GLOBAL MARKETS-Wall Street leads stocks' rebound, sterling dips

* Deaths from COVID-19 reached half a million on Sunday
* Sterling drops on infrastructure funding concerns
* Boeing up 14%, boosts industrial stocks

(Updates to U.S. stock market close)
By Rodrigo Campos
NEW YORK, June 29 (Reuters) - A gauge of stocks across the
world rose on Monday, led by a rebound on Wall Street, even as
rising COVID-19 cases threaten to stall the recovery of the
world's largest economy.
Contracts to buy U.S. previously owned homes rose by the
highest percentage on record in May. But they remained below
their February level and were down compared with May 2019, which
also kept alive expectations for even more economic stimulus.
Analysts at Morgan Stanley said a further injection of cash
was critical to the bank's thesis for a V-shaped U.S. economic
recovery.
"The market believes that the (Federal Reserve) has its
back," said Sam Stovall, chief investment strategist at CFRA
Research in New York.
"If things get really bad, the Fed will step in with
additional monetary easing and basically reach into their bag of
tricks to do whatever they need to support the market."
Confirmed COVID-19 cases worldwide rose past 10 million and
deaths surpassed 500,000 on Sunday. The relentless spread of the
new coronavirus in the United States, Latin America and
elsewhere curbed optimism over the global economy and raised
worries that some reopening plans will be delayed.
Boeing shares BA.N shot up 14% after 737 MAX certification
flights started Monday and the rally gave life to the Dow
industrials .DJI , while factory- and materials-heavy sectors
of the S&P 500 .SPX boosted the benchmark index. Indexes
closed the day at or near session highs. The Dow Jones Industrial Average .DJI rose 580.25 points,
or 2.32%, to 25,595.8, the S&P 500 .SPX gained 44.19 points,
or 1.47%, to 3,053.24 and the Nasdaq Composite .IXIC added
116.93 points, or 1.2%, to 9,874.15.
The pan-European STOXX 600 index .STOXX rose 0.44% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.74%.
Emerging market stocks lost 0.48%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.93%
lower, while Japan's Nikkei futures NKc1 rose 0.29%.
It is an important week for U.S. data, with the ISM
manufacturing index on Wednesday and monthly payrolls on
Thursday, moved up a day due to observance of the Independence
Day holiday on Friday. Fed Chair Jerome Powell is testifying on
Tuesday.
Bill Merz, head of fixed income research at U.S. Bank Wealth
Management in Minneapolis, said he expected small changes for
long-term yields, noting that Treasuries may be "one of the
least-interesting markets for the rest of the year" due to the
Fed's influence on the short end of the curve.
The yield on benchmark 10-year notes US10YT=RR was barely
changed from late Friday at 0.6381%. The long end of curve edged
higher as investors hoped for a stimulus-backed economic
rebound. The 30-year bond US30YT=RR last fell 12/32 in price
to yield 1.3877%, from 1.372%.
In currency markets, sterling fell against both the dollar
and euro as investors focused on how Britain's government will
pay for its planned infrastructure push, while Brexit-related
risks kept pressure on the pound. Sterling GBP= was last trading at $1.2292, down 0.33% on
the day after falling nearly 0.7% earlier.
The dollar index =USD rose 0.011%, with the euro EUR= up
0.17% to $1.1236.
The Japanese yen weakened 0.35% versus the greenback at
107.55 per dollar.
U.S. crude CLc1 recently rose 2.73% to $39.54 per barrel
and Brent LCOc1 was at $41.55, up 1.29% on the day.


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