GLOBAL MARKETS-Stocks, yields dip with Fed meeting on tap

* Fed likely to resist pressure to cut U.S. rates this week
* ECB forum, Bank of Japan also in focus
* Wall Street indexes up, Nasdaq leads
* N.Y. Fed "Empire" business index posts record drop in June
* Oil prices fall over 1% amid economic worries

(Updates with close of U.S. trading)
By Lewis Krauskopf
NEW YORK, June 17 (Reuters) - A gauge of global stock
markets dipped slightly on Monday after a mostly strong month
and benchmark U.S. bond yields edged lower as investors awaited
developments this week from central banks in the United States
and elsewhere.
Oil prices slumped as more poor Chinese economic figures
fanned fears of lower worldwide oil demand. O/R
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
0.06%, as modest increases for Wall Street's main indexes led by
the tech-heavy Nasdaq were countered by some weakness in Europe.
The U.S. Federal Reserve is set to give its policy statement
on Wednesday, with expectations running high the central bank is
poised to cut interest rates this year. "You can't expect much of a bet to be made two days before
what may or may not be a pivotal Fed meeting and announcement,"
said Art Hogan, chief market strategist at National Securities
Corporation.
The European Central Bank is also holding a forum in
Portugal this week, with the Bank of Japan set to hold its
policy meeting later in the week. The Fed is expected to leave borrowing costs unchanged at
its meeting but possibly lay the groundwork for a rate cut later
this year, with concerns about the global economy fueled by a
heightening U.S.-China trade war.
The New York Federal Reserve said its gauge of business
growth in New York state posted a record fall this month to its
weakest level in more than 2-1/2 years, suggesting an abrupt
contraction in regional activity. "The Empire manufacturing numbers that came out were
dreadful," said Jack Ablin, Chief Investment Officer at Cresset
Wealth Advisors in Chicago. "We're back to that the idea that
bad news is good news, with the Fed meeting around the corner,
and that the Fed will respond with lower rates."
On Wall Street, the Dow Jones Industrial Average .DJI rose
22.92 points, or 0.09%, to 26,112.53, the S&P 500 .SPX gained
2.69 points, or 0.09%, to 2,889.67 and the Nasdaq Composite
.IXIC added 48.37 points, or 0.62%, to 7,845.02. The pan-European STOXX 600 index .STOXX lost 0.09%. Shares
of Lufthansa LHAG.DE plunged 12% after the German airline
lowered its profit outlook for the year, citing intense
competition from low-cost rivals. U.S. Treasury yields slipped in choppy trading, weighed down
by softer-than-expected U.S. economic data and persistent
pressure from the trade conflict with China. Benchmark 10-year notes US10YT=RR last rose 3/32 in price
to yield 2.0855%, from 2.094% late on Friday.
The dollar index .DXY fell 0.01%, with the euro EUR= up
0.06% to $1.1214. U.S. crude CLcv1 settled down 1.1% at $51.93 a barrel,
while Brent LCOcv1 settled at $60.94, down 1.7%.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Trade tensions boost U.S. rate-cut expectations https://tmsnrt.rs/2KdE2by
GRAPHIC-Global assets in 2019 http://tmsnrt.rs/2jvdmXl
GRAPHIC-World FX rates in 2019 http://tmsnrt.rs/2egbfVh
GRAPHIC-MSCI All Country World Index Market Cap http://tmsnrt.rs/2EmTD6j
GRAPHIC-China trade shock interactive https://tmsnrt.rs/2SRopIf
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>