* U.S.-China trade negotiations in focus
* Turkish lira plunges as London swap market revives
* Palladium falls sharply in pullback from record high
* Oil pares losses, shrugs off Trump call for output boost (Updates with U.S. afternoon trading)
By Lewis Krauskopf
NEW YORK, March 28 (Reuters) - Benchmark U.S. and European bond yields moved higher on Thursday after prolonged slides, while world share markets were mixed with an eye on U.S.-China trade talks and economic growth.
While the U.S. dollar was rising against a basket of key currencies, the Turkish lira TRY= plunged as liquidity returned to the London foreign-exchange market, prompting President Tayyip Erdogan to blame the currency's weakness on attacks by the West. severe move was seen in palladium XPD= , which plummeted 7.2 percent as concerns that an economic slowdown could dent demand and a weak technical picture pushed investors to book profits after a record run. have been on heightened alert for signs on the strength of the U.S. economy since Friday, when the 3-month U.S. Treasury yield exceeded the yield on the 10-year note, an inversion of the yield curve that is widely seen as an indicator of a recession.
Data on Thursday showed the U.S. economy slowed more than initially thought in the fourth quarter, keeping growth in 2018 below the Trump administration's 3 percent annual target. are seeing the same themes impacting capital markets over the last few days," said Kristina Hooper, chief global market strategist at Invesco. "We have this overarching concern about where global growth is headed. Every data point has some impact on that.”
Wall Street's main stock indexes swung between gains and losses.
In afternoon trade, the Dow Jones Industrial Average .DJI rose 53.12 points, or 0.21 percent, to 25,678.71, the S&P 500 .SPX gained 6.07 points, or 0.22 percent, to 2,811.44 and the Nasdaq Composite .IXIC added 20.08 points, or 0.26 percent, to 7,663.46.
U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin were to arrive in Beijing on Thursday for a new round of talks with Chinese officials aimed at ending a months-long trade war.
China has made proposals in talks with the United States on a range of issues that go further than it has previously, as the two sides work to overcome obstacles to end their protracted trade war, U.S. officials told Reuters. kind of news always has an impact on markets in this environment where there is hypersensitivity to the trade situation,” Hooper said.
The pan-European STOXX 600 index .STOXX lost 0.12 percent, erasing early gains, as signs of trade progress were overshadowed by worries over economic growth and Britain's chaotic effort to leave the European Union. gauge of stocks across the globe .MIWD00000PUS shed 0.03 percent, as many key Asian indexes ended lower.
Benchmark 10-year U.S. Treasury yields rose from 15-month lows as investors continued to adjust to a dovish pivot from global central banks. 10-year notes US10YT=RR last fell 2/32 in price to yield 2.3787 percent, from 2.372 percent late on Wednesday.
Germany's 10-year bond yield DE10YT=RR , the European benchmark, rose from 2-1/2-year lows but remained negative. dollar rose against rivals - which were weakened by dovish soundings from central banks - in spite of the cut to the U.S. economic growth estimate in the fourth quarter. dollar index .DXY rose 0.41 percent, with the euro EUR= down 0.13 percent to $1.1232.
Oil prices fell but recovered from the day's worst losses that came after U.S. President Donald Trump called for the Organization of the Petroleum Exporting Countries to boost crude output to lower prices. crude CLcv1 fell 0.19 percent to $59.30 per barrel and Brent LCOcv1 was last at $67.82, down 0.01 percent on the day.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Asia stock markets
https://tmsnrt.rs/2zpUAr4 Asia-Pacific valuations
https://tmsnrt.rs/2Dr2BQA Germany's 10-year Bund yield
https://tmsnrt.rs/2HHGnuP Turkey's FX reserves fall as lira pressure mounts
https://tmsnrt.rs/2OqMwfq
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Editing by Mark Heinrich and Dan Grebler)