* Sterling slides as UK PM plans to cut parliamentary time
* Oil prices rise as data show U.S. inventory drawdowns
* Treasury demand robust in auction of 5-year notes
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By April Joyner
NEW YORK, Aug 28 (Reuters) - A gauge of equities worldwide rose on Wednesday as data showing strong demand for oil helped subdue recession jitters, while sterling tumbled as Britain's prime minister moved to restrict parliamentary time before the country's planned departure from the European Union.
The MSCI All-Country World Index .MIWD00000PUS rose 0.24% as U.S. stocks advanced, though the pan-European STOXX 600 .STOXX ended 0.20% lower. As stocks recovered from early losses, safe-haven assets such as gold and the Japanese yen turned negative on the day, though still near recent highs. U.S. Treasury prices also eased. showing a fall in U.S. crude stockpiles lifted oil prices. The sign of healthy demand quelled to some extent the fears of a severe economic downturn prompted by the inversion of the U.S. Treasury yield curve, which has historically been a highly accurate predictor of a U.S. recession. have de-stocking occur that quickly is viewed as a positive sign for the economy," said Michael O'Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut, referring to the data on oil inventories. "It's a good enough reason for stocks to bounce today."
Following the data, U.S. crude CLcv1 rose 1.38% to $55.69 per barrel and Brent LCOcv1 was last at $60.40, up 1.5%.
The British pound GBP= dropped sharply after Prime Minister Boris Johnson set Oct. 14 as the date for the formal state opening of a new session of parliament. The opening limits the time the parliament would sit before the planned date for Brexit on Oct. 31. The news stoked fears of an economically disruptive no-deal departure from the EU. was last down 0.50% against the dollar at $1.2226.
On Wall Street, the Dow Jones Industrial Average .DJI rose 210.36 points, or 0.82%, to 25,988.26, the S&P 500 .SPX gained 15.2 points, or 0.53%, to 2,884.36 and the Nasdaq Composite .IXIC added 18.78 points, or 0.24%, to 7,845.73.
Despite the bounce in equities, demand for Treasuries remained robust during a $41 billion auction of five-year government debt on Wednesday. Yields on 30-year U.S. Treasuries US30YT=RR touched all-time lows earlier in the session and were below those of 3-month bills US3MT=RR . The yield curve between 2-year and 10-year notes US2US10=TWEB remained inverted. 10-year Treasury notes US10YT=RR last rose 9/32 in price to yield 1.4593%, from 1.49% late on Tuesday.
"It's become very difficult for investors to garner an idea of where we go to next," said Michael Hewson, chief market strategist at CMC Markets. "The weakness in bond yields and the strength in havens speaks to an investor that is becoming increasingly risk-averse."
In currencies, the dollar index .DXY rose 0.17%. The Japanese yen weakened 0.23% versus the greenback at 106.00 per dollar. commodities, spot gold XAU= dropped 0.03% to $1,542 an ounce, though not far off its six-year peak touched on Monday. silver XAG= added 1.16% to $18.37 an ounce after having hit $18.50, its highest level since April 2017.
http://tmsnrt.rs/2zUqXiW World FX rates in 2019
http://tmsnrt.rs/2egbfVh GBP moves
https://tmsnrt.rs/2PlDRiw EXPLAINER-Countdown to recession: What an inverted yield curve means