GLOBAL MARKETS-Stocks edge up, dollar dips with G20 in focus

* MSCI ACWI advances, set for best first half since 1997
* Trump-Xi meeting at G20 in focus
* Dollar set for weakest month since start of 2018

(Updates with open of U.S. markets, changes byline, dateline;
previous LONDON)
By Chuck Mikolajczak
NEW YORK, June 28 (Reuters) - Stocks posted modest gains on
Friday and the dollar dipped ahead of a meeting on trade between
U.S. President Donald Trump and Chinese President Xi Jinping, as
global equities were poised to cap off their best first half
since 1997.
Trump and Xi will meet during a Group of 20 summit this
weekend in Osaka, Japan, for talks that could help resolve a
year-long trade war between China and the United States, as
signs of its dampening effect on global growth have become more
prevalent. Economic data on Friday showed U.S. consumer spending
increased moderately in May and prices rose slightly, pointing
to slowing economic growth and benign inflation pressures, which
could give the Federal Reserve enough leeway to cut interest
rates in July. Wall Street opened with slight gains, although each of the
major indexes were on pace to snap a three-week winning streak.
The S&P 500 was set for its best June performance since 1955.
"It feels like the market has priced in the best possible
outcome here," said Randy Frederick, vice president of trading
and derivatives for Charles Schwab in Austin, Texas.
"I continue to believe this is an asymmetrical risk – that
the upside here is a couple percent the downside is a whole lot
more than that if it falls apart."
The Dow Jones Industrial Average .DJI rose 30.17 points,
or 0.11%, to 26,556.75, the S&P 500 .SPX gained 5.56 points,
or 0.19%, to 2,930.48 and the Nasdaq Composite .IXIC added
11.10 points, or 0.14%, to 7,978.86.
European indexes also moved higher ahead of the meeting,
with Germany's trade-sensitive DAX leading the way with a gain
of more than 1%. The pan-European STOXX 600 index .STOXX rose 0.54% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.23%.
MSCI's index was also set to break a three-week streak of
gains but also on course for its best month since January,
gaining more than 6% in June as equities rallied after major
central banks around the globe pivoted towards easier monetary
policy stances.
That shift came as trade negotiations between the United
States and China broke down earlier this year. Now markets are
betting on an interest rate cut by the U.S. Federal Reserve of
at least a quarter of a percentage point, a virtual certainty as
early as the next policy meeting in July, according to CME's
FedWatch tool.
On Thursday, China's central bank pledged to support a
slowing economy, before the release of data that is expected to
show China's factory activity slowed for a second consecutive
month in June. Currency markets also reflected caution, as the Japanese yen
JPY= crept higher to reverse a three-day losing streak against
the dollar. The yen strengthened 0.02% versus the greenback at
107.78 per dollar.
The dollar index .DXY fell 0.17% against a basket of other
currencies .DXY and set to turn in its weakest monthly
performance since January 2018 as anticipation of a Fed rate cut
has pushed the index down about 1.7% this month.
Benchmark 10-year notes US10YT=RR last fell 1/32 in price
to yield 2.0068%, from 2.005% late on Thursday. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
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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