(Updates prices, changes dateline, previous LONDON)
* Shanghai stocks fall again
* U.S. oil claws back some ground, Brent little changed
* BoJ takes no action, yen close to flat
By Rodrigo Campos
NEW YORK, Sept 15 (Reuters) - Stock markets edged up on Wall
Street and Europe on Tuesday, supported by growing U.S. retail
sales, though gains were capped by caution ahead of a possible
rate increase by the U.S. central bank later in the week, which
would be its first in nearly a decade.
The U.S. dollar index .DXY advanced the most in two weeks.
The Federal Reserve will end a two-day meeting on Thursday
with a decision on monetary policy.
Worries about slowing Chinese and global growth and the
prospect of higher U.S. borrowing costs have weighed on markets
for weeks, but some expect the Fed to raise interest rates as a
confirmation that the U.S. economy doesn't need supportive
measures from the central bank.
Recent data points to "enough downside risks to the outlook
for the Fed to justify waiting until October to hike," said
Brian Jacobsen, chief portfolio strategist at Wells Fargo (NYSE:WFC) Funds
Management in Menomonee Falls, Wisconsin.
"I expect the Fed will stay pat on rates on Thursday, but
signal that there will be a press conference after each meeting
going forward to put every meeting in play for a hike."
Such a move will shift focus to the October meeting of Fed
policymakers, with talk so far having been about the September
or December meetings as key for a possible change in policy.
The Dow Jones industrial average .DJI rose 151.89 points,
or 0.93 percent, to 16,522.85, the S&P 500 .SPX gained 16
points, or 0.82 percent, to 1,969.03 and the Nasdaq Composite
.IXIC added 38.99 points, or 0.81 percent, to 4,844.76.
The pan-European FTSEurofirst 300 .FTEU3 index was up 1.1
percent and MSCI's gauge of major equity markets globally
.MIWD00000PUS gained 0.55 percent.
Overnight, Shanghai stocks fell 3.55 percent .SSEC as
growth concerns in the world's second-largest economy linger.
RISK ON, FOR NOW
Trading in U.S. Treasuries was thin ahead of the Fed
meeting, but prices slipped after retail sales data and as risk
appetite rose.
The Commerce Department said U.S. consumer spending grew at
a fairly healthy pace over the past two months, but factory
production slipped in August, providing the Fed a mixed economic
picture before its policymakers meet this week. ID:nL1N11L0Q5
U.S. 30-year Treasury bonds US30YT=RR were last down
1-10/32 in price to yield 3.014 percent, from a yield of 2.946
percent late Monday. Benchmark 10-year Treasury notes
US10YT=RR were last down 14/32 in price to yield 2.229
percent, from a yield of 2.18 percent Monday.
The yen JPY= , traditionally investors' safe haven of
choice in times of turbulence, was little changed after rising
as much as 0.7 percent and falling 0.4 percent. The Bank of
Japan held policy steady at the end of a two-day meeting.
ID:nL4N11L18G
The euro gave up about 0.4 percent against the greenback at
$1.1276 EUR= .
U.S. crude futures prices CLc1 rose 1.2 percent to $44.52
a barrel while Brent LCOc1 was little changed at $46.31.
Copper CMCU3 gained 0.4 percent to $5,327.50 a tonne.
(Editing by Bernadette Baum)