(Updates to U.S. market close)
* Europe, U.S. boost global stocks; Asia weighs on EMequities
* Japan stocks fall overnight but Nikkei futures jump
* U.S. crude rises the most in nearly three weeks
By Rodrigo Campos
NEW YORK, March 5 (Reuters) - Oil prices rallied on Mondayand stocks across the globe also rose as investors saw tariffthreats as a U.S. negotiating tactic and not a done deal, whileconcern ebbed over an inconclusive Italian election.
Stocks rose after four days of declines, with the U.S.benchmark S&P 500 higher and Europe closing near session highsas pressure grew on U.S. President Donald Trump to back off fromplanned tariffs on steel and aluminum. have at least a bit of a rethink regarding the prospectsof trade war," said Art Hogan, chief market strategist at B.Riley FBR in New York, of the midday swing to higher stockprices. He said the Trump administration "sees the stock marketas a report card for success and markets have so far said thistrade war is not a good idea."
Trump's hard talk regarding steel and aluminum tariffs"sounds like we're shifting back to posturing to get a betterNAFTA deal," Hogan added.
Trump said on Monday that Canada and Mexico could avoidbeing caught in his planned hefty tariffs on steel and aluminumimports if they ceded ground to Washington in trilateral talkson a new North American trade deal. Dow Jones Industrial Average .DJI rose 336.7 points,or 1.37 percent, to 24,874.76, the S&P 500 .SPX gained 29.69points, or 1.10 percent, to 2,720.94 and the Nasdaq Composite .IXIC added 72.84 points, or 1 percent, to 7,330.71.
The pan-European FTSEurofirst 300 index .FTEU3 rose 1.04percent and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.64 percent. market stocks lost 0.34 percent, weighed lowerovernight by Asia. MSCI's broadest index of Asia-Pacific sharesoutside Japan .MIAPJ0000PUS closed 0.99 percent lower. Japan'sNikkei .N225 lost 0.66 percent, but U.S.-traded Nikkei futures NKc1 rose more than 1 percent.
The euro, which earlier fell as much as 0.4 percent versusthe U.S. dollar EUR= , edged higher against most major peers,including the greenback. common currency was whiplashed by weekend elections, asGermany's Social Democrats voted to re-enter a grand coalitionwith Chancellor Angela Merkel's conservatives, while resultsfrom Italy pointed to a messier outcome than expected - a strongshowing for anti-establishment parties and no group able to forma stable government. together, the election outcomes did not alterinvestors' view on the strength of the euro zone economy,although the Italian results put political risks in the regionback on the radar.
"All in all, they are neutral to slightly positive for theeuro," said Nick Bennenbroek, head of currency strategy at WellsFargo Securities in New York.
The dollar index .DXY rose 0.09 percent, with the euro EUR= up 0.14 percent to $1.2334.
The Japanese yen weakened 0.40 percent versus the greenbackat 106.16 per dollar, while Sterling GBP= was last trading at$1.3843, up 0.30 percent on the day.
The Mexican peso gained 0.02 percent versus the U.S. dollarat 18.79 and the Canadian dollar was down 0.85 percent againstthe greenback at 1.30 per dollar.
Crude prices rose on forecasts for robust oil demand growthand concerns OPEC will not be able to increase its productioncapacity. crude CLcv1 rose 2.19 percent to $62.59 per barreland Brent LCOcv1 was last at $65.54, up 1.82 percent on theday.
Treasury yields turned higher as stocks surged pointing tomore risk tolerance in markets. bottom line is trade wars are not good… A trade war onsteel and aluminum is going to help a small number of people andit's going to hurt a lot more and drive up prices," said MaryAnn Hurley, vice president, fixed income trading at D.A.Davidson in Seattle.
Prices were also pressured by this week's heavy supply ledby an expected CVS deal for more than $40 billion to finance itspurchase of Aetna. are thoughts there is going to be rate-lock selling.The supply on the corporate end is a factor that's reallyhurting Treasuries," Hurley said.
Benchmark 10-year notes US10YT=RR last fell 6/32 in priceto yield 2.8789 percent, from 2.857 percent late on Friday.
The 30-year bond US30YT=RR last fell 12/32 in price toyield 3.1514 percent, from 3.132 percent late on Friday.
Spot gold XAU= dropped 0.1 percent to $1,320.37 an ounce.U.S. gold futures GCcv1 fell 0.17 percent to $1,321.20 anounce.
Copper CMCU3 rose 0.39 percent to $6,925.00 a tonne.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^GRAPHIC: Global assets in 2018
http://tmsnrt.rs/2jvdmXlGRAPHIC: Global currencies vs. dollar
http://tmsnrt.rs/2egbfVhGRAPHIC: Emerging markets in 2018
http://tmsnrt.rs/2ihRugVGRAPHIC: MSCI All Country Worldd Index Market Cap
http://tmsnrt.rs/2EmTD6j
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