GLOBAL MARKETS-Global stocks rally as yields ease

(Updates to open of U.S. markets, changes byline, dateline;
previous LONDON)
* Nasdaq rallies after confirming correction
* Oil prices retreat
* U.S. Treasury yields fall

By Chuck Mikolajczak
NEW YORK, March 9 (Reuters) - A gauge of global stocks was
on track for its biggest one-day percentage climb in a week on
Tuesday as a fall in U.S. Treasury yields eased concerns the
economic recovery could overheat and lead to
stronger-than-expected inflation.
U.S. Treasury yields fell with eyes on the $120 billion
auctions of 3-, 10-, and 30-year Treasuries this week, as a weak
7-year note sale that prompted a spike in yields two weeks ago
was followed by another soft auction last week. Benchmark 10-year notes US10YT=RR last rose 10/32 in price
to yield 1.5594%, from 1.594% late on Monday. The note has
topped 1.6% three times since Feb. 25, reaching levels not seen
in over a year.
On Wall Street, each of the major averages were higher, led
by a gain of more than 3% in the Nasdaq, putting the tech-heavy
index on track for its biggest one-day percentage rise in just
over four months. The index has been highly susceptible to
climbing rates, and Monday's retreat left it down more than 10%
from its Feb. 12 close, confirming what is widely considered to
be a correction. "It's the tail wagging the dog; it is interesting the focus
has really shifted to the impact of extremely aggressive fiscal
spending on the likelihood of inflationary pressures becoming
once more a mainstay of the investing landscape," said Peter
Kenny, founder of Kenny's Commentary LLC and Strategic Board
Solutions LLC in Denver.
"This is an expected, highly predictable, and, I dare say,
welcome response, and it is all about velocity."
The Dow Jones Industrial Average .DJI rose 263.57 points,
or 0.83%, to 32,066.01, the S&P 500 .SPX gained 66.58 points,
or 1.74%, to 3,887.93 and the Nasdaq Composite .IXIC added
394.01 points, or 3.12%, to 13,003.18.
In Europe, a fall in yields helped stocks shrug off data
showing a bigger than expected fall in fourth-quarter euro zone
economic output, although gains were less pronounced than in the
United States after European equities jumped more than 2% on
Tuesday. Investors will also closely watch a European Central Bank
meeting later this week to see if policymakers have decided to
step up the pace of emergency bond purchases to appease skittish
markets.
Data on Tuesday showed the ECB barely nudged up its
emergency bond purchases last week even before subtracting debt
that matured over that period, raising fresh questions about the
central banks' resolve to curb a bond market sell-off.
The pan-European STOXX 600 index .STOXX rose 0.72% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
1.48%.
The speedier rollout of COVID-19 vaccines in some countries
and the United States' planned $1.9 trillion stimulus package
helped underpin a brighter global economic outlook, the
Organisation for Economic Cooperation and Development (OECD)
said, as it raised its 2021 growth forecast to 5.6%.

Germany's 10-year government bond yield DE10YT=RR
DE10YT=RR last rose 6/32 in price to yield -0.298%, from
-0.278% on Monday, moving further away from the near one-year
high of -0.203% in late February. In foreign exchange markets, the dollar index =USD backed
away from a 3-1/2-month high, allowing riskier currencies such
as the Aussie and the Kiwi dollar to move higher.
The dollar index =USD fell 0.312%, with the euro EUR= up
0.34% to $1.1883.
Oil prices backed off earlier highs in choppy trading, with
Brent dipping back to the $68 mark as investors weighed easing
concerns over a supply disruption in Saudi Arabia with the
likelihood of limited supply from OPEC+ output limits.
U.S. crude CLc1 recently fell 0.57% to $64.68 per barrel
and Brent LCOc1 was at $68.12, down 0.18% on the day.

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2021 asset performance http://tmsnrt.rs/2yaDPgn
World FX rates in 2021 http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country World Index Market Cap http://tmsnrt.rs/2EmTD6j
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