(Updates with US markets close; adds oil and gold settlement

and fresh analyst quote)

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Wall Street stocks advance, European shares gain

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Yields on 30-year US Treasury fall

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Tokyo mulls cutting super-long bond issuance, Reuters

reports

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Investors focus on Nvidia ( NVDA ) earnings, Fed speeches

By Chibuike Oguh and Tom Wilson

NEW YORK, May 27 (Reuters) - Global shares rose on

Tuesday, buoyed by signs of easing trade tensions, even as

longer-dated U.S. Treasury yields were set for their biggest

one-day drop in more than a month.

U.S. President Donald Trump paused his threatened tariffs

until July 9 on U.S. imports of European goods following a

weekend call with European Commission President Ursula von der

Leyen.

Data showed on Tuesday that U.S. consumer confidence snapped

five straight months of decline and improved in May amid a truce

in the trade war between Washington and Beijing.

All three Wall Street indexes finished higher, with the

benchmark S&P 500 and Nasdaq adding more than 2% following

Monday's Memorial Day holiday. The S&P 500's 11 subsectors all

gained, led by consumer discretionary and technology stocks.

The Dow Jones Industrial Average rose 1.78% to

42,343.65, the S&P 500 gained 2.05% to 5,921.54 and the

Nasdaq Composite climbed 2.47% to 19,199.16.

European shares rose 0.33%, with the defence

subindex reaching a record high.

UK shares climbed 0.69% following a holiday at the

start of the week. MSCI's gauge of stocks across the globe

rose 1.21% to 880.84.

"We are seeing a relief rally as more and more there's

confirmation that all this (tariff threat) basically is

negotiation tactics that have real teeth although not a bluff,

meaning that Trump is not trying to drive us over the cliff but

he's taken us to the edge," said Daniel Genter, president and

chief investment officer at Genter Capital Management in Los

Angeles."

"I think people are getting more confident that we are not

going to have massive tariffs that are going to significantly

interrupt the U.S. economy or business flow, and have a reversal

of modest GDP growth."

The yield on 30-year U.S. Treasuries fell 8

basis points to 4.9572%, on track for the biggest one-day

decline since mid-April.

The 30-year yields - at the epicentre of the market selloff

in April following Trump's initial raft of tariffs - are still

just below 5%, near their highest since October 2023.

The move mirrored a near-20-basis-point fall in yields for

Japanese 30-year debt that came after a Reuters

report on Tuesday that Tokyo will consider trimming issuance of

the super-long bonds, after recent sharp rises in yields.

"It was good news over the weekend, at least for the market,

with the 30-day extra time frame for the EU trade tariff

negotiation deadline. I guess the market was happy about that,"

said Wasif Latif, chief investment officer at Sarmaya Partners

in New Jersey.

"Then the Bank of Japan said it was not going to issue as

many bonds and so the yield story looked a little bit better."

Investors will focus on results from Nvidia ( NVDA ) on

Wednesday, with the chipmaker expected to report a 66% jump in

first-quarter revenue.

Speeches from a slew of Federal Reserve policymakers and

Friday's U.S. core PCE price index are also due, which could

provide clues on the outlook for U.S. rates.

The U.S. dollar advanced against major peers including the

yen, euro and Swiss franc following the decision of the Japanese

authorities to curb bond issuance and improvement in U.S.

consumer confidence.

The dollar strengthened 1.09% to 144.39 against

the Japanese yen. Against the Swiss franc, the dollar

strengthened 0.82% to 0.82745. The euro was down 0.51% at

$1.132725.

The dollar index, which measures the greenback

against a basket of currencies including the yen and the euro,

rose 0.66% to 99.608.

Gold prices fell as the U.S. dollar advanced. Spot gold

dropped 1.15% to $3,304.52 an ounce. U.S. gold futures

settled 1.9% lower at $3,300.40.

Oil prices eased, spurred by worries of a supply glut after

Iranian and U.S. delegations made progress on their talks and on

expectations that OPEC+ will decide to increase output at a

meeting later this week.

Brent crude futures closed down 1% at $64.09 a

barrel, while U.S. West Texas Intermediate crude fell

around 1.04% to $60.89 a barrel.