GLOBAL MARKETS-Shares edge up as cyclical stocks provide support; yields rise

* Wall Street supported by rise in cyclical stocks
* Longer-term yields climb, 30-year TIPS yield goes positive
* Gold hits a seven-month low, oil prices slip
* Bitcoin hits $1 trillion market cap

(Updates prices)
By Saqib Iqbal Ahmed
NEW YORK, Feb 19 (Reuters) - A gauge of global equity
markets snapped a 3-day losing streak to edge higher on Friday
as investors sold technology shares and rotated into
economically-sensitive cyclical stocks in anticipation the U.S.
economy will boom on pent-up demand once the coronavirus
pandemic is subdued.
Oil prices fell from recent highs as Texas energy companies
began preparations to restart oil and gas fields shuttered by
freezing weather, while the U.S. Treasury yields climbed.
The MSCI's global stock index .MIWD00000PUS was up 0.24%
at 680.3, after losing ground for three consecutive sessions.
On Wall Street, stocks steadied as cyclical sectors edged
higher while tech names, which had started the session modestly
stronger, reversed course to extend their recent decline.
A battle continues between tech-led growth stocks and
cyclicals, companies that are heavily affected by economic
conditions, said Tim Ghriskey, chief investment strategist at
Inverness Counsel in New York.
"When the economy is roaring, they're roaring. When the
economy is weakening, they're weakening," Ghriskey said. "The
economy will roar, at least for a period of time. There's huge
pent-up demand, whether just for travel or going back to work."
The Dow Jones Industrial Average .DJI rose 50.82 points,
or 0.16%, to 31,544.16, the S&P 500 .SPX lost 1.39 points, or
0.04%, to 3,912.58 and the Nasdaq Composite .IXIC added 22.82
points, or 0.16%, to 13,888.18.
The S&P 500 technology .SPLRCT and communication services
.SPLRCL sectors fell, while financials .SPSY , industrials
.SPLRCI , energy .SPNY and materials .SPLRCM rose more than
1%.
European shares edged higher on Friday as an upbeat earnings
report from Hermes HRMS.PA boosted confidence in a broader
economic recovery. The pan-European STOXX 600 index .STOXX
closed up 0.53%.
U.S. Treasury yields on the longer end of the curve rose to
new one-year highs on Friday as improved risk appetite boosted
Wall Street, while the yield on 30-year inflation-protected
securities (TIPS) turned positive for the first time since June.
Core bond yields have pushed higher globally, led by the
so-called reflation trade, where investors wager on a pick-up in
growth and inflation. Growing momentum for coronavirus vaccine
programs and hopes of massive fiscal spending under U.S.
President Joe Biden have spurred reflation trades.
The benchmark 10-year yield US10YT=RR was last up 5.6
basis points at 1.3448%, its highest level in about a year.
Oil prices retreated from recent highs for a second day on
Friday as Texas energy companies began preparations to restart
oil and gas fields shuttered by freezing weather.
Unusually cold weather in Texas and the Plains states
curtailed up to 4 million barrels per day (bpd) of crude oil
production and 21 billion cubic feet of natural gas, analysts
estimated.
Brent crude futures LCOc1 settled at $62.91 a barrel, down
$1.02 or 1.6%, while U.S. crude oil futures CLc1 settled at
$59.24 a barrel, down $1.28, or 2.1%.
Copper jumped to its highest in more than nine years on
Friday and towards a third straight weekly gain as tight
supplies and bullish sentiment towards base metals continued
after the Chinese New Year. Spot gold XAU= was down 0.25% at $1,779.96 an ounce.
The dollar lost ground on Friday, extending Thursday's
decline as improved risk appetite sapped demand for the
safe-haven currency and drew buyers to riskier, higher-yielding
currencies. The dollar index =USD was off 0.245%. Bitcoin hit yet another record high on Friday, hitting a
market capitalization of $1 trillion, blithely shrugging off
analyst warnings that it is an "economic side show" and a poor
hedge against a fall in stock prices. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
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
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>