GLOBAL MARKETS-Stocks, yields steady with focus on Fed, central banks

* Fed likely to resist pressure to cut U.S. rates this week
* ECB forum, Bank of Japan also in focus
* Wall Street indexes open modestly higher
* Dollar index pulls back from June highs

(Updates with U.S. markets; changes dateline, previous London)
By Lewis Krauskopf
NEW YORK, June 17 (Reuters) - A gauge of global stock
markets edged higher on Monday to build on monthly gains and
benchmark government bond yields hovered near multi-year lows as
investors girded for developments later in the week from central
banks in the United States and elsewhere.
The dollar fell against a basket of currencies .DXY after
touching its highest point since the start of June.
MSCI's gauge of stocks across the globe .MIWD00000PUS
gained 0.08%, as Wall Street's main indexes climbed in initial
trading.
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. The European Central Bank is also holding a forum in
Portugal this week, with the Bank of Japan also set to hold its
policy meeting later in the week. “With so much coming later this week as far as central bank
announcements, I think investors are basically in a holding
pattern," said Chris Gaffney, president of world markets at TIAA
Bank.
The Fed is expected to leave borrowing costs unchanged at a
policy meeting this week 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.
“I think expectations have been set of a rate cut have been
overdone so it will be interesting to see just how dovish the
tone is,” Gaffney said.
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. On Wall Street, the Dow Jones Industrial Average .DJI rose
46.03 points, or 0.18%, to 26,135.64, the S&P 500 .SPX gained
6.89 points, or 0.24%, to 2,893.87 and the Nasdaq Composite
.IXIC added 58.64 points, or 0.75%, to 7,855.30.
The pan-European STOXX 600 index .STOXX rose 0.02%. Shares
of Lufthansa LHAG.DE plunged 12% after the German airline
lowered its profit outlook for the full year 2019 citing intense
competition from low-cost rivals. U.S. Treasury yields edged higher in choppy trading, as
investors reversed safe-haven flows and booked profits on some
gains last week, but the mood was still cautious. Benchmark 10-year notes US10YT=RR last rose 1/32 in price
to yield 2.0924%, from 2.094% late on Friday.
Germany's 10-year bund yield DE10YT=RR , the benchmark for
Europe, was last at -0.24%. The dollar index .DXY fell 0.1%, with the euro EUR= up
0.18% to $1.1227. U.S. crude CLcv1 fell 0.17% to $52.42 per barrel and Brent
LCOcv1 was last at $61.89, down 0.19% on the day. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Trade tensions boost U.S. rate-cut expectations png 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
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