GLOBAL MARKETS-Wall Street jumps on hopes of piecemeal stimulus progress

* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh
* Reuters Live Markets blog: LIVE/

(Updates to U.S. market open, changes dateline from LONDON to
NEW YORK, changes byline)
By Stephen Culp
NEW YORK, Oct 7 (Reuters) - Wall Street advanced in a broad
rally on Wednesday as investors recovered from the shock of
President Donald Trump's announcement that he intended to halt
stimulus talks until after the election, taking heart that
incremental aid could be in the offing.
All three major U.S. stock indexes were sharply higher in
the aftermath of Tuesday's late session sell-off prompted by
Trump's tweet.
Trump relented somewhat on Wednesday, saying he backed a
more piecemeal approach to delivering pandemic aid, while White
House chief of staff Mark Meadows said he was "not optimistic
for a comprehensive deal." "The market's trying to read the tea leaves and today it's
saying even if it's incremental progress, something is better
than nothing," said Matthew Keator, managing partner in the
Keator Group, a wealth management firm in Lenox, Massachusetts.
"The recent action in the market is predicated on success or
failure of the stimulus package and to what degree anything will
get done before the election," Keator added. "It's the topic of
the day."
The U.S. Federal Reserve is expected to release the minutes
from its latest monetary policy meeting later on Wednesday.
On Tuesday, prior to Trump halting stimulus negotiations,
Fed Chair Jerome Powell warned the economic recovery would slip
into a downward spiral if Congress fails to provide additional
fiscal aid. The Dow Jones Industrial Average .DJI rose 423.14 points,
or 1.52%, to 28,195.9, the S&P 500 .SPX gained 44.47 points,
or 1.32%, to 3,405.42 and the Nasdaq Composite .IXIC added
148.68 points, or 1.33%, to 11,303.28.
European shares were slightly lower as upbeat earnings were
offset by uncertainties surrounding the fate of a U.S. stimulus
package. The pan-European STOXX 600 index .STOXX lost 0.14% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.82%.
Emerging market stocks rose 0.56%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.89%
higher, while Japan's Nikkei .N225 lost 0.05%.
U.S. Treasury prices fell and the yield curve steepened as
markets took comfort that at least some stimulus measures were
still on the table.
Benchmark 10-year notes US10YT=RR last fell 10/32 in price
to yield 0.7718%, from 0.74% late on Tuesday.
The 30-year bond US30YT=RR last fell 26/32 in price to
yield 1.5716%, from 1.537% late on Tuesday.
The pandemic relief package impasse, along with a bigger
than expected rise in U.S. inventories sent crude prices lower.
U.S. crude CLcv1 fell 2.88% to $39.50 per barrel and Brent
LCOcv1 was last at $41.43, down 2.86% on the day.
The dollar was essentially flat against a basket of world
currencies as markets reacted to Trump's willingness to back
some stimulus measures. The dollar index .DXY was flat, with the euro EUR= up
0.27% to $1.1766.
The Japanese yen weakened 0.32% versus the greenback at
105.99 per dollar, while Sterling GBP= was last trading at
$1.2907, up 0.23% on the day.
Gold prices gained as uncertainties on coronavirus aid
abated. Spot gold XAU= added 0.5% to $1,886.83 an ounce.

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