* MSCI world stocks <.MIWD00000PUS> up 0.9 pct to 239.8
* Euro stocks, bonds rally after ECB offers 1-yr funds
* Dlr jumps from 2-wk low pre-Fed, SNB seen selling francs
* Emerging markets <.MSCIEF> outperform, up 2 percent
By Mike Dolan and Carolyn Cohn
LONDON, June 24 (Reuters) - Stocks, bonds and the dollar
rose on Wednesday after the European Central Bank lent banks
almost half a trillion euros in a first ever one-year tender and
the Swiss National Bank was seen selling Swiss francs.
In a move that pushed euro interest rates lower across the
maturity spectrum, the ECB lent 442.241 billion euros ($612.8
billion) in a 371-day operation at a fixed 1.00 percent -- well
above the 300 billion forecast in a Reuters poll. []
"This does indicate there is demand for funds. It suggests
that there is money going into the economy, and that is exactly
what the central banks want to do to reflate the global economy.
This is a very supportive feature for the day," said Mike
Lenhoff, strategist at Brewin Dolphin.
The MSCI world equity index <.MIWD00000PUS> rose 0.9 percent
after hitting its lowest since May 18 on Tuesday on concern over
the global economy.
The pan-European FTSEurofirst 300 <> index of top
shares was up 1.5 percent at 846.38 points. The index had lost
3.2 percent in the previous two sessions.
Banks added the most points to the index, with Barclays
<BARC.L> and Deutsche Bank <DBKGn.DE> up more than four percent
each on the day.
Euro zone interest rate futures rose and shorter-dated
government bond yields hit session lows, steepening the yield
curve after the ECB tender.
"It all makes sense to rally quite strongly as the market
digests the fact that we have been given all of this liquidity,"
said Peter Chatwell, interest rate strategist at Calyon.
At 1200 GMT, the two-year German government yield was 1.413
percent <EU2YT=RR>, down six basis points on the day and having
plumbed a session low of 1.405 percent earlier. The 10-year Bund
yield <EU10YT=RR> was one basis points lower at 3.461 percent.
VOLATILE DOLLAR
On volatile foreign exchanges, the dollar rallied from its
lowest in nearly two weeks against a basket of currencies after
the ECB tender and SNB sales of Swiss francs for dollars <CHF=>
as well as euros <EURCHF=> were cited by traders.
The SNB has pledged to intervene to cap gains in the franc
as part of its efforts to stimulate the Swiss economy with near
zero interest rates.
Although the SNB declined to comment, traders said the bank
was selling francs in significant amounts, with some saying the
sales were conducted through the Basel-based Bank for
International Settlements.
"It appears they (the SNB) have stepped up the
aggressiveness of their intervention," said Marc Chandler, chief
currency strategist at Brown Brothers Harriman in New York.
Earlier, the euro/dollar exchange rate retreated from its
highs after the ECB tender pushed euro deposit rates lower.
But speculation about the outcome of the U.S. Federal
Reserve's policy-making Open Market Committee meeting later on
Wednesday has kept trading erratic.
The U.S. central bank is widely expected to keep interest
rates on hold at a record low and keep its planned debt
purchases unchanged.
The focus is on whether the Fed tweaks its statement to rein
in a slide in U.S. Treasuries that has threatened the economy's
budding recovery. []
"The Fed may adopt even stronger language to signal that it
is likely to keep rates on hold in coming months, in order to
combat rising market expectations of near-term tightening," said
analysts at Barclays Capital.
Benchmark Treasury yields surged to an eight-month peak
above 4 percent earlier this month, pushing up mortgage rates
and offsetting the Fed's efforts to help the economy by buying
hefty amounts of government and mortgage-related debt.
"We do not look for the Fed to ramp up its Treasury
purchases at this meeting," the Barclays analysts said. "It is
likely to continue its current asset purchase programme and
reassess it at the August meeting."
Ten-year U.S. Treasury yields <US10YT=RR> were about three
basis points higher at 3.654 percent. Wall St stock futures
<SPU9> were up about 0.5 percent in pre-market trading.
Oil slid back about one percent to below $69 a barrel
<CLc1>, following a 2.6 percent gain in the previous session.
(Additional reporting by Joanne Frearson and Emelia Sithole in
London, Blaise Robinson in Paris, editing by Mike Peacock)
