* Fed likely to resist pressure to cut U.S. rates this week
* ECB forum, Bank of Japan also in focus
* Wall Street indexes gain led by Nasdaq
* Dollar index pulls back from June highs (Updates with afternoon U.S. trading)
By Lewis Krauskopf
NEW YORK, June 17 (Reuters) - A gauge of global stock markets edged higher on Monday to build on monthly gains and benchmark government bond yields hovered near multi-year lows as investors girded for developments later in the week from central banks in the United States and elsewhere.
The dollar slipped against a basket of currencies .DXY after touching its highest point since the start of June.
MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.05%, as increases for Wall Street's main indexes led by the tech-heavy Nasdaq countered some weakness in Europe.
The U.S. Federal Reserve is set to give its policy statement on Wednesday with expectations running high the central bank is poised to cut interest rates this year. European Central Bank is also holding a forum in Portugal this week, with the Bank of Japan also set to hold its policy meeting later in the week. so much coming later this week as far as central bank announcements, I think investors are basically in a holding pattern," said Chris Gaffney, president of world markets at TIAA Bank.
The Fed is expected to leave borrowing costs unchanged at a policy meeting this week but possibly lay the groundwork for a rate cut later this year, with concerns about the global economy fueled by a heightening U.S.-China trade war.
“I think expectations have been set of a rate cut have been overdone so it will be interesting to see just how dovish the tone is,” Gaffney said.
The New York Federal Reserve said its gauge of business growth in New York state posted a record fall this month to its weakest level in more than 2-1/2 years, suggesting an abrupt contraction in regional activity. Wall Street, the Dow Jones Industrial Average .DJI rose 55.99 points, or 0.21%, to 26,145.6, the S&P 500 .SPX gained 6.95 points, or 0.24%, to 2,893.93 and the Nasdaq Composite .IXIC added 62.31 points, or 0.8%, to 7,858.97. pan-European STOXX 600 index .STOXX lost 0.09%. Shares of Lufthansa LHAG.DE plunged 12% after the German airline lowered its profit outlook for the full year 2019 citing intense competition from low-cost rivals. Treasury yields slipped in choppy trading, weighed down by softer-than-expected U.S. economic data and persistent pressure arising from the trade conflict with China. 10-year notes US10YT=RR last rose 2/32 in price to yield 2.0872%, from 2.094% late on Friday.
Germany's 10-year bund yield DE10YT=RR , the benchmark for Europe, was around -0.24%. dollar index .DXY fell 0.09%, with the euro EUR= up 0.16% to $1.1225. prices declined further after more poor Chinese economic figures fanned fears of slowed worldwide oil demand. crude CLcv1 fell 0.5% to $52.25 per barrel and Brent LCOcv1 was last at $61.44, down 0.92% on the day.
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https://tmsnrt.rs/2KdE2by GRAPHIC-Global assets in 2019
http://tmsnrt.rs/2jvdmXl GRAPHIC-World FX rates in 2019
http://tmsnrt.rs/2egbfVh GRAPHIC-MSCI All Country World Index Market Cap
http://tmsnrt.rs/2EmTD6j GRAPHIC-China trade shock interactive
https://tmsnrt.rs/2SRopIf Asia stock markets
https://tmsnrt.rs/2zpUAr4 Asia-Pacific valuations
https://tmsnrt.rs/2Dr2BQA
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