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World stocks gain, US yields slip at start of jam-packed week



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Global shares, Wall St gain

Fed, BOE and BOJ all meet this week

Earnings include Microsoft, Amazon and Meta

Updated at 1:20 ET (1720 GMT

By Chris Prentice and Wayne Cole

NEW YORK/SYDNEY, July 29 (Reuters) - Global stocks were broadly higher and longer-dated U.S. yields slipped on Monday, at the start of a week jammed with earningsand a trio of central bank meetings that could see the United States and the UKopen the door to interest rate cuts.

U.S. jobs data for July, closely watched surveys on U.S. and global manufacturing, and euro zone gross domestic product and inflation data are all due later this week.

The markets were jittery ahead of Big Tech earnings and concern over the Federal Reserve's next moves. Big Tech stocks were up,but off the day's highs.

S&P 500 companies representing about 40% of index's market value will report this week, including tech darlings Microsoft MSFT.O, Apple AAPL.O, Amazon.com AMZN.O and Facebook-parent Meta Platforms META.O.

"The market is fearful that if the Big Tech names disappoint, it could drag on the entire market. The markets were up handily and then we saw them pull back," said Quincy Krosby, chief global strategist for LPL Financial in Charlotte, North Carolina.

The U.S. Treasury will outline its bond sale plans for the quarter, while China's politburo meeting could produce more stimulus following surprise rate cuts last week.

After a benign June inflation report, markets are wagering that the Federal Reserve will lay the groundwork for a September rate cut at the close of its two-day policymeeting on Wednesday.

Futures are fully priced for a quarter-point easing and even imply a 12% chance of 50 basis points in cuts, and have 68 basis points of easing priced in by December FEDWATCH.

"The FOMC is set to hold steady but is likely to revise its statement to hint that a cut at the following meeting in September has become more likely," wrote analysts at Goldman Sachs in a note.

"We now see the risks to the Fed path as tilted slightly to the downside of our baseline of quarterly rate cuts, though not quite as much as market pricing implies."

The Bank of Japan also meets on Wednesday,and markets imply a 70% chance it will hike rates by 10 basis points to 0.2%, with some chance it could move by 15 basis points 0#BOJWATCH.

Investors are less sure whether the Bank of England will ease at its meeting on Thursday, with futures showing a 51% probability of a cut 0#BOEWATCH.


EARNINGS TEST

MSCI's gauge of stocks across the globe .MIWD00000PUS rose 2.46 points, or 0.31%, to 805.94 by 1:20 p.m. ET (1720 GMT).

European shares eased as investors remained risk averse. The pan-European STOXX 600 index .STOXX closed 0.2% lower, with autos .SXAP the biggest decliner among major sectors.

The Nasdaq and the S&P 500 rose on Monday, buoyed by megacap stocks, and theDow Jones .DJI recovered from earlier losses.

The S&P 500 .SPX gained 19.87 points, or 0.36%, to 5,478.97, and the Nasdaq Composite .IXIC gained 93.90 points, or 0.54%, to 17,451.78. The Dow Jones Industrial Average .DJI rose 23.06 points, or 0.06%, to 40,612.40,

With expectations for earnings high,any hint of disappointment will test the mega-caps' sky-high valuations.

"With some sizeable moves implied by the options market for the individual names on the day of reporting, movement at a stock level could resonate across other plays within their sector and potentially promote volatility," said Chris Weston, head of research at broker Pepperstone.

"Company earnings don't come much bigger than Microsoft, where the options market implies a move (higher or lower) of 4.7% - the after-market session on Tuesday could get lively."

In currency markets, the dollar index =USD, which measures the greenback against a basket of currencies including the yen and the euro, gained 0.17% at 104.55.

The euroEUR= retreated 0.3% at $1.0824.

The Japanese yen held onto recent gains, leaving the dollar at 153.92JPY=EBS.

In Treasury markets, theyield on benchmark U.S. 10-year notes US10YT=RR fell 2.6 basis points to 4.174%, from 4.2% previously.The 30-year bond US30YT=RR yield fell 2.9 basis points to 4.4281% from 4.457% late on Friday.

In commodities markets, spot goldXAU= gave up earlier gains and was down 0.24% to $2,379.89 an ounce.GOL/

Oil prices fell in volatile trading. Israeli officials said they wanted to avoid an all-out warin the Middle East following a rocket strike in the Israeli-occupied Golan Heights, which Israel and the United States attributed to Lebanesearmed group Hezbollah. O/R

U.S. crude CLc1 lost 2.07% to $75.56 a barrel and Brent LCOc1 fell to $79.5 per barrel, down 2.01% on the day.


Asia stock markets https://tmsnrt.rs/2zpUAr4

Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA


Reporting by Chris Prentice in New York, Wayne Cole in Sydney and Amanda Cooper in London;
Editing by Shri Navaratnam, Sam Holmes, Kirsten Donovan, Christina Fincher

To read Reuters Markets and Finance news, click on https://www.reuters.com/finance/markets For the state of play of Asian stock markets please click on: 0#.INDEXA
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