* Graphic: FX rates in 2017 tmsnrt.rs/2egbfVh
* Europe stocks up, world shares set for 4th month of gains
* Trump flags big infrastructure spend before Tuesday speech
* Oil futures firm, gold retreats from 3-1/2-month high
By Marc Jones
LONDON, Feb 28 World stocks hovered just off
all-time highs and were on course for a fourth straight month of
gains on Tuesday, as investors awaited a speech by U.S.
President Donald Trump for signals on infrastructure spending
and tax cuts.
Global share markets have risen more than 10 percent since
Trump won power in November and investors are hoping a speech to
U.S. Congress later will detail his "big" spending promises.
Asian markets were subdued overnight but some upbeat company
earnings helped European stocks add 0.1 percent as the
region looked to pull out of a three-day lull and extend a
2.5-percent gain this month.
In the currency markets, the dollar, which has not
taken to the Trump trade quite so enthusiastically, was treading
water against most of its major peers, with the only notable
move a dip against the yen to 112.41.
Gold was also steady, having hit a 3-1/2 month high
on Monday and 10-year U.S. Treasury yields hovered
at about 2.36 pct, some 10 basis points down on where they
started the year.
That suggests that bond investors at least are fully
convinced about a substantial pick-up in U.S. growth and higher
"While markets no doubt appear to like what they are
hearing, the president now needs to deliver, he's talked the
talk and he now needs to walk the walk," CMC markets chief
strategist Michael Hewson said.
Trump met U.S. state governors at the White House on Monday
and said he sees "big" infrastructure spending and that he is
seeking a "historic" increase in military spending of more than
That means some $54 billion of military spending is now on
the table, though that appears to be funded by cuts elsewhere in
Led by engineering, construction and defence firms, Wall St
stocks eked out another all-time high, with the Dow Jones
recording its 12th straight record, a winning streak not seen
since 1987. Futures pointed to it struggling to keep the run
In Europe, the economic signals were a largely encouraging
although not universally so.
Sweden's crown rose as the economy showed solid
2.3 percent year-on-year growth, inflation figures were stronger
across central Europe, though British consumer morale suffered
its latest knock which sent the pound down.
Support programmes from the world's big central banks are
also still having an impact.
Germany, which is benefitting from ECB stimulus, was
expected to sell two-year Schatz bonds at almost minus 1 percent
later, another record low that means investors are effectively
paying for the privilege of holding German government debt.
The euro barely budged on the day at $1.0588 with February
set to be its fourth monthly fall in the last five.
France's bond yields continued to fall as jitters about its
upcoming election stabilised.
In commodity markets, oil edged higher to just over $56 a
barrel, underpinned by high compliance with OPEC's agreed
The organisation has so far surprised the market with its
discipline which could increase further in coming months as the
biggest laggards - the United Arab Emirates and Iraq - pledge to
catch up quickly with their targets.
"With the prospect of OPEC extending the current cuts even
longer, we would expect to see prices continue to push higher
from here," ANZ analysts said in a note.
Industrial metals such as copper and nickel
were both a touch lower. The latter has surged almost 17 percent
this month while copper is up almost 30 percent since late
A strike at the Escondida copper mine in Chile, the world's
largest, appeared far from ending as the conflict neared its
third week, with the union denying a news report that it had
returned to talks with mine owner BHP Billiton.
For Reuters Live Markets blog on European and UK stock
markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets
(Additional reporting by Lisa Twaronite in Tokyo; Editing by