August 26, 2014 / 5:10 PM / 3 years ago

GLOBAL MARKETS-Stocks gain on ECB stimulus hopes, U.S. economic data

* U.S. durable goods and consumer confidence data strong

* European bond yields fall further

* Euro erases gains against the dollar (Updates prices to close of European markets)

By Sam Forgione

NEW YORK, Aug 26 (Reuters) - Worldwide stock indexes rose on Tuesday and European bond yields fell on expectations of more stimulus from the European Central Bank, while strong U.S. data on durable goods and consumer confidence underpinned U.S shares.

The benchmark S&P 500 topped the 2,000 mark, after first breaching that milestone on Monday, and hit a record high. The Dow also hit an intraday record.

Speculation grew that the European Central Bank is preparing a program of large-scale asset purchases to weaken the euro and try to jump-start growth in the struggling euro zone. Those expectations have bolstered European bond and stock markets since Friday, when ECB President Mario Draghi hinted at a policy shift in a speech in Jackson Hole, Wyoming.

“Draghi’s readiness to do more is providing the necessary boost for equity indexes,” said Ashraf Laidi, chief global strategist at City Index. “Buying on the dips does remain the path of least resistance in the absence of any destabilizing factor.”

MSCI’s all-country world index was up 1.02 points, or 0.24 percent, to 431.7.

In Europe, the broad FTSEurofirst 300 index closed up 0.75 percent, at 1,376.83 points. The 10-year German bund yield was at 0.939 percent, down from 0.955 percent late Monday.

On Wall Street, investors took heart from the data on U.S. durable goods orders and consumer confidence. The Conference Board, an industry group, reported that U.S. consumer confidence rose in August to its highest level since October 2007, topping expectations.

The Commerce Department reported that U.S. durable goods orders jumped 22.6 percent in July, the biggest gain on record, though the number was skewed by strong international demand for aircraft. Excluding transportation, orders fell 0.8 percent.

The Dow Jones industrial average was last up 46.88 points, or 0.27 percent, to 17,123.75, the S&P 500 was up 3.45 points, or 0.17 percent, to 2,001.37 and the Nasdaq Composite was up 10.22 points, or 0.22 percent, to 4,567.57.

The benchmark 10-year U.S. Treasury note was roughly unchanged in price to yield 2.39 percent.

“It’s tough for Treasuries to sell off here given what’s going on in Europe,” said Gennadiy Goldberg, interest rate strategist at TD Securities in New York.

The euro erased gains against the dollar and was last down 0.02 percent, at $1.3189.

Brent crude was last down $0.06, or 0.06 percent, at $102.59 a barrel. U.S. crude was last up $0.31, or 0.33 percent, at $93.66 per barrel. (Additional reporting by Nigel Stephenson in London and Karen Brettell in New York; Editing by Dan Grebler and Leslie Adler)

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