GLOBAL MARKETS-Wall Street rallies on U.S. stimulus and vaccine hopes as bond markets calm

(Updates prices and details)
* Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Reuters Live Markets blog: LIVE/

By Suzanne Barlyn
NEW YORK, March 1 (Reuters) - Global equities markets rose
and the S&P 500 on Monday had its best day since June 5, with
investors taking lower U.S. bond yields in stride on optimism
over the $1.9 trillion coronavirus relief bill and distribution
of Johnson & Johnson's JNJ.N newly authorized COVID-19
vaccine.
Wall Street's rise follows a jump in European shares and
solid gains on Asian stock markets.
Investor optimism that the J&J vaccine would further lift
the economy is "giving a lift to all of the 'go-to-work' stocks"
that benefit from businesses reopening, said Jim Awad, senior
managing director at Clearstead Advisors in New York.
A stabilization of U.S. Treasury yields has also removed
pressure from growth stocks, Awad said.
The Dow Jones Industrial Average .DJI rose 603.14 points,
or 1.95%, to 31,535.51, the S&P 500 .SPX gained 90.67 points,
or 2.38%, to 3,901.82 and the Nasdaq Composite .IXIC added
396.48 points, or 3.01%, to 13,588.83.
The much-anticipated COVID-19 relief bill was passed in the
U.S. House of Representatives on Saturday, and now moves to the
Senate. The pan-European STOXX 600 index .STOXX rose 1.84% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
2.01%.
Emerging market stocks rose 1.71%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 1.83%
higher, while Japan's Nikkei .N225 rose 2.41%.
Reports on manufacturing and factory activity showed
strength in many developed economies on Monday, including a
three-year high in the United States, which could keep inflation
concerns on the radar.
Major sovereign bonds rallied on Monday as markets showed
further signs of stabilization after their worst monthly
performance in years. Expectations of economic recovery and rising inflation
boosted global benchmark bond yields in February to their
biggest monthly rises in years. But the expected run-down of
U.S. Treasury balances at the Federal Reserve has held down
shorter-dated rates. Benchmark 10-year Treasury notes US10YT=RR last rose 8/32
in price to yield 1.429%, from 1.456% on Monday.
The coronavirus pandemic laid bare weaknesses in the
financial system that should be addressed with new rules to
prepare for the next shock, Fed Governor Lael Brainard said.
"We should not miss the opportunity to distill lessons from
the COVID shock and institute reforms so our system is more
resilient and better able to withstand a variety of possible
shocks in the future," Brainard said. Gold prices rose as the retreat in U.S. Treasury yields
helped to bolster its status as an inflation hedge, but a firmer
dollar limited bullion's advance.
Spot gold XAU= dropped 0.5% to $1,724.06 an ounce. U.S.
gold futures GCc1 fell 0.45% to $1,720.40 an ounce.
The dollar index rose to a three-week high as investors bet
on faster growth and inflation in the United States, while the
Australian dollar gained after Australia's central bank
increased its bond purchases in a bid to stem rapidly rising
yields. Bitcoin BTC=BTSP rose 6.70% to $48,719.02, with Citi
saying the most popular cryptocurrency was at a "tipping point"
and could become the preferred currency for international trade.
Goldman Sachs GS.N has restarted its cryptocurrency
trading desk, a person familiar with the matter told Reuters.
U.S. crude CLc1 recently fell 1.77% to $60.41 per barrel
and Brent LCOc1 was at $63.45, down 1.51% on the day on fears
that Chinese oil crude consumption is slowing and that OPEC may
increase global supply following a meeting this
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Emerging markets http://tmsnrt.rs/2ihRugV
Global asset performance http://tmsnrt.rs/2yaDPgn
Germany 10-year https://tmsnrt.rs/3sEKmfo
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