GLOBAL MARKETS-Stocks, Treasuries climb on bets for U.S. rate cut

* U.S. stocks mostly up in early trading
* Dollar slips further
* Oil slides; data shows surprise build in U.S. crude
stockpiles

(Updates with early U.S. markets activity, changes dateline,
previous LONDON)
By Caroline Valetkevitch
NEW YORK, June 5 (Reuters) - Major world stock markets edged
higher and the U.S. Treasuries market resumed its recent rally
on Wednesday as investors bet that the U.S. Federal Reserve
would cut interest rates and help boost a sluggish global
economy.
Underscoring concerns over growth was a report by U.S.
payrolls processor ADP Wednesday that showed U.S. private
employers added 27,000 jobs in May, well below economists'
expectations and the smallest monthly gain in more than nine
years. A flare-up in trade tensions between the United States and
China hurt world stocks in May and triggered fears of an
impending recession.
Yields on U.S. two-year Treasury notes - sensitive to
traders' view on changes in Fed policy - hit their lowest since
December 2017 following the ADP data. The inversion between U.S.
3-month bill rates and 10-year yields continued for a ninth
straight session.
"The ADP number does raise some concerns about the further
impact of tariffs. It adds to the case of interest rate cuts,
the odds of that happening are going up," said Scott Brown,
chief economist at Raymond James in St. Petersburg, Florida.
Comments from Fed Chairman Jerome Powell and other Fed
officials this week helped limit equity market losses as they
warned the trade war may force them to respond, prompting
investors to price in possible rate cuts. Interest rate futures show the U.S. central bank will start
cutting rates as soon as next month, with as many as three rate
cuts priced by year-end.
The benchmark S&P 500 and Dow indexes were trading higher
while the Nasdaq turned lower by late morning.
The Dow Jones Industrial Average .DJI rose 108.36 points,
or 0.43%, to 25,440.54, the S&P 500 .SPX gained 5 points, or
0.18%, to 2,808.27 and the Nasdaq Composite .IXIC dropped 6.19
points, or 0.08%, to 7,520.93.
MSCI's broad gauge of stocks across the globe
.MIWD00000PUS was up for a third day, gaining 0.35%. The
pan-European STOXX 600 index .STOXX rose 0.20%.
In the U.S. Treasuries market, benchmark 10-year notes
US10YT=RR last rose 5/32 in price to yield 2.1054%, from
2.121% late on Tuesday.
Earlier, Germany's 10-year bond yield reached a record low
and Italian debt held on to this week's gains as investors
ramped up their bets on a generous loan package for banks in the
euro zone as well as a U.S. rate cut. GVD/EUR
The U.S. dollar weakened further in the wake of the recent
Fed comments.
The dollar index .DXY , which tracks the greenback versus a
basket of six currencies, fell 0.107 points or 0.11%, to 96.965.
The yen JPY= was last down 0.11% at $108.0200.
Oil prices resumed their slide, extending losses after data
showing a surprise build in U.S. crude stockpiles.
U.S. crude CLcv1 fell 2.51% to $52.14 per barrel.

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World FX rates in 2019 http://tmsnrt.rs/2egbfVh
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
Emerging markets in 2019 http://tmsnrt.rs/2ihRugV
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