(Updates with afternoon trading)
* Trump official downplays concerns about a global trade war
* U.S. stocks mixed in afternoon trading
* U.S., Euro bond yields lower
By Nick Brown
NEW YORK, March 15 (Reuters) - U.S. stock indexes wavered between gains and losses on Thursday as short-term concerns eased over a global trade war, but fears of longer-term instability kept demand high for safe-haven government bonds on both sides of the Atlantic.
U.S. industrial stocks climbed after a White House trade adviser sought to downplay the chances of a trade war in the wake of recent protectionist policies from U.S. President Donald Trump's administration.
Trump's tough approach to global trade, including new tariffs on metals imports, will not necessarily provoke retaliation from trading partners, Peter Navarro, the top adviser on international economic exchanges, said on CNBC. CAT.N was up more than 1 percent, while GE GE.N and 3M MMM.N had made similar gains earlier before losing some ground.
The Dow Jones Industrial Average .DJI rose 80.06 points, or 0.32 percent, to 24,838.18, the S&P 500 .SPX lost 5.64 points, or 0.21 percent, to 2,743.84 and the Nasdaq Composite .IXIC dropped 28.67 points, or 0.38 percent, to 7,468.14. Street is trying to avoid its first four-day losing streak of 2018. Equities, especially shares of manufacturers, have been under pressure from Trump's tariff plans, including a move to impose duties of up to $60 billion on Chinese imports while pushing for $100 billion cut in its trade surplus. Europe, a strong showing by insurance companies like Munich Re MUVGn.DE and Generali GASI.MI , both up more than 2.5 percent, offset political concerns over creeping far-right influence in Italy and growing tensions between Russia and the U.K. pan-European FTSEurofirst 300 index .FTEU3 rose 0.53 percent, while MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.21 percent.
The U.S. dollar, meanwhile, gained against a basket of six other currencies. The dollar index .DXY rose 0.48 percent, with the euro EUR= down 0.52 percent to $1.2301.
Fears over political uncertainty did not disappear altogether.
The dollar remained down against the Japanese yen, which is often a sign that investors are uncertain about the U.S. political and economic climates.
Bond yields, too, reflected an increased appetite for government bonds viewed as less risky.
Many yields in the euro zone fell to their lowest level since late January, pushed down by both political uncertainty and expectations for a slow exit from the European Central Bank's stimulus.
Germany's 10-year bond yield fell to 0.57 percent, its lowest level in seven weeks. French and Dutch 10-year bond yields also fell to their lowest levels since January. U.S. Treasury yield curve continued to flatten amid concerns about a trade war. And yields also fell Thursday afternoon on a New York Times report that Robert Mueller, the special prosecutor investigating meddling by Russia in the 2016 U.S. Presidential Election, subpoenaed documents from the Trump Organization. 10-year notes US10YT=RR last fell 2/32 in price to yield 2.8243 percent, from 2.817 percent late on Wednesday.
The 30-year bond US30YT=RR last fell 2/32 in price to yield 3.0608 percent, from 3.058 percent Thursday.
Oil prices edged higher in choppy trade. U.S. crude CLcv1 rose 0.36 percent to $61.18 per barrel and Brent LCOcv1 was last at $65.08, up 0.29 percent on the day. Italy's League leader opens door to government deal with 5-Star
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GRAPHIC-Global assets in 2018
http://tmsnrt.rs/2jvdmXl GRAPHIC-Emerging markets in 2018
http://tmsnrt.rs/2ihRugV GRAPHIC-World FX rates in 2018
http://tmsnrt.rs/2egbfVh GRAPHIC-MSCI All Country World Index Market Cap
http://tmsnrt.rs/2EmTD6j
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