GLOBAL MARKETS-U.S.-China trade optimism boosts stocks, bond yields

* MSCI world share index hits highest level since late July
* S&P 500 within striking distance of record
* China to exempt some agricultural products from tariffs
-Xinhua
* Bond yields at multi-week highs as recession worries ebb

(Updates with close of European markets)
By Chuck Mikolajczak
NEW YORK, Sept 13 (Reuters) - A gauge of global stocks was
on track for an eighth straight day of gains and benchmark
government bond yields advanced on Friday after signs of
progress in U.S.-China trade talks, as well as a solid U.S.
retail sales report, allayed recession worries.
Stocks on Wall Street were little changed, as initial gains
fueled by a string of positive signals on the trade war between
the world's two largest economies were curbed by weakness in
tech companies Apple AAPL.O and Broadcom AVGO.O . Financials
.SPSY were among the best performers, aided by the rise in
bond yields.
The benchmark S&P 500 index stood about 0.5% from its record
closing high set on July 26.
U.S. President Donald Trump said on Thursday he was
potentially open to an interim trade deal with China, although
he stressed an "easy" agreement would not be possible. That was
followed up on Friday by China's official Xinhua News Agency
announcing the country would exempt some U.S. agricultural
products, such as pork and soybeans, from additional tariffs.
Reports showing solid U.S. retail sales and a measure of
U.S. consumer sentiment above expectations added to the optimism
and eased concerns about economic growth, although the Federal
Reserve was still widely expected to cut rates at its policy
meeting on Wednesday. The Bank of Japan is to follow with its
announcement on Thursday. "We've been up eight straight days and typically you don't
go past nine. It's rare that you do that, so I would think the
market is set for a breather, and yet nothing is getting hurt
except Apple and Broadcom," said Bruce Bittles, chief investment
strategist at Robert W. Baird & Co in Sarasota, Florida.
"We have had a softening of the language from both the U.S.
and China in recent weeks and that is really what helped push
the market out of this trading range we have been locked into
since July and allowed the S&P to cross 3,000 again."
The Dow Jones Industrial Average .DJI rose 46.58 points,
or 0.17%, to 27,229.03, the S&P 500 .SPX lost 1.37 points, or
0.05%, to 3,008.2 and the Nasdaq Composite .IXIC dropped 20.98
points, or 0.26%, to 8,173.49.
European shares closed higher for a fourth straight session
to notch their fourth straight week of gains, as the positive
tone surrounding the U.S.-China trade talks pushed cyclical
sectors such as banks and miners higher. The pan-European STOXX 600 index .STOXX rose 0.34% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.22%. MSCI's index was on pace for an eighth straight day of
gains, its longest winning streak in nearly two years.
The U.S. economic data and easing of trade tensions helped
lift bond yields to multi-week highs, with yields on 10-year
notes reaching a six-week high and those on 30-year bonds
touching their highest in five weeks. Benchmark 10-year notes US10YT=RR last fell 24/32 in price
to yield 1.8747%, from 1.791% late on Thursday.
The euro gained against the dollar for a second day,
although gains were pared after the release of the U.S. data, as
the European Central Bank on Thursday exempted euro zone banks
from a penalty charge, which analysts say will reduce the
currency impact of new stimulus. The dollar index .DXY fell 0.1%, with the euro EUR= up
0.13% to $1.1075.
Oil prices dipped, and both Brent and WTI were on track for
a weekly decline. U.S. crude CLcv1 fell 0.29% to $54.93 per barrel and Brent
LCOcv1 was last at $60.28, down 0.17% on the day.

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Global assets in 2019 http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
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