August 22, 2017 / 3:55 PM / a month ago

GLOBAL MARKETS-Miners, tech lift stocks, crude rebounds on supply

(Updates prices, adds comment)

* Dollar rebounds as euro falls before Jackson Hole meeting

* Oil prices rebound ahead of U.S. inventory data

* Wall Street rises, led by tech, material stocks

By Herbert Lash

NEW YORK, Aug 22 (Reuters) - Global equity markets rose on Tuesday, lifted by mining companies in Europe and technology shares on Wall Street, while crude oil rebounded on indications supply is gradually tightening, especially in the United States.

U.S. Treasury and gold prices fell ahead of an annual meeting this week of central bankers in Jackson Hole, Wyoming, where Federal Reserve Chair Janet Yellen and European Central Bank President Mario Draghi are due to speak.

A broadly resurgent U.S. dollar prompted investors to square positions in a thin market before the central bank conference begins on Thursday.

With investors caught between a generally benign economic backdrop that prevents too much of a sell-off but lacks a catalyst for new highs, “we do seem to be settling into more of a range-bound market,” said Larry Hatheway, chief economist at asset manager GAM.

A gauge of global equity markets, MSCI’s all-country world stock index <.MIWD00000PUS) rose 0.52 percent, while its emerging markets index gained 0.82 percent.

Stocks on Wall Street rallied, lifted by 1-percent gains in information technology shares and materials.

The Dow Jones Industrial Average rose 125.05 points, or 0.58 percent, to 21,828.8. The S&P 500 gained 15.62 points, or 0.64 percent, to 2,443.99 and the Nasdaq Composite added 63.84 points, or 1.03 percent, to 6,276.96.

In London, the blue-chip FTSE 100 equity index rose 0.89 percent, lifted by a rally in base metals that pushed copper to a three-year high and nickel to its strongest in eight months on the London Metal Exchange.

Copper rose to $6,642.50 a tonne, the highest since November 2014, before paring gains to $6,592.50, while three-month nickel was bid up 1.4 percent at $11,475 a tonne.

“There’s nothing really fundamental to drive things onwards from here, so I think it’s a bit of misplaced euphoria and trend-following buyers jumping on the bandwagon,” said Robin Bhar, head of metals research at Societe Generale in London.

The FTSEurofirst 300 index of leading European shares rose 0.85 percent.

Europe’s basic resources sector enjoyed a second session of gains and was the top-gaining sector, supported by a rally in iron ore prices.

Benchmark 10-year U.S. Treasury notes were last down 6/32 in price to yield 2.2009 percent.

In European debt markets, Italian government bond yields jumped, stretching the gap with German bunds to a five-week high, in the wake of proposals to introduce a parallel currency in Italy that have upped the ante for elections due next year.

Italy’s 10-year bond yield, which moves inversely to the price, climbed 8 basis points to a three-week high at 2.11 percent, its biggest daily rise in a month.

Oil prices rose. Benchmark Brent crude was up 52 cents at $52.18 a barrel, while U.S. light, sweet crude was 53 cents higher at $47.90 a barrel.

“U.S. crude oil stocks have been falling consistently in recent weeks,” said Fawad Razaqzada, market analyst at futures brokerage Forex.com.

The dollar rallied after falling for two straight days, benefiting from the euro’s decline following weaker-than-expected euro zone data as well as investors adjusting positions ahead of the central bankers’ conference in Jackson Hole.

The dollar index rose 0.36 percent against a trade-weighted basket of its currencies to 93.431.

The euro, meanwhile, slid 0.41 percent against the greenback to $1.1766, retracing most of its overnight gains when it posted its biggest single day rise so far this month.

Spot gold was down 0.25 percent at $1,287.66 an ounce.

Reporting by Herbert Lash; Editing by Nick Zieminski

Our Standards:The Thomson Reuters Trust Principles.
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