GLOBAL MARKETS-World stock markets hit two-week high as inflation worries ease

* ECB says it will speed up bond purchases
* U.S. initial jobless claims less than expected
* Graphic: World FX rates http://tmsnrt.rs/2egbfVh

(Updates to open of U.S. markets, changes byline, dateline;
previous LONDON)
By Chuck Mikolajczak
NEW YORK, March 11 (Reuters) - A gauge of global stocks rose
for a third straight session on Thursday to hit its highest
level in two weeks, as a dip in government bond yields helped
ease inflation worries and provided a boost to stocks.
Euro zone bond yields fell after the European Central Bank
said it was ready to accelerate money-printing to keep a lid on
euro zone borrowing costs, using its 1.85 trillion Pandemic
Emergency Purchase Program (PEPP) more generously over the
coming months to stop any unwarranted rise in debt financing
costs. Germany's 10-year government bond yield DE10YT=RR last
rose 8/32 in price to yield -0.334%, after reaching as low as
-0.367, its lowest level since Feb. 18, and further away from
the near one-year high of -0.203% in late February.
Yields on the benchmark 10-year Treasury fell as low as
1.475%, the first time it had fallen below 1.5% in a week before
turning slightly higher.
On Wall Street, the easing inflation worry helped support
equities, with the highly valued technology sector .SPLRCT
leading the way higher, up 2.02%. Expensive stocks, many of
which are in the tech sector, have been highly sensitive to the
rise in yields.
In contrast, shares of bank stocks .SPXBK only gained
0.13%.
"The inflation scare that we saw last week has subsided as
bond yields calm down," said Art Hogan, chief market strategist
at National Securities in New York.
"The market sentiment is turning more optimistic as we get
better results from (COVID-19) vaccines that help towards a
faster pace of herd immunity."
The Dow Jones Industrial Average .DJI rose 282.47 points,
or 0.87%, to 32,579.49, the S&P 500 .SPX gained 43.16 points,
or 1.11%, to 3,941.97 and the Nasdaq Composite .IXIC added
267.60 points, or 2.05%, to 13,336.43.
Sentiment was also boosted by weekly jobless claims data,
which pointed to a recovering U.S. labor market as vaccine
rollouts have helped lead to economic reopenings. 10-year notes US10YT=RR last fell 5/32 in price
to yield 1.5352%, up from 1.52% late on Wednesday.
Investors will now eye an auction of 30-year debt on
Thursday, seeking to cover massive shorts. A weak seven-year
auction in late February helped fuel inflation concerns and sent
yields higher. European stocks climbed, with the pan-European STOXX 600
index reaching a one-year peak and on track for its fourth
straight day of gains. The STOXX 600 index .STOXX rose 0.46%
and MSCI's gauge of stocks across the globe .MIWD00000PUS
gained 1.27%.
Analysts largely expect inflation to pick up as vaccine
rollouts lead to a reopening of the economy, but worries persist
that additional stimulus in the form of a $1.9 trillion
coronavirus relief package set to be signed by U.S. President
Joe Biden could overheat the economy. The dollar was weaker for a third straight day coming off a
3-1/2-month high of 92.506. The dollar index =USD fell 0.291%,
with the euro EUR= up 0.31% to $1.1962.
Oil prices resumed their climb following two days of
declines, buoyed by the brightening economic outlook and a steep
decline in U.S. fuel stocks.
U.S. crude CLc1 recently rose 1.77% to $65.58 per barrel
and Brent LCOc1 was at $69.17, up 1.87% on the day.

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Emerging markets http://tmsnrt.rs/2ihRugV
Global asset performance in 2021 http://tmsnrt.rs/2yaDPgn
Global currencies vs. dollar YTD http://tmsnrt.rs/2egbfVh
MSCI All Country World Index Market Cap http://tmsnrt.rs/2EmTD6j
Jobless claims https://tmsnrt.rs/2N9a3pd
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