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GLOBAL MARKETS-Stocks gain on economic data as dollar trades little changed

Tue, 15th Sep 2020 17:07

* China's yuan surges to 16-month high on economic data

* Gold slips as dollar rebounds, all eyes on Fed

* Oil rises but bleaker demand outlook weighs

* Central bank meetings dominate week's agenda

* Graphic: 2020 asset performance

* Graphic: World FX rates in 2020


By Herbert Lash

NEW YORK, Sept 15 (Reuters) - World stock markets rose on
Tuesday, first on upbeat Chinese data and later on a solid
increase in U.S. factory output, while the dollar see-sawed on
expectations the Federal Reserve will keep a downbeat economic
outlook when policymakers meet this week.

Gold retreated and investors drove longer-term U.S. Treasury
yields higher, steepening the yield curve, as the Fed began a
two-day meeting.

The euro gained after the ZEW economic sentiment survey
showed investor sentiment in Germany rose in September, despite
headwinds from Brexit and rising coronavirus infections.

U.S. factory output increased strongly last month, while
U.S. import prices rose more than expected, supporting the view
that inflation pressures were building.

Data showed Chinese industrial output accelerated the most
in eight months in August, up 5.6%, to spark a jump in the yuan
to a 16-month high. Retail sales in China also grew for
the first time this year, beating forecasts.

"China is an economic winner at this point in the pandemic,"
said Kit Juckes, head of FX strategy at Societe Generale.

Commodity-linked currencies such as the Australian,
New Zealand, and Canadian dollars gained after
the positive Chinese data.

MSCI's all-country world index rose 0.75% to
576.99, while Europe's broad FTSEurofirst 300 index
added 0.71% to 1,439.08.

On Wall Street, the Dow Jones Industrial Average rose
0.41%, the S&P 500 gained 0.94% and the Nasdaq Composite
added 1.55%.

The S&P tech index jumped 1.6% as it recovered for
a second day from a plunge at the end of last week that had
knocked the Nasdaq into corrective territory, defined as a 10%
slide from a recent peak.

MSCI's emerging markets index rose 0.71%.

Euro zone bond yields were steady to a bit lower, shrugging
off the positive economic sentiment data from Germany and the
improvement in risk appetite that lifted global stock markets.

The dollar index rose 0.043%, with the euro
down 0.15% to $1.185.

The Japanese yen strengthened 0.24% versus the
greenback at 105.47 per dollar.


Overnight, MSCI's broadest index of Asia-Pacific shares
outside Japan added 0.5%, for a fourth straight
day of gains that have boosted it 3% for the year after its
recent reversal from its coronavirus plunge.

In commodity markets, most industrial metals were bolstered
by the robust Chinese data.

Oil prices rose, supported by hurricane supply disruptions
in the United States, but forecasts of a slower-than-expected
recovery in global demand from the pandemic weighed.

Brent crude futures rose $0.69, to $40.3 a barrel.
U.S. crude futures gained $0.77, to $38.03 a barrel.

Gold slipped from a near-two week high as the dollar rose,
although hopes for a dovish monetary policy stance from the U.S.
Federal Reserve limited the safe-haven metals' losses.

Spot gold prices fell 0.16% to $1,953.27 an ounce.

(Additional Reporting by Anshuman Daga in Singapore; Editing by
Ana Nicolaci da Costa and Dan Grebler)

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