* Eyes on ECB meeting; euro zone fiscal stimulus prospect
* U.S. producer prices climb; Fed still expected to cut
(Updates with open of U.S. markets, changes dateline; previous
LONDON)
By Chuck Mikolajczak
NEW YORK, Sept 11 (Reuters) - A gauge of global equity
markets climbed on Wednesday, encouraged by signs of a thaw in
the trade war between the U.S. and China, while bond yields rose
as investors remained uncertain about how aggressive the
European Central Bank will be in providing stimulus at its
Thursday meeting.
Stocks on Wall Street rose, buoyed by hopes of progress on
the trade front after China announced its first batch of tariff
exemptions for 16 types of U.S. products, days ahead of a
planned meeting between trade negotiators. "There were apparently some words out of China where they
would be willing to talk about purchasing U.S. goods again,"
said Peter Jankovskis, co-chief investment officer at OakBrook
Investments LLC in Lisle, Illinois.
"In general, we are continuing to see some upbeat news and
we just have to wait and see what the follow through is."
The Dow Jones Industrial Average .DJI rose 66.38 points,
or 0.25%, to 26,975.81, the S&P 500 .SPX gained 8.19 points,
or 0.27%, to 2,987.58 and the Nasdaq Composite .IXIC added
45.90 points, or 0.57%, to 8,130.05.
MSCI's gauge of stocks across the globe .MIWD00000PUS
gained 0.43% and was on pace for a sixth session of gains. The
pan-European STOXX 600 index .STOXX rose 0.75%.
U.S. Treasury yields rose for a third day, tracking those in
the euro zone bond market, as investors were unsure about the
stimulus measures the ECB will engage in, with a late report on
Tuesday the central bank may delay quantitative easing adding to
the uncertainty. The 10-year yield hit a high of 1.752%, its highest level in
just over a month.
Benchmark 10-year notes US10YT=RR last fell 8/32 in price
to yield 1.7282%, from 1.702% late on Tuesday.
The European Central Bank's meeting comes ahead of next
week's policy meeting by the U.S. Federal Reserve which is still
widely expected to cut interest rates even as economic data
showed producer prices unexpectedly rose in August. Expectations for a 25-basis-point cut by the Fed at its next
meeting stand at 88.8%, according to CME's FedWatch, down from
92.3% on Tuesday. Market participants currently see no chance of
a 50-basis-point cut from the central bank.
President Donald Trump pushed the Fed to cut interest rates
to zero or into negative territory in a pair of Twitter posts on
Wednesday. In currencies, the euro weakened to a one-week low against
the dollar ahead of the ECB meeting, while the dollar was on
track for its best day in nearly two weeks against a basket of
major currencies. The dollar index .DXY rose 0.36%, with the euro EUR=
down 0.43% to $1.0996.
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US yields rise https://tmsnrt.rs/2A9yEA3
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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