GLOBAL MARKETS-Wall Street gains, long-dated Treasury yields rise on stimulus progress

* All three major U.S. stock indexes turn positive
* 10-year Treasury yields highest since early June
* Europe posts fourth day of losses
* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh

By Stephen Culp
NEW YORK, Oct 22 (Reuters) - U.S. stocks oscillated for much
of the session on Thursday but turned positive by mid-afternoon
on optimism about an imminent U.S. fiscal stimulus deal, as
global COVID-19 cases surged.
All three major U.S. stock indexes were last solidly green
and long-dated Treasury yields rose on news of two opposing
sides in Washington nearing a stimulus deal.
"The market's been having a bit of a volatile day, it sold
off and battled back," said Tim Ghriskey, chief investment
strategist at Inverness Counsel in New York. "The main thing is
positive chatter on stimulus. It appears they're close to an
agreement."
House Speaker Nancy Pelosi said negotiations were
progressing and that legislation could be hammered out "pretty
soon." While a White House spokesman added a further note of
optimism, saying "this is really the most optimistic we've felt
about getting a deal," President Trump's economic adviser Larry
Kudlow warned "significant policy differences" remain.
"This positive (fiscal aid) chatter benefits the overall
market and economically sensitive stocks because it means more
money in people's hands and more economic activity," Ghriskey
added.
The United States was on the brink of a widespread
coronavirus outbreak, with nearly two-thirds of states in a
danger zone and six, including election battleground Wisconsin,
reported a record one-day increase in COVID-19 deaths on
Wednesday. U.S. economic data surprised to the upside, as jobless
claims fell more than expected and existing home sales blew past
estimates to more than a 14-year high. The Dow Jones Industrial Average .DJI rose 162.89 points,
or 0.58%, to 28,373.71, the S&P 500 .SPX gained 17.51 points,
or 0.51%, to 3,453.07 and the Nasdaq Composite .IXIC added
17.83 points, or 0.16%, to 11,502.53.
European stocks seesawed through much of the day but closed
in the red for the fourth straight day. Still, they settled well off session lows, trimming losses
after Britain's Finance Minister announced billions of pounds in
pandemic relief for hard-hit businesses. Coronavirus cases on the continent surged to a record high,
with Spain becoming the first Western European country to exceed
1 million infections and France, Britain and Italy all seeing
recent record increases.
The pan-European STOXX 600 index .STOXX lost 0.14% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.08%.
Emerging market stocks lost 0.20%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.29%
lower, while Japan's Nikkei .N225 lost 0.70%.
Long-dated Treasury yields hit four-month highs and the
yield curve steepened on news of progressing fiscal aid talks.
Benchmark 10-year yields hit their highest since early June.
Benchmark 10-year notes US10YT=RR last fell 8/32 in price
to yield 0.8428%, from 0.816% late on Wednesday.
The 30-year bond US30YT=RR last fell 17/32 in price to
yield 1.6527%, versus 1.629% late on Wednesday.
Crude prices recovered some of the ground lost in the
previous session after higher U.S. gasoline inventories signaled
deteriorating demand. U.S. crude CLcv1 rose 1.52% to settle at $40.64 per
barrel, while Brent LCOcv1 , yet to settle, was last up 1.68%
at $42.44 per barrel.
Ongoing uncertainties surrounding the timing and size of a
U.S. pandemic aid package helped the dollar edge up from a
seven-week low against a basket of world currencies.
The dollar index .DXY rose 0.34%, with the euro EUR=
down 0.36% to $1.1818.
The Japanese yen weakened 0.27% versus the greenback at
104.89 per dollar, while sterling GBP= was last trading at
$1.3082, down 0.47% on the day.
Gold dipped as better-than-expected U.S. economic data and a
strengthening dollar dampened the safe-haven metal's appeal.
Spot gold XAU= dropped 1.1% to $1,903.99 an ounce.

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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
Emerging market currencies being split by U.S. election https://tmsnrt.rs/3iY7a4i
Coronavirus vs financial markets https://tmsnrt.rs/300KB8r
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