade negotiators
will likely visit China next week for their first face-to-face
talk with Chinese officials since the G20 meeting, when Trump
held off imposing a new round of tariffs on Chinese imports.
"The thing to watch with Chinese negotiations is not
necessarily the day to day events," said Bucky Hellwig, senior
vice president at BB&T Wealth Management in Birmingham, Alabama.
"We're still a long way from hammering out an agreement,"
Hellwig added. "We've seen this happen before."
The Dow Jones Industrial Average .DJI rose 9.57 points, or
0.04%, to 27,163.77, the S&P 500 .SPX gained 8.02 points, or
0.27%, to 2,984.63 and the Nasdaq Composite .IXIC added 52.49
points, or 0.64%, to 8,198.98.
Growing tensions in the Middle East, coupled with worries
about Britain leaving the European Union (Brexit) without a deal
held world stocks flat.
"Brexit fears can be somewhat alleviated by a friendly
European Central Bank, and it appears that's the way they're
trending," Hellwig said.
The pan-European STOXX 600 index .STOXX rose 0.13% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.06%.
Brent crude prices LCOc1 moved higher on worries that
Iran's seizure of a British tanker last week could result in
supply disruptions. U.S. crude CLcv1 rose 1.15% to $56.40 per barrel and Brent
LCOcv1 was last at $63.49, up 1.63% on the day.
The dollar and euro were little changed as traders looked to
policy decisions from the U.S. Federal Reserve and the European
Central Bank regarding the pace at which they will cut interest
rates, beginning with the ECB on Thursday. "If the ECB is more aggressive in easing than the Fed, that
could lead to strengthening in the dollar," Hellwig added.
The dollar index .DXY rose 0.07%, with the euro EUR=
down 0.05% to $1.1214.
U.S. Treasury yields fell and the yield curve flattened as
dovish Fed bank policy supported demand for government debt.
Benchmark 10-year notes US10YT=RR last rose 4/32 in price
to yield 2.036%, from 2.05% late on Friday.
The 30-year bond US30YT=RR last rose 11/32 in price to
yield 2.5625%, from 2.578% late on Friday.
Gold held steady, having slid 1% in the previous session on
lowered rate cut expectations, but the safe-haven metal still
found support in the form of global geopolitical uncertainties.
Spot gold XAU= UP 0.08% at $1,426.01 an ounce.
Shipping prices rose on strong vessel demand, with the
Baltic Dry Index .BADI jumping to a 5-year high.