GLOBAL MARKETS-Global shares struggle as U.S. bond yields march higher

(Updates throughout)
* Focus on Biden's multitrillion-dollar plan
* UST 10-yr yields set for largest quarterly gain since Q4
2016
* MSCI's All Country World Index 0.1% lower
* Deliveroo shares plunge 30% in London debut
* U.S. dollar near one-year highs against Japanese yen
* Oil ticks higher, gold edges down

By Tom Arnold and Swati Pandey
LONDON/SYDNEY, March 31 (Reuters) - Global stocks wavered on
Wednesday while the safe-haven dollar held near five-month highs
as Treasury yields resumed their upward march before U.S.
President Joe Biden announces a multitrillion-dollar plan to
rebuild America's infrastructure.
The relentless rise of U.S. bond yields, with 10-year yields
US10YT=TWEB on course for their biggest quarterly rise since
the fourth quarter of 2016, weighed on sentiment even as Chinese
data suggested a solid global economic recovery.
Europe's regional STOXX 600 index .STOXX was up 0.2%, on
course for its second straight month of gains. Britain's FTSE
100 .FTSE was down 0.1% as shares in online food delivery firm
Deliveroo ROO.L slumped as much as 30% on their first day of
trading. Britain's economy grew more than expected, 1.3%, in the
final quarter of last year, but still shrank the most in more
than three centuries in 2020 as a whole. E-mini futures for the S&P 500 ESc1 were a shade higher.
Some global banks are facing billions of dollars in losses
after U.S. investment firm Archegos Capital Management defaulted
on margin calls, putting investors on edge about who else might
be exposed.
But focus for much of the quarter has been on the surge in
bond yields, making equity valuations look lofty, particularly
for major tech companies that have borne the brunt of the
sell-off.
On Wednesday, 10-year Treasury yields US10YT=TWEB rose as
high as 1.746% from Tuesday's 1.708% and were last at 1.723%.
Euro zone bonds calmed, but Germany's 10-year yield was set
for its biggest quarterly jump since the fourth quarter of 2019.
Investors were looking ahead to Biden's trip to Pittsburgh
on Wednesday, where he is expected to push for a "Build Back
Better" plan. Its price tag could be as high as $4 trillion to
pay for conventional roads and bridges while also tackling
climate change and domestic policy issues like income equality.
"The plans as announced have a long and tortuous journey to
make it through Congress and thus the end result is likely to be
nine months or more away and may well look very different indeed
once it has been through that political wranglings on the Hill,"
said James Athey, investment director at Aberdeen Standard
Investments. "If investors are weighing the risks appropriately,
there shouldn't be much impact on markets in the short term."
MSCI's All Country World Index, which tracks stocks across
49 countries, traded 0.1% lower. .MIWD00000PUS
MSCI's broadest index of Asia-Pacific shares outside of
Japan .MIAPJ0000PUS fell 0.3%, its first monthly loss in five
months.
Sentiment in Asia remained downbeat despite data showing
China's factory activity expanded faster than expected in March.
Chinese services surged, too. China's blue-chip index .CSI300 sank 0.9% and Japan's
Nikkei .N225 slid 0.9% as investors sold financial shares amid
growing uncertainty over the fallout from the margin calls that
brought down Archegos Capital.
In foreign-exchange markets, currencies were lower against
the U.S. dollar. The dollar hit a one-year high of 110.48
against the yen as investors bet fiscal stimulus and aggressive
vaccinations would boost the U.S. economic recovery. FRX/
JPY=
The dollar is on track for a third straight monthly rise
against the yen and its biggest since the end of 2016.
The dollar index =USD held above 93 after surging as high
as 93.357 on Tuesday. It has climbed from close to 90 at the
start of March, on course for its best month since 2016.
In commodities, Brent crude LCOc1 rose 0.5% to $64.47 a
barrel. U.S. crude CLc1 added 0.6% to $64.53 barrel.
Gold prices slipped to 1,684.40 an ounce.

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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country World Index Market Cap http://tmsnrt.rs/2EmTD6j
Deliveroo shares plunge in London debut https://tmsnrt.rs/3rLH6xX
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