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GLOBAL MARKETS-Equities edge higher on tech rebound; oil slips

Thu, 10th Sep 2020 15:21

* MSCI world index gains 0.62%

* Oil prices remain under pressure

* Euro jumps nearly 1% after ECB meeting
(Adds quote, adds graphic, updates through mid-morning trading)

By David Randall

NEW YORK, Sept 10 (Reuters) - Global equity benchmarks edged
higher and U.S. government bonds fell on Thursday as investors
weighed hopes of a rebound in U.S. technology stocks against the
European Central Bank's decision to leave its stimulus program
unchanged despite choppy global economic data.

MSCI's broadest index of Asia-Pacific shares outside Japan
snapped its longest losing streak since February
with a 0.7% gain. Japan's Nikkei rose 0.9% and Chinese
blue chips rose 0.8%.

"It's too soon to say whether the rout is over, or whether
last night's recovery is simply a pause," ANZ analysts said in a
note on Thursday.

MSCI's gauge of stocks across the globe
gained 0.62% following modest declines in Europe and gains in
Asia.

In mid-morning trading on Wall Street, the Dow Jones
Industrial Average rose 163.76 points, or 0.59%, to
28,104.23, the S&P 500 gained 20.13 points, or 0.59%, to
3,419.09 and the Nasdaq Composite added 117.54 points,
or 1.05%, to 11,259.10.

The ECB's decision to not ramp up its stimulus program now
bolstered the euro, which has gained more than 8% against the
dollar since the spring and more than 4% against a basket of
currencies weighted by the bloc's foreign trade.

The dollar index fell 0.478%, with the euro up
0.83% to $1.19.

Economists said the ECB will likely have to take more action
to support its economy, possibly in December.

"But by resisting calls to cut interest rates deeper into
negative territory, the bank has consolidated the appeal of the
euro to global investors. It is now walking a tight-rope of
currency appreciation, as it dare not let the euro rise too high
for fear of hampering the recovery of export-dependent economies
like Germany," said Ulas Akincilar, head of trading at the
online broker Infinox.

In the United States, initial claims for state unemployment
benefits came in slightly higher than expectations and totaled a
seasonally adjusted 884,000 for the week ended Sept. 5, matching
the number of applications received in the prior week as layoffs
and furloughs persisted across industries.

The U.S. Senate is set to vote later on Thursday on a
Republican bill that would provide around $300 billion in new
coronavirus aid, far below the $3 trillion Democrats have said
is needed to stimulate an ailing economy and help Americans
struggling through the pandemic.

Mizuho Bank's head of economics and strategy in Singapore,
Vishnu Varathan, said investors were grappling with whether this
month's steep U.S. tech sell-off was really done, and beyond
that an increasingly uncertain U.S. political outlook and
persistent Sino-U.S. tensions.

In a sign of the unsettled day in markets, safe haven assets
such as U.S. government bonds and risk assets such as oil both
slipped.

Benchmark 10-year notes last fell 4/32 in price
to yield 0.7148%, from 0.703% late on Wednesday.

Concerns about demand for fuel also had oil prices back
under pressure, in an indication of wavering confidence in
global growth.

U.S. crude recently fell 0.39% to $37.90 per barrel
and Brent was at $40.68, down 0.27% on the day.

(Reporting by David Randall; Editing by Will Dunham and Steve
Orlofsky)

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