(Refiles to fix typo in first paragraph)
* Global stocks rise on Putin's conciliatory tone
* Euro zone bond yields plumb record lows after euro zone
* Oil prices fall on signs of weak demand
* Euro recovers; yen at break-even
By Herbert Lash
NEW YORK, Aug 14 Global equity markets edged
higher on Thursday after President Vladimir Putin of Russia
sounded a conciliatory note over the crisis in Ukraine, while
bond yields in Europe fell to record lows as the euro zone's
recovery stalled in the second quarter.
Putin told Russian ministers and members of parliament in
Crimea that Russia would stand up for itself but not at the cost
of confrontation with the outside world, easing off months of
tough rhetoric over Ukraine.
Stocks on Wall Street opened slightly higher, following
gains in Europe, where equity markets have tumbled in past weeks
over fears of an escalation of tensions between the West and
Moscow over Ukraine.
The pan-European FTSEurofirst 300 index was 0.27
percent higher at 1,329.04, and MSCI's all-country world index
rose 0.3 percent.
On Wall Street, the Dow Jones industrial average was
up 20.36 points, or 0.12 percent, at 16,672.16. The Standard &
Poor's 500 Index was up 4.09 points, or 0.21 percent, at
1,950.81. The Nasdaq Composite Index was up 8.72 points,
or 0.20 percent, at 4,442.84.
Bond yields dropped to record lows across the euro zone, and
the euro hovered near its weakest in nine months after Germany
reported its economy shrank in the second quarter, fueling
expectations of more European Central Bank stimulus.
German 10-year bond yields briefly traded
below 1 percent for the first time, according to traders who
contribute data to trading platforms, while Spanish and French
bond yields also plumbed record lows.
Benchmark 10-year U.S. Treasuries rose 5/32 in
price, pushing the yield down to 2.4104 percent.
A surprise 0.2 percent contraction in economic output in
Germany, the euro zone's growth engine, and stagnation in France
halted the currency bloc's recovery. Analysts polled by Reuters
had expected the euro zone to eke out a 0.1 percent quarterly
Persistent fears about Russia's aid convoy to eastern
Ukraine, which Kiev and the West reckon could be a pretext for
an invasion, also helped intensify demand for lower-risk U.S.
and German government debt.
"These events are pushing German and global yields lower,"
said Andrew Mulligan, head of global strategy at Standard Life
Investments in London. "Some of the engines of growth in Europe,
especially Germany, are slowing. France and Italy are showing
The euro rose above nine-month lows against the dollar
, trading 0.16 percent stronger at $1.3385. The Japanese
yen traded near break-even at 102.42.
Brent oil fell by more than $1 to below $103 a barrel, just
above its year low, as higher U.S. jobless claims and Germany's
economic contraction highlighted weak demand, while supplies are
ample despite conflicts in Iraq and Libya.
Brent crude for delivery in September was down $1.63
U.S. crude for September delivery was down $1.30
cents at $96.29 a barrel.
(Additional reporting by Sujata Rao in London, Reporting by
Herbert Lash; Editing by Dan Grebler)