GLOBAL MARKETS-Stocks advance to cap first half as G20 eyed

* MSCI ACWI advances, set for best H1 since 1997
* Trump-Xi meeting at G20 in focus
* Dollar set for weakest month since start of 2018

(Updates with close of European markets)
By Chuck Mikolajczak
NEW YORK, June 28 (Reuters) - A gauge of global stocks
advanced on Friday ahead of a meeting on trade between U.S.
President Donald Trump and Chinese President Xi Jinping, as
global equities were poised to close out their best first half
since 1997.
Trump and Xi will meet during a Group of 20 summit this
weekend in Osaka, Japan, for talks that could help resolve a
yearlong trade war between China and the United States, as signs
of its dampening effect on global growth have become more
prevalent. "At the end of the day both of these guys are smart enough,
but they are both tough negotiators," said Gordon Charlop,
managing director at Rosenblatt Securities in New York.
"So we are where we are and each guy is standing tall and
trying to get the best deal he can and they will continue to
work – this is the big leagues."
Charlop also pointed to the annual reconstitution of FTSE
Russell's indexes, likely to provide a surge of volume toward
the close of trading, as a focus. Economic data on Friday showed U.S. consumer spending
increased moderately in May and prices rose slightly, pointing
to slowing economic growth and benign inflation pressures, which
could give the Federal Reserve enough leeway to cut interest
rates in July. Wall Street rose modestly, although each of the major
indexes were on pace to snap a three-week winning streak, buoyed
by financial shares in following the results of the U.S. Federal
Reserve's "stress tests." The S&P 500 was set for its best June
performance since 1955. The Dow Jones Industrial Average .DJI rose 44.66 points,
or 0.17%, to 26,571.24, the S&P 500 .SPX gained 9.52 points,
or 0.33%, to 2,934.44 and the Nasdaq Composite .IXIC added
18.00 points, or 0.23%, to 7,985.76.
Banking shares also helped European indexes move higher
ahead of the meeting, with Germany's DAX leading the way with a
gain of more than 1% thanks to gains in Deutsche Bank AG
DBKGn.DE . The pan-European STOXX 600 index .STOXX rose 0.70% to
notch its best first half since 1998 and MSCI's gauge of stocks
across the globe .MIWD00000PUS gained 0.29%.
MSCI's index was also set to break a three-week streak of
gains but was on course for its best month since January,
gaining more than 6% in June as equities rallied after major
central banks around the globe pivoted toward easier monetary
policy stances.
That shift came as trade negotiations between the United
States and China broke down earlier this year. Now markets are
betting that an interest rate cut by the Federal Reserve of at
least a quarter of a percentage point is a virtual certainty as
early as the next policy meeting in July, according to CME's
FedWatch tool.
On Thursday, China's central bank pledged to support a
slowing economy, before the release of data that is expected to
show China's factory activity slowed for a second consecutive
month in June. The dollar index .DXY fell 0.02% against a basket of other
currencies and was set to turn in its weakest monthly
performance since January 2018 as anticipation of a Fed rate cut
has pushed the index down about 1.7% this month.

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Global assets in 2019 http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
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