* MSCI all-world index gains, U.S. stocks up in early
* BOJ comments push yen higher vs dollar
* Fed minutes expected during the U.S. session
(Updates with U.S. markets, changes byline, dateline, previous
By Caroline Valetkevitch
NEW YORK, May 21 World stock markets rose while
U.S. bond yields edged higher on Wednesday on views the Federal
Reserve could raise interest rates more slowly than expected.
The euro declined for a second straight session against the
dollar on expectations of further easing from the European
Minutes from the Fed's last meeting, due later Wednesday,
could shed light on the timing of rate rises. Fed Chair Janet
Yellen said in March the U.S. central bank could raise rates six
months after its bond-buying program ended.
"There's a concern that rates will rise much more slowly
than the market is anticipating," said Sean Murphy, Treasuries
trader at Societe Generale in New York.
Adding to that view, New York Federal Reserve President
William Dudley on Tuesday said the Fed would likely be
"relatively slow" in hiking rates.
"I suspect they are going to continue this low interest rate
environment, very accommodative monetary policy, for a very long
period of time in an effort to help markets feel a little bit
calmer ...," said Joseph Tanious, global market strategist at
J.P. Morgan Asset Management.
Later on Wednesday, Yellen makes a commencement address in
MSCI's all-world equity index, which tracks
shares in 45 nations, was up 0.4 percent, while European shares
were up 0.6 percent.
On Wall Street, the Dow Jones industrial average rose
125.19 points or 0.76 percent, to 16,499.5, the S&P 500
gained 10.79 points or 0.58 percent, to 1,883.62 and the Nasdaq
Composite added 24.77 points or 0.6 percent, to
In the foreign exchange market, the dollar fell to a
3-1/2-month low against the yen on comments from Bank of Japan
Governor Haruhiko Kuroda, who gave no hint of further monetary
easing in the near term.
The dollar fell to 100.805 yen in London trading, but
recovered in New York trading to trade higher at 101.54.
In mid-morning New York trading, the euro fell to one-week
lows against the dollar of $1.3652 and was last at
$1.3661, down 0.3 percent on the day.
Benchmark 10-year Treasury notes were last down
10/32 in price to yield 2.54 percent, from 2.509 percent late
Oil rose to $110 a barrel, supported by an industry report
showing U.S. crude inventories had unexpectedly fallen last week
and by persistent disruption to Libya's output amid renewed
Brent crude gained 38 cents to $110.07 a barrel,
while U.S. crude rose 82 cents at $103.15.
(Additional reporting by Nigel Stephenson and Alex Lawler in
London and Sam Forgione in New York; Editing by John
Stonestreet, Toby Chopra and James Dalgleish)