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GLOBAL MARKETS-Global shares rise on strong U.S. equities, factory data

Wed, 15th Sep 2021 20:19

* Wall Street opens slightly higher

* Oil prices climb after drawdown in U.S. supplies

* China data adds to global growth worries

* Dollar index down
(Updates prices, adds closing price for oil)

By Elizabeth Dilts Marshall

NEW YORK, Sept 15 (Reuters) - Global shares inched up on
Wednesday on the strength of U.S. equities markets that were
boosted by positive factory data.

U.S. factory production data showed that manufacturing
remained strong despite a slowdown due to factory closures
related to Hurricane Ida and the ongoing microchip shortage.

Also out of the U.S. import prices declined for the first
time in 10 months in August. That followed Tuesday data from the
U.S. Labor Department showing that inflation cooled last month
and may have peaked.

The MSCI All Country World Index 0.21%. The
S&P 500 rose from more than a three-week low and the Dow
Jones index recovered from a near two-month trough hit on
Tuesday.

"The Delta wave is likely receding in the U.S. and globally,
and the pandemic recovery should restart," JPMorgan Securities
analyst Marko Kolanovic wrote, referring to the highly
infectious coronavirus delta variant.

The Dow Jones Industrial Average rose 230.55 points,
or 0.67%, to 34,808.12, the S&P 500 gained 33.31 points,
or 0.75%, to 4,476.36 and the Nasdaq Composite added
94.48 points, or 0.63%, to 15,132.24.

The pan-European STOXX 600 index was down 0.80%
after data showed that inflation in the U.K. hit a more than
nine-year high last month. Economists believe it was largely due
to a one-off boost that analysts said was likely to be
temporary.

All eyes now are on next week's U.S. Federal Open Market
Committee's monetary policy meeting. Expectations that the Fed
will announce plans to taper its bond-buying program were lower
after Tuesday's softer-than-expected U.S. inflation data,
especially as some expect inflation to remain high for months.

Possible increases to the U.S. corporate tax rate remain
important in the background, and one bank estimated that raising
the corporate tax to 25% could shave 5% off S&P500 earnings in
2022.

"We still have a very fragile market, especially if we get
some type of tapering from the Federal Reserve," said David
Wagner, portfolio manager at Aptus Capital Advisors. "Any
material change to tax policy can create a more volatile
market."

Data out of China showed that factory and retail output and
sales growth hit one-year lows in August, as fresh COVID-19
outbreaks and supply disruptions pointed to a possible economic
slowdown in the mainland.

The dollar was last down 0.122% mainly due to a sharp
slide USD/JPY's, which broke below important supports as
safe-haven buying bolstered the yen in particular.

The yield on the U.S. government 10-year note was 1.3107%.

U.S. crude settled up 3.1% at $72.61 a barrel, and
Brent ended 2.5% higher at $75.46 a barrel.

Spot gold dropped 0.8% to $1,790.56 an ounce. U.S.
gold futures fell 0.68% to $1,792.40 an ounce.

(Reporting by Elizabeth Dilts Marshall in New York, Huw Jones
in London; Editing by Will Dunham and Marguerita Choy)

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