* Sterling skids after BoE's Carney says UK likely needs
stimulus
* Britain's FTSE ends June above pre-Brexit level
* Shares of consumer staples boost Wall Street
* Global stock close quarter with slight gain
(Updates to U.S. market close)
By Edward Krudy
NEW YORK, June 30 (Reuters) - World stocks rose for a third
straight day and bond yields hovered near record lows as
investors expected additional stimulus measures from central
banks in the wake of Britain's vote to leave the European Union
and as the Bank of England raised the prospect of bond buying
this summer.
Renewed concerns over global growth and oversupply forced
oil prices down again as both Brent and U.S. crude traded below
$50 per barrel. Gold, a safe-haven play in times of uncertainty,
edged higher and was on track for its biggest monthly rise since
February.
Sterling reversed its gains as Bank of England Governor Mark
Carney said the central bank would probably need to pump more
stimulus into Britain's economy. Investors largely expect the
bank to cut interest rates over the summer and ramp up its
bond-buying program. UK shares surged after the news.
The European Central Bank is looking at loosening its rules
for bond purchases to allow it to by a wider range of debt if it
moves toward returning to quantitative easing, Bloomberg
reported, citing people familiar with the discussions. The euro
fell against the dollar and European stocks surged.
"There may be more of a growth crisis than any acute
financial stress" from Brexit, said Stanley Sun, interest rate
strategist at Nomura Securities International in New York.
Markets have regained their poise after a short bout of
volatility following last week's so-called Brexit vote, but
concerns remain about the longer-term global economic outlook
and the potential for renewed turbulence.
The rebound in equities was not enough, however, to
completely offset losses suffered in recent days. Stocks
worldwide are down 0.8 percent for the month and on track for
their worst monthly performance since February.
Wall Street rose as the benchmark S&P 500 index .SPX
gained 1 percent, although the drop in oil prices suppressed
gains as the index approached all-time highs. .N
The MSCI All-Country World index .MIWD00000PUS was up 1.1
percent, but is set to end the month about 0.9 percent lower,
its worst month since February. Still, it ended the quarter with
a slight gain, rising 0.3 percent.
U.S. Treasuries have been drawing demand as bond yields in
other developed markets fall into negative territory. Yields of
benchmark 10-year Treasury notes US10YT=RR edged higher to
1.48 percent, up less than 1 basis point from late on Wednesday.
That compared with a yield on 10-year German government
bonds of -0.127 percent DE10YT=RR . British 10-, 20- and
30-year government bond yields all struck record lows.
UK BLUE CHIPS RECOVER
The UK's FTSE 100 .FTSE surged 2.3 percent and has gained
nearly 3 percent since Britain voted last week to leave the EU.
.L
In currency trading, sterling GBP= fell 0.6 percent to
$1.3338, above a 31-year trough of $1.3122 touched on Monday. It
has still lost about 7 percent in the quarter.
The euro, which lost ground in the days after the Brexit
vote, lost 0.2 percent to $1.1103.
Brent crude LCOc1 settled at $49.68 a barrel, down 93
cents, after jumping more than 4 percent overnight, thanks to a
larger-than-expected drawdown in U.S. crude inventories. U.S.
crude CLc1 settled at $48.33, down $1.55. O/R
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Asset performance in 2016: http://reut.rs/2938RL0
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>