* All three major U.S. stock indexes in the black
* European, emerging equities markets rally
* Pound rises after PM Johnson's setback in parliament
* U.S. Treasury yield curve steepens as long-dated yields rise
* Hong Kong scraps extradition bill, boosting sentiment
By Stephen Culp
NEW YORK, Sept 4 (Reuters) - Stocks rebounded worldwide on Wednesday, and the U.S. Treasury yield curve steepened as easing geopolitical concerns and upbeat economic data from China helped revive investor risk appetite.
A parliamentary vote in Britain raised hopes that the nation's no-deal exit from the European Union could be postponed, Hong Kong withdrew the contentious extradition bill at the heart of recent protests and political risks in Italy appeared to be easing, all of which brought buyers back to equities markets. services sector expanded in August at its fastest pace in three months as a jump in new orders prompted the biggest hiring increase in over a year, according to the Caixin/Markit services purchasing managers index (PMI). are lifting everything much in the way it drowned everything yesterday," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago. "It's as if the slate gets wiped clean and we're starting from zero every day."
"The markets are very binary," Nolte added. "It's either 'happy days are here again' or 'things are terrible and we're falling into the abyss.'"
The U.S. trade deficit shrank in July, according to the Commerce Department, but bilateral gaps in goods trade with key trading partners widened. The closely watched deficit with China grew by 9.4% as the bruising Sino-U.S. trade war raged on and the deficit with the European Union hit a record high. Dow Jones Industrial Average .DJI rose 212.06 points, or 0.81%, to 26,330.08, the S&P 500 .SPX gained 27.56 points, or 0.95%, to 2,933.83 and the Nasdaq Composite .IXIC added 94.49 points, or 1.2%, to 7,968.64. political developments in Europe and Hong Kong helped fuel a rally in European stocks, sending them to one-month highs. pan-European STOXX 600 index .STOXX rose 0.89% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 1.10%.
Emerging market stocks rose 1.86%. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 1.82% higher, while Japan's Nikkei .N225 rose 0.12%.
The U.S. Treasury yield curve was at its steepest in two weeks as improving risk sentiment sent longer-dated yields edged higher. 10-year notes US10YT=RR last rose 3/32 in price to yield 1.4556%, from 1.466% late on Tuesday.
The 30-year bond US30YT=RR last fell 4/32 in price to yield 1.9552%, from 1.95% late on Tuesday.
Fresh doubts about the scale of the European Central Bank's stimulus caused the euro to rebound, while the dollar continued its retreat from a more than two-year high against a basket of major world currencies. The pound sterling recovered as efforts to stop a no-deal Brexit advanced. dollar index .DXY fell 0.51%, with the euro EUR= up 0.46% to $1.1023.
The Japanese yen weakened 0.33% versus the greenback at 106.30 per dollar, while sterling GBP= was last trading at $1.2205, up 1.00% on the day.
Oil prices rose with the tide, with WTI crude on track for its biggest daily percentage increase since June 10, boosted by easing geopolitical tensions and the positive news about China's services sector. crude CLcv1 rose 4.54% to $56.39 per barrel and Brent LCOcv1 was last at $60.79, up 4.34% on the day.
Gold inched higher amid remaining economic concerns in the shadow of the U.S.-China trade, but the precious metal still hovered below its six-year peak. gold XAU= added 0.3% to $1,551.80 an ounce.
Copper CMCU3 rose 2.53% to $5,752.00 a tonne.
Three-month aluminum on the London Metal Exchange CMAL3 rose 1.06% to $1,771.50 a tonne.
http://tmsnrt.rs/2jvdmXl GRAPHIC-World FX rates in 2019
http://tmsnrt.rs/2egbfVh US STOCKS-Strong Chinese data, easing geopolitical worries push Wall St higher
Relief for European stocks as political tensions ease
TREASURIES-Curve steepens as risk appetite drives long-dated yields higher
Ebbing political risk lift German yields; Italy rally continues
Oil prices rise over 4% on positive economic data from China