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GLOBAL MARKETS-U.S. stocks set new highs as global rally falters

Published 14/09/2017, 06:50 am
© Reuters.  GLOBAL MARKETS-U.S. stocks set new highs as global rally falters
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(Adds close of U.S. markets)

* Dow, S&P 500, Nasdaq post record closing highs

* U.S. dollar extends gains, inflation data eyed

* Oil rises as IEA forecast overshadows U.S. crude build

By Herbert Lash

NEW YORK, Sept 13 (Reuters) - Global equity markets were little changed on Wednesday as Wall Street eked out new closing highs, while the dollar rose on U.S. producer prices data for August that suggested a robust economy.

The yields on European and U.S. government debt rose, with prices for the U.S. benchmark Treasury note hitting a 2-1/2-week high.

Oil prices gained after the International Energy Agency (IEA) said a global supply surplus was starting to shrink, even as U.S. data showed another surge in crude inventories due to Hurricane Harvey. three major Wall Street equity indexes posted record closes for the second consecutive session as gains in consumer discretionary and energy stocks offset losses in Apple, pulled lower over concerns about its new iPhone X.

MSCI's gauge of more than 2,400 stocks worldwide edged downward after consecutive record closes the past three sessions.

European equities pared earlier losses to edge higher thanks to gains in oil and banking stocks, which offset weak chipmakers and a fall in miners .SXPP . in Europe that supply Apple AAPL.O were among the worst performers, with AMS AMS.S down 3.9 percent and Dialog Semiconductor DLGS.DE off 1.6 percent. STMicro STM.MI edged up 0.1 percent.

Chipmakers have been the best-performing among Europe's tech stocks this year, accounting for a large chunk of the sector's outperformance. AMS shares have gained 165 percent in the year to date.

MSCI's all-country world stock index .MIWD00000PUS dipped 0.16 percent, but the pan-European FTSEurofirst 300 index .FTEU3 gained 0.2 percent and the Euro STOXX 50 .STOXX50E added 0.3 percent.

On Wall Street, the Dow Jones Industrial Average .DJI rose 39.32 points, or 0.18 percent, to 22,158.18. The S&P 500 .SPX gained 1.89 points, or 0.08 percent, to 2,498.37 and the Nasdaq Composite .IXIC added 5.91 points, or 0.09 percent, to 6,460.19. launch of Apple's iPhone X will test whether inflation is going to be weak as investors gauge demand for a product whose price starts at $999, said Mike Bell, global markets strategist with JP Morgan Asset Management in London.

"If it's relatively healthy, I think it shows that there is still quite a lot of pricing power for U.S. companies and consumers have confidence," Bell said.

The dollar index .DXY , which tracks the currency against a basket of six major rivals, was up 0.60 percent at 92.431. index rose after the U.S. Labor Department said its producer price index for final demand increased 0.2 percent in August after slipping 0.1 percent in July. The rebound was driven by a surge in the cost of gasoline. euro EUR= fell 0.69 percent to $1.1883 while the Japanese yen weakened 0.36 percent versus the greenback at 110.56 per dollar.

U.S. benchmark 10-year Treasury notes US10YT=RR fell 7/32 in price to yield 2.1970 percent. Their German counterpart, 10-year Bunds DE10YT=RR , rose 3 basis points in price to yield 0.404 percent.

Oil prices jumped after the IEA report but then pared gains. U.S. crude CLcv1 rose $1.07 to settle at $49.30 per barrel and Brent LCOcv1 rose 89 cents to settle at $55.16 a barrel. O/R

"A sharp rebound in U.S. oil production compared with last week has limited gains in crude prices as concerns grow that oil output is recovering faster than refining capacity coming online," said Abhishek Kumar, senior energy analyst at Interfax Energy's Global Gas Analytics in London.

U.S. gold futures GCv1 for December delivery settled down 0.4 percent at $1,328.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ GRAPHIC-World FX rates in 2017

http://tmsnrt.rs/2egbfVh GRAPHIC-Global assets in 2017

http://fingfx.thomsonreuters.com/gfx/rngs/COMMODITIES-ASSETS/010031B62XZ/index.html#section/assets GRAPHIC-Global bonds dashboard

http://tmsnrt.rs/2fPTds0 GRAPHIC-Global market cap

http://reut.rs/2mcp7T1 GRAPHIC-Emerging markets in 2017

http://tmsnrt.rs/2ihRugV MSCI Indexes Price Performance YTD

http://reut.rs/2jiGv8R

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