GLOBAL MARKETS-Stocks rise with focus on stimulus; U.S. yield curve briefly inverts

* Next: Powell's Jackson Hole speech on Friday
* Renault , Fiat tie-up hopes boost shares

(Updates to U.S. market close)
By Rodrigo Campos
NEW YORK, Aug 21 (Reuters) - A global equities gauge rose on
Wednesday for a third day in four as bets on more economic
stimulus overcame, for now, worries over the rising prospect of
a global recession.
The brief inversion of the curve between 2-year and 10-year
U.S. Treasury yields loomed, however, as it is seen as a
harbinger for an economic contraction. The curve has at some
point inverted in four of the past six sessions. US/
Strong earnings in the United States and the report of talks
on a megamerger in European autos triggered gains in stocks, and
the improved risk sentiment drove safe-haven yields higher while
the yen and gold edged lower.
There was muted reaction across markets to minutes from the
Federal Reserve's meeting late last month. Policymakers debated
lowering interest rates more aggressively than the quarter-point
cut last month, while showing broad concern over a global
economic slowdown and trade tensions. The trade war escalated further after that Fed meeting, and
investors were cautious about the current validity of
policymakers' comments.
"It's really old news. This is from the July meeting and
what (Fed Chairman Jerome) Powell has to say on Friday is going
to be much, much more important than these minutes," said Mary
Ann Hurley, vice president in fixed-income trading at D.A.
Davidson in Seattle.
Traders expect that the Fed's annual Jackson Hole, Wyoming,
symposium and a Group of Seven summit this weekend will shed
light on the next steps policymakers will take to support
economic growth.
Auto shares .SXAP led European stocks higher after Italian
media suggested the merger talks between Fiat Chrysler FCHA.MI
and Renault RENA.PA have continued despite reports to the
contrary. In U.S. equities, earnings from Target and Lowe's boosted
consumer-centered stocks and overall market sentiment.
"As long as we have the healthy environment in jobs that we
have right now, it's going to be very difficult to shake
people's confidence," said JJ Kinahan, chief market strategist
at TD Ameritrade in Chicago. "At the end of the day, if people
are employed, they're going to go out and spend some money."
The Dow Jones Industrial Average .DJI rose 240.29 points,
or 0.93%, to 26,202.73, the S&P 500 .SPX gained 23.92 points,
or 0.82%, to 2,924.43 and the Nasdaq Composite .IXIC added
71.65 points, or 0.90%, to 8,020.21. The pan-European STOXX 600 index .STOXX rose 1.21% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.70%. Emerging market stocks rose 0.31%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.16%
lower, while Japan's Nikkei .N225 lost 0.28%. RISE, YEN FALLS
Futures markets have fully priced a 25-basis-point cut in
next month's Fed meeting. On Wednesday, U.S. Treasury yields
rose as rising stock prices reflected improving risk sentiment.
Benchmark 10-year notes US10YT=RR last fell 9/32 in price
to yield 1.5893%, from 1.559% late on Tuesday. Germany sold 30-year bonds with a negative yield for the
first time at an auction on Wednesday, a milestone for a
fixed-income market where the entire curve now yields less than
zero. The very weak demand seen at the auction was
expected. West Texas crude futures fell after U.S. government data
showed a drawdown in domestic crude stockpiles but rises in
refined product inventories, while worries about a possible
global recession capped gains in Brent.
U.S. crude CLc1 fell 0.32% to $55.95 per barrel and Brent
LCOc1 was last at $60.40, up 0.62% on the day. In currencies, the dollar rose against the Swiss and
Japanese safe-haven currencies and the dollar index .DXY rose
0.12%, with the euro EUR= down 0.14% at $1.1083. Sterling
GBP= was last trading at $1.2123, down 0.37% on the day.
The Japanese yen JPY= weakened 0.37% versus the greenback
to 106.63 per dollar.
Spot gold XAU= dropped 0.3% to $1,502.15 an ounce.

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Global assets in 2019 http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets in 2019 http://tmsnrt.rs/2ihRugV
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