(Updates to open of U.S. markets, changes byline, dateline; previous LONDON)
* Nasdaq rallies after confirming correction
* Oil prices retreat
* U.S. Treasury yields fall
By Chuck Mikolajczak
NEW YORK, March 9 (Reuters) - A gauge of global stocks was on track for its biggest one-day percentage climb in a week on Tuesday as a fall in U.S. Treasury yields eased concerns the economic recovery could overheat and lead to stronger-than-expected inflation.
U.S. Treasury yields fell with eyes on the $120 billion auctions of 3-, 10-, and 30-year Treasuries this week, as a weak 7-year note sale that prompted a spike in yields two weeks ago was followed by another soft auction last week. 10-year notes US10YT=RR last rose 10/32 in price to yield 1.5594%, from 1.594% late on Monday. The note has topped 1.6% three times since Feb. 25, reaching levels not seen in over a year.
On Wall Street, each of the major averages were higher, led by a gain of more than 3% in the Nasdaq, putting the tech-heavy index on track for its biggest one-day percentage rise in just over four months. The index has been highly susceptible to climbing rates, and Monday's retreat left it down more than 10% from its Feb. 12 close, confirming what is widely considered to be a correction. the tail wagging the dog; it is interesting the focus has really shifted to the impact of extremely aggressive fiscal spending on the likelihood of inflationary pressures becoming once more a mainstay of the investing landscape," said Peter Kenny, founder of Kenny's Commentary LLC and Strategic Board Solutions LLC in Denver.
"This is an expected, highly predictable, and, I dare say, welcome response, and it is all about velocity."
The Dow Jones Industrial Average .DJI rose 263.57 points, or 0.83%, to 32,066.01, the S&P 500 .SPX gained 66.58 points, or 1.74%, to 3,887.93 and the Nasdaq Composite .IXIC added 394.01 points, or 3.12%, to 13,003.18.
In Europe, a fall in yields helped stocks shrug off data showing a bigger than expected fall in fourth-quarter euro zone economic output, although gains were less pronounced than in the United States after European equities jumped more than 2% on Tuesday. will also closely watch a European Central Bank meeting later this week to see if policymakers have decided to step up the pace of emergency bond purchases to appease skittish markets.
Data on Tuesday showed the ECB barely nudged up its emergency bond purchases last week even before subtracting debt that matured over that period, raising fresh questions about the central banks' resolve to curb a bond market sell-off. pan-European STOXX 600 index .STOXX rose 0.72% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 1.48%.
The speedier rollout of COVID-19 vaccines in some countries and the United States' planned $1.9 trillion stimulus package helped underpin a brighter global economic outlook, the Organisation for Economic Cooperation and Development (OECD) said, as it raised its 2021 growth forecast to 5.6%. 10-year government bond yield DE10YT=RR DE10YT=RR last rose 6/32 in price to yield -0.298%, from -0.278% on Monday, moving further away from the near one-year high of -0.203% in late February. foreign exchange markets, the dollar index =USD backed away from a 3-1/2-month high, allowing riskier currencies such as the Aussie and the Kiwi dollar to move higher.
The dollar index =USD fell 0.312%, with the euro EUR= up 0.34% to $1.1883.
Oil prices backed off earlier highs in choppy trading, with Brent dipping back to the $68 mark as investors weighed easing concerns over a supply disruption in Saudi Arabia with the likelihood of limited supply from OPEC+ output limits. crude CLc1 recently fell 0.57% to $64.68 per barrel and Brent LCOc1 was at $68.12, down 0.18% on the day.
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http://tmsnrt.rs/2yaDPgn World FX rates in 2021
http://tmsnrt.rs/2egbfVh Emerging markets
http://tmsnrt.rs/2ihRugV MSCI All Country World Index Market Cap
http://tmsnrt.rs/2EmTD6j
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