GLOBAL MARKETS-Stocks buoyed by Wall Street; US Treasury yields rise

(Updates at 11:08 a.m. EST/1608 GMT, adds NEW YORK dateline and byline) By Chris Prentice and Huw Jones NEW YORK/LONDON, Feb 9 (Reuters) - The S&P 500 crossed the 5,000-point milestone on Friday as U.S. inflation data raised expectations the Federal Reserve will cut interest rates this year, as closely watched U.S. Treasury yields rose and European shares eased. The greenback =USD dipped after the U.S. data, but was still headed for a fourth weekly rise. Oil LCOc1 rose, with worries lingering of a broadening conflict in the Middle East after Israel rejected a ceasefire offer from Hamas. The MSCI All Country stock index .MIWD00000PUS was up 0.24% by 11:08 a.m. EST (1608 GMT). The mood in stock markets was buoyed by Wall Street, where the S&P 500 index .SPX rose above 5,000 points for the first time ever, capping a 21% surge since October. "A close above this closely watched level will undoubtedly create headlines and further feed fear of missing out (FOMO) emotions," said Adam Turnquist, chief technical strategist for LPL Financial in Charlotte, North Carolina. "Outside of a potential sentiment boost, round numbers such as 5,000 often provide a psychological area of support or resistance for the market. Researchers often refer to them as ‘cognitive shortcuts’ that create a round-number bias." U.S. monthly consumer prices rose less than initially estimated in December, but underlying inflation remained a bit warm, data showed on Friday. U.S. inflation data for January is also coming next week. The Dow Jones Industrial Average .DJI fell 72.18 points, or 0.19%, to 38,654.15; the S&P 500 .SPX gained 17.23 points, or 0.35%, to 5,015.24; and the Nasdaq Composite .IXIC gained 148.33 points, or 0.92%, to 15,942.04. The yield on benchmark U.S. 10-year notes US10YT=RR rose 1.9 basis points to 4.189%, from 4.17% late on Thursday. The two-year note US2YT=RR yield, which typically moves in step with interest rate expectations, rose 3 basis points to 4.4862%, from 4.456% late on Thursday. The STOXX 600 .STOXX index fell 0.08%, while Europe's broad FTSEurofirst 300 index .FTEU3 fell 1.55 points, or 0.08%. Inflation in Germany, Europe's biggest economy, eased in January to 3.1%, adding fuel to bets on when the European Central Bank will begin easing rates. However, euro zone bond yields DE10YT=RR hit multi-week highs after several ECB rate setters warned against easing monetary policy too early. "Indeed, it seems pretty clear now that the ECB will be waiting for European wage data statistics at the end of April before likely cutting rates in June," ING bank said in a note to clients. Japanese shares hit 34-year highs. The yen JPY= recovered after falling to a 10-week low, with traders reassessing their bets on how quickly the Bank of Japan might raise rates. In China, mainland markets were closed and Hong Kong traded thinly and shut early, with the Hang Seng .HSI down 0.8% amid worries that authorities may not deliver on promises for support. "I am betting that (decisive action) is happening," said Chi Lo, senior markets strategist for Asia Pacific at BNP Paribas Asset Management. In commodities, U.S. crude futures CLc1 gained 0.39% to $76.59 a barrel and the benchmark Brent contract LCOc1 rose to $81.77 per barrel on the day. Spot gold XAU= lost 0.62% to $2,020.59 an ounce. U.S. gold futures GCc1 fell 0.6% to $2,020.00 an ounce. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates YTD http://tmsnrt.rs/2egbfVh Global asset performance http://tmsnrt.rs/2yaDPgn Asian stock markets https://tmsnrt.rs/2zpUAr4 S&P 500 forward P/E https://tmsnrt.rs/3SRgPPe ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Huw Jones; Additional reporting by Tom Westbrook; Editing by Lincoln Feast, Kirsten Donovan and Jonathan Oatis) (([email protected]; +65 6973 8284;)) ((To read Reuters Markets and Finance news, click on https://www.reuters.com/finance/markets For the state of play of Asian stock markets please click on: 0#.INDEXA ))