* U.S. stocks higher in early trading
* Dollar rises
* Oil extends losses
(Updates with U.S. market openings, changes dateline, previous
LONDON)
By Caroline Valetkevitch
NEW YORK, Sept 2 (Reuters) - Global stock indexes recovered
some of their recent losses on Wednesday, drawing support from
reports of brokerage measures in China to invigorate the
country's battered markets, while U.S. oil extended losses from
the day before.
The S&P 500 was up 0.7 percent in early trading, also
boosted also by upbeat data on U.S. productivity.
European equities also were higher, building on early relief
after Chinese stocks managed to bounce from steep losses before
closing slightly lower. ID:nZZN2RJE00
Nine Chinese brokerages pledged to buy more than 30 billion
yuan of shares, according to the China Securities Journal. That
eased investor fears that Beijing may be intensifying a trading
crackdown. The news stabilized global markets and soothed
concerns that slowing growth in China will hurt the global
economy. ID:nL4N11803T
The Dow Jones industrial average .DJI rose 99.41 points,
or 0.62 percent, to 16,157.76, the S&P 500 .SPX gained 8.22
points, or 0.43 percent, to 1,922.07 and the Nasdaq Composite
.IXIC added 30.16 points, or 0.65 percent, to 4,666.26.
European stocks .FTUE3 were up 0.2 percent.
U.S. data showed nonfarm productivity increased at its
strongest pace in 1-1/2 years in the second quarter, keeping
wage inflation subdued for now.
Oil prices retreated. Data from the American Petroleum
Institute on Tuesday showed U.S. crude stocks surged last week.
The move followed a big drop in Brent and U.S. crude prices
on Tuesday, which ended a 25 percent three-session surge, the
largest such gain since 1990.
"A rise of around 25 percent in three consecutive days was
not going to be sustained," BNP Paribas (PARIS:BNPP) oil analyst Harry
Tchilinguirian said. "The underlying fundamentals are bearish."
Brent crude LCOc1 for October was down 78 cents at $48.80
a barrel. U.S. crude CLc1 for October was down $1.34 at
$44.07.
The dollar rose as global stock markets steadied, and as
U.S. hiring data encouraged speculation that Federal Reserve
policymakers will raise interest rates later this month.
The dollar index .DXY , a measure of six major currencies
valued against the greenback, was last up 0.40 percent and had
added to gains when payrolls processor ADP reported that U.S.
private payrolls increased by 190,000 last month.
U.S. Treasuries prices slipped after the fresh efforts in
China to steady financial markets mitigated concerns about the
world's second-biggest economy and reduced demand for safe-haven
U.S. government debt.
Benchmark 10-year Treasuries US10YT=RR were last down 3/32
in price to yield 2.18 percent, from a yield of 2.17 percent
late on Tuesday. U.S. 30-year Treasuries US30YT=RR were last
down 11/32 to yield 2.95 percent, from a yield of 2.93 percent
late on Tuesday.