GLOBAL MARKETS-Stocks gain on hopes of central bank stimulus

* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

By Ritvik Carvalho
LONDON, Sept 9 (Reuters) - Global stock markets gained on
Monday as investors pinned their hopes on stimulus that's
expected from the world's central banks to support slowing
growth.
European markets opened higher after data showed a surprise
rise in German exports and on expectations of stimulus by the
European Central Bank later this week. The pan-European STOXX
600 index .STOXX was up 0.1% by 0747 GMT. .EU
MSCI's All Country World Index .MIWD00000PUS , which tracks
shares across 47 countries, was up 0.05%.
Germany's trade-sensitive DAX index .GDAXI rose 0.2% after
data showed that seasonally adjusted exports rose 0.7% in July.
A Reuters poll of economists had pointed to a drop of 0.5%.
The data were a positive surprise in largely gloomy readouts
from major economies since Friday, which heightened expectations
of stimulus from central banks.
On Friday, U.S. jobs growth slowed more than expected in
August while data over the weekend from China
showed the country's exports unexpectedly shrank as shipments to
the U.S. slowed The two countries have been locked in a trade dispute since
early 2018, and investors fear escalating tariffs between them
-- already curtailing growth -- might tip the global economy
into recession as early as next year.
"If all the currently proposed tariffs are implemented, we
foresee that growth in the first half of next year will slow
toward the brink of a recession," said Mark Haefele, chief
investment officer at UBS Global Wealth Management.
But the prospect of central-bank support kept risk sentiment
alive and well. MSCI's broadest index of Asia-Pacific shares
outside Japan .MIAPJ0000PUS rose 0.2% and E-mini futures for
the S&P 500 index ESc1 up 0.15%.
On Friday, China's central bank cut reserve requirements for
a seventh time since early 2018 to free funds for lending
Federal Reserve Board Chairman Jerome Powell said
the Fed would continue to "act as appropriate" to sustain U.S.
economic expansion The European Central Bank is
expected to cut rates this week In currencies, euro fell to a five-day low but recovered
ground by 0820 GMT to trade 0.1% higher at $1.1036. EUR=EBS
The dollar was 0.02% higher against a basket of currencies.
.DXY It traded at 106.940 yen JPY= , off the one-month peak
of 107.235 scaled late last week.
The Australian dollar AUD=D4 , sensitive to shifts in risk
appetite, remained near a five-week peak of $0.6862 set on
Friday.
The pound was little changed at $1.2287 GBP=D3 . Sterling
has bounced from a three-year low set a week ago as the threat
of Britain leaving the European Union without a deal on Oct. 31
seemed to diminish.
But political uncertainty remains, preventing the pound from
gaining ground. British lawmakers will vote on Monday on whether
to hold an early election.
In fixed income, longer-dated euro zone government bond
yields ticked higher, with most yields up 3 to 4 basis points in
early trade. DE30YT=RR FR30YT=RR NL30YT=RR IT50YT=RR .
Oil rose on expectations that Saudi Arabia, the world's
largest oil exporter, will continue to support output cuts by
OPEC and other producers to prop up prices under new Energy
Minister Prince Abdulaziz bin Salman. O/R