* Global stock markets near record highs, Dow close to
* U.S. jobs growth gathering strength in June -ADP
* Dollar rises, bonds fall on upbeat ADP jobs data
* Fed Chair Yellen due to speak
(Updates prices; changes dateline; previous LONDON)
By Richard Leong
NEW YORK, July 2 Major stock markets held near
record highs on Wednesday on signs of an improving global
economy and continued central bank support, while the dollar and
bond yields rose on an upbeat report on U.S. employment.
The Dow Jones Industrial average and the S&P 500 index
closed at record highs on Tuesday, and the Dow flirted with the
17,000 milestone for a second day.
Evidence of faster economic growth also supported gold
prices, though they were below a three-month peak set on
Oil prices in London fell to their lowest in nearly three
weeks on a possible substantial recovery in Libyan exports after
rebels said they would reopen two oil terminals.
"Equity investors are anticipating growth," said Jack Ablin,
chief investment officer at BMO Private Bank in Chicago. "The
economic background is improving. That's why you are seeing
bonds sell off."
The latest evidence the U.S. economy has recovered from its
first-quarter contraction was 281,000 new jobs in the U.S.
private sector last month, according to payroll processor ADP.
That was the strongest monthly gain in 1-1/2 years.
While the world's biggest economy has regained steady
footing, the U.S. Federal Reserve has shown no hints it will
raise interest rates from near zero until the second half of
2015 at the earliest.
Investors will look for clues from Fed Chair Janet Yellen,
who was to speak on financial stability later on Wednesday.
They also awaited a meeting of the European Central Bank on
Thursday to provide more guidance after data showed euro-zone
industrial prices fell for a fifth consecutive month in May.
In early U.S. trading, the Dow Jones industrial average
rose 11.21 points, or 0.07 percent, at 16,967.28. The
Standard & Poor's 500 Index was up 1.94 points, or 0.10
percent, at 1,975.26. The Nasdaq Composite Index was up
5.67 points, or 0.13 percent, at 4,464.32
The pan-European FTSEurofirst 300 equity index was
up 0.3 percent at 1,385.93. Tokyo's Nikkei closed up 0.3
The MSCI world equity index rose 0.2 percent
The yield on benchmark U.S. 10-year Treasuries notes
rose to the highest in a week at 2.61 percent.
In currency trading, the dollar index, which tracks
the greenback versus a basket of six currencies, rose 0.18
percent to 79.962.
Among commodities, spot gold prices rose $3.96 to
$1,329.40 an ounce.
Brent crude was last down 35 cents, or 0.3 percent,
at $111.94 a barrel. U.S. crude was last down 3 cents, or
0.03 percent, at $105.31 per barrel.
(Reporting by Richard Leong; Additional reporting by Lionel
Laurent, Anirban Nag and Alistair Smout in London; Editing by
Toby Chopra and Dan Grebler)