GLOBAL MARKETS-Wall Street gains, Treasury yields rise as inflation picks up steam

(Updates to afternoon)
By Stephen Culp
NEW YORK, April 9 (Reuters) - Wall Street gained ground on
Friday after solid U.S. inflation data and an uptick in Treasury
yields suggested the economic recovery from the pandemic
recession was gaining momentum.
All three major U.S. stock indexes were on track to post
weekly gains as upbeat economic data boosted risk appetite ahead
of first-quarter earnings.
Transports, seen as a proxy for economic health, were on
track for their 10th straight weekly advance.
"It's a nice end to a good week," said Ryan Detrick, senior
market strategist at LPL Financial in Charlotte, North Carolina.
"The rise in transports is a good sign that the economy is
beginning to open up."
A Labor Department report showed producer prices rose last
month at twice the speed of February's growth, reviving some
inflation worries.
"No question we're seeing prices increase at the producer
level and the big question is when that transfer down to the
consumer?" Detrick added. "The Fed has stressed from the very
beginning these increases will be transitory."
Indeed, U.S. Federal Reserve Chairman Jerome Powell offered
assurances on Thursday that the central bank is far more
concerned about the recent uptick in COVID-19 infections than
inflationary pressures. The Dow Jones Industrial Average .DJI rose 148.06 points,
or 0.44%, to 33,651.63, the S&P 500 .SPX gained 12.84 points,
or 0.31%, to 4,110.01 and the Nasdaq Composite .IXIC added
9.11 points, or 0.07%, to 13,838.42.
European stocks ended nominally higher, but marked their
longest winning streak since November 2019 on rising hopes of a
rapid economic rebound. The pan-European STOXX 600 index .STOXX rose 0.08% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.05%.
Emerging market stocks lost 1.02%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.85%
lower, while Japan's Nikkei .N225 rose 0.20%.
U.S. Treasury yields rose in the wake of the PPI report,
which provided further evidence that the world's largest economy
was on a stable road to recovery from the pandemic. Benchmark 10-year notes US10YT=RR last fell 10/32 in price
to yield 1.6656%, from 1.632% late on Thursday.
The 30-year bond US30YT=RR last fell 13/32 in price to
yield 2.3418%, from 2.322% late on Thursday.
The dollar was up against a basket of world currencies as
inflation date lifted bond yields, but the greenback appeared
set for its softest week of the year on upbeat economic data and
the dovish Fed. The dollar index .DXY rose 0.11%, with the euro EUR=
down 0.11% to $1.1899.
The Japanese yen weakened 0.38% versus the greenback at
109.68 per dollar, while Sterling GBP= was last trading at
$1.3712, down 0.15% on the day.
Crude oil prices dipped on rising supply amid a mixed
picture on demand recovery from the COVID slump. U.S. crude CLcv1 dipped 0.47% to settle at $59.32 per
barrel, while Brent crude LCOc1 settled at $62.95 per barrel,
falling 0.4% on the day.
Gold withdrew from Thursday's one-month peak, weighed down
by a rebounding dollar and rising Treasury yields. Still, the
safe-haven metal appears headed for its first weekly gain in
three. Spot gold XAU= dropped 0.8% to $1,742.08 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 World Index Market Cap http://tmsnrt.rs/2EmTD6j
Dollar set for worst week of the year https://tmsnrt.rs/3mvEAdU
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