* Shares claw higher, dollar steady while yield curve steepens
* U.S. data adds to outlook for Fed rate cut
By Sinéad Carew
NEW YORK, June 13 (Reuters) - Oil futures rose on Thursday after attacks on two tankers off the coast of Iran, while the U.S. Treasury yield curve steepened and stocks rose following economic data that was seen as strengthening the case for the Federal Reserve to cut interest rates this year.
Wall Street's major stock indexes climbed after falling for two days as investors regained their appetite for risk assets.
The number of Americans applying for unemployment benefits unexpectedly rose last week, potentially adding to concerns about the U.S. labor market after May job growth slowed. Other data showed import prices fell by the most in five months in May in the latest indication of muted inflation pressures, adding to expectations the Fed will cut rates this year. are a lot of cross currents but in general a grind higher," said Joseph Quinlan, head of chief investment office market strategy for Merrill and Bank of America (NYSE:BAC) Private Bank in New York, citing everything from the Fed rate cut expectations to a lack of new headlines on the U.S.-China trade war.
"On days when there's no new news from the U.S. and China that's a positive," he said. "The Middle East problems haven't caused a flight to safety. That's a positive sign."
The S&P pared gains slightly but was still positive after U.S. Secretary of State Mike Pompeo said, without offering concrete evidence, the United States believes Iran is responsible for tanker attacks in the Gulf of Oman. Dow Jones Industrial Average .DJI rose 68.59 points, or 0.26%, to 26,073.42, the S&P 500 .SPX gained 8.17 points, or 0.28%, to 2,888.01, and the Nasdaq Composite .IXIC added 34.43 points, or 0.44%, to 7,827.14.
The pan-European STOXX 600 index .STOXX rose 0.16% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.01%.
After falling hard on Wednesday, oil futures rebounded sharply on the news of the tanker attacks in the Gulf of Oman near Iran and the Strait of Hormuz, a key passage for seaborne oil cargoes. crude CLcv1 rose 2.11% to $52.22 per barrel, recouping some of the previous day's 4% drop. Brent LCOcv1 was up 2.7% at $61.57.
YIELD CURVE STEEPENS
Increased expectations of Fed rate cuts pulled short-dated U.S. Treasury yields lower on Thursday, steepening the yield curve ahead of Friday's retail sales data and the Fed's meeting next week. 10-year notes US10YT=RR last rose 11/32 in price to yield 2.091%, from 2.127% late on Wednesday.
In currencies, the U.S. dollar was little changed against the euro as investors were slow to take large positions before the Fed meeting and the G20 summit later in June when U.S. and China leaders are expected to discuss trade. dollar index .DXY , which tracks the greenback against six major currencies, rose 0.01%, with the euro EUR= down 0.09% to $1.1277.
The Japanese yen strengthened 0.16% versus the greenback, to 108.34 per dollar, while sterling GBP= was last trading at $1.2681, down 0.04% on the day.
Gold prices edged higher on expectations for a U.S. rate cut after the soft inflation data, although the uptick in equities capped gains. gold XAU= added 0.6% to $1,340.78 an ounce.
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https://tmsnrt.rs/2XgZ7Jj Position of evacuated tankers in Gulf of Oman
https://tmsnrt.rs/2X6nIQF
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