GLOBAL MARKETS-Wall Street rises along with Treasury yields as inflation heats up

(Updates to U.S. market open, changes byline, dateline;
previous LONDON)
By Stephen Culp
NEW YORK, April 9 (Reuters) - The S&P 500 and the Dow posted
modest gains on Friday, but the Nasdaq was lower, with
interest-rate sensitive stocks losing ground as Treasury yields
edged higher.
But all three major U.S. stock indexes were on track to post
weekly gains as upbeat economic data boosted investor risk
appetite ahead of the first-quarter earnings season.
"The reopening trade is still very much alive," said Oliver
Pursche, senior vice president at Wealthspire Advisors in New
York. "And you're seeing that in the relative underperformance
of the high-flying tech that did so well throughout the
shutdowns."
A Labor Department report showed producer prices rose last
month at twice the speed of February's growth, reviving some
inflation worries.
This, despite U.S. Federal Reserve Chairman Jerome Powell's
assurances on Thursday that the central bank is far more
concerned about the recent uptick in COVID-19 infections than
inflationary pressures. "Things are now getting back to normal from a period of
suppressed pricing," Pursche added. "Prices are getting back to
their equilibrium. One month of price spikes does not make a
trend."
The Dow Jones Industrial Average .DJI rose 72.26 points,
or 0.22%, to 33,575.83, the S&P 500 .SPX gained 1.68 points,
or 0.04%, to 4,098.85 and the Nasdaq Composite .IXIC dropped
36.54 points, or 0.26%, to 13,792.77.
European stocks were little changed, but remained on track
for their best week since November 2019 on evidence of growing
momentum in the global economic revival. The pan-European STOXX 600 index .STOXX rose 0.06% and
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
0.13%.
Emerging market stocks lost 0.95%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.83%
lower, while Japan's Nikkei .N225 rose 0.20%.
U.S. Treasury yields rose, hitting session highs 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 7/32 in price
to yield 1.655%, from 1.632% late on Thursday.
The 30-year bond US30YT=RR last fell 3/32 in price to
yield 2.327%, from 2.322% late on Thursday.
The dollar gained ground against a basket of world
currencies, 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 0.17%, with the euro EUR=
down 0.2% to $1.1888.
The Japanese yen weakened 0.31% versus the greenback at
109.60 per dollar, while Sterling GBP= was last trading at
$1.3727, down 0.04% 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 fell 0.03% to $59.58 per barrel and Brent
LCOcv1 was last at $63.17, down 0.05% 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 0.6% to $1,745.05 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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