* S&P 500 pares gains after hitting record
* Euro firms against dollar
* European shares rise on ECB stimulus hopes
(Adds close of European markets, drop in Apple shares)
By Sam Forgione
NEW YORK, Sept 3 Equity markets worldwide rose
on Wednesday, with the S&P 500 hitting a record high on hopes a
resolution would be reached between Ukraine and Russia, while
the euro rebounded from a one-year low against the dollar on
expectations for more European Central Bank stimulus.
The S&P 500 index pared its gains in afternoon trading on
some doubts over a resolution over Ukraine and a drop in Apple
shares, which also dragged down the tech-heavy Nasdaq
index. Speculation of a possible cease-fire in eastern Ukraine
still limited bets on safe-haven U.S. Treasuries. Oil prices
The euro rose as high as $1.31600 after hitting a
one-year low of $1.3110 on Tuesday. The dollar weakened against
the Russian rouble, while the dollar-denominated RTS
stock index gained 5.2 percent on the day.
Russian President Vladimir Putin said on Wednesday a deal to
end fighting in eastern Ukraine could be reached this week in
Kiev's conflict with pro-Russian rebels, but the Kremlin denied
any actual truce deal.
The situation is still fraught, with Ukraine's prime
minister saying Wednesday that Putin's proposals were an attempt
to deceive the West ahead of a NATO summit this week. Analysts
said many details about a peace plan need to be clarified.
"I think that for now (market) players will sit and wait. Of
course if the conflict finally ceases, the (stock) indexes could
rise another 10 percent," said Andrei Bachurin, chief trader at
European shares rose ahead of the ECB's policy meeting on
Thursday on speculation the central bank might launch an
asset-purchase program to boost inflation in the euro zone.
MSCI's all-country world index of 45
countries was last up 1.93 points or 0.45 percent, at 433.1,
while the pan-European FTSEurofirst 300 index closed up
0.69 percent, at 1,385.49.
"The ECB still has plenty of ammunition left," said Romain
Boscher, global head of equities management at Amundi, which
oversees $1.08 trillion. "The prospect of further action from
the central bank remains very supportive for risky assets such
The Dow Jones industrial average was last up 34.23
points, or 0.2 percent, to 17,101.79, the S&P 500 rose up
0.52 points, or 0.03 percent, to 2,002.8 and the Nasdaq
Composite fell 18.07 points, or 0.39 percent, to
Apple shares were last down 3.3 percent at $99.92 as it
grappled with a possible security breach into its iCloud service
a week before a crucial launch of its new iPhone.
Brent crude for October delivery was last up $1.92,
or up 1.91 percent, at $102.26 a barrel. U.S. crude was
last up $2.26, or up 2.43 percent, at $95.14 per barrel.
U.S. government bond prices inched higher, with the 10-year
note up 1/32 in price to yield 2.4140 percent.
(Additional reporting by Francesco Canepa in London and Richard
Leong and Ryan Vlastelica in New York, Editing by Chizu