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GLOBAL MARKETS-Euro surges after ECB meeting, world stocks keep climbing

Published 2017-07-20, 01:14 p/m
GLOBAL MARKETS-Euro surges after ECB meeting, world stocks keep climbing
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* Euro hits near 2-year high against dollar

* Global stock gauge on track for 10th day of gains

* Wall Street treads water near records, Europe stocks dip

* Brent oil down after topping $50 for 1st time since June

By Lewis Krauskopf

NEW YORK, July 20 (Reuters) - The euro surged to approach a two-year high against the U.S. dollar on Thursday after Europe's central bank chief said officials would discuss possible changes to its bond-buying scheme this autumn, while world equity markets headed for a 10th day of gains.

Though European Central Bank President Mario Draghi set no date for changes to the bond-buying plan and that officials were unanimous in their decision not to change their guidance on monetary policy, investors suspected the talks would lead to tightening next year. euro EUR= was up 0.96 percent to $1.1624, and poised for its biggest single-day percentage gain in more than three weeks. marketplace is looking for a good potential for (ECB quantitative easing) reduction to start in September or at least to be announced in September," said Richard Scalone, co-head of foreign exchange at TJM Brokerage in Chicago.

In equities, the pan-European FTSEurofirst 300 index .FTEU3 lost 0.31 percent, while Wall Street's main stock indexes treaded water around record high levels.

Still, MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.25 percent, putting it on track for its longest streak of gains since February 2015, as a cautious-sounding Bank of Japan sent Asian markets to their highest in almost a decade overnight. Wall Street, the Dow Jones Industrial Average .DJI fell 20.59 points, or 0.1 percent, to 21,620.16, the S&P 500 .SPX gained 1.59 points, or 0.06 percent, to 2,475.42 and the Nasdaq Composite .IXIC added 3.55 points, or 0.06 percent, to 6,388.59.

With second-quarter reporting season in full swing, Qualcomm QCOM.O shares fell 5.1 percent after the chipmaker's forecast missed estimates. number of Americans filing for unemployment benefits fell more than expected last week, touching its lowest level in nearly five months, suggesting strong job gains that should continue to underpin economic growth. suffering against the euro, the dollar also weakened overall against a basket of major currencies. The dollar index .DXY fell 0.53 percent, touching an 11-month low.

U.S. Treasury yields declined, with benchmark yields hitting three-week lows as the ECB maintained its pledge of easy money with inflation stuck below its 2-percent target despite improved growth in the region. 10-year notes US10YT=RR last rose 4/32 in price to yield 2.2536 percent, from 2.268 percent late on Wednesday.

"Inflation is the main concern right now. Until something changes, it will rule the world," said Thomas Roth, head of U.S. Treasury trading at MUFG Securities America in New York.

Oil prices dipped in choppy U.S. trading, as nagging worries about abundant global crude supplies dragged prices lower. An early rally had pushed Brent above $50 per barrel for the first time since early June. crude CLcv1 fell 0.4 percent to $46.93 per barrel and Brent LCOcv1 was last at $49.47, down 0.46 percent on the day.

Spot gold XAU= added 0.4 percent to $1,245.51 an ounce.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Central bank balance sheets

http://tmsnrt.rs/2uI8Qah Global assets in 2017

http://reut.rs/1WAiOSC Emerging markets in 2017

http://tmsnrt.rs/2ihRugV Global bonds dashboard

http://tmsnrt.rs/2fPTds0 World FX rates in 2017

http://tmsnrt.rs/2egbfVh

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