*

US stocks regain some ground on prospects of Ukraine

ceasefire

*

Treasury yields turn around as does gold

*

Oil prices settle slightly higher

(Updates prices to late US afternoon trade, adds oil

settlement)

By Sinéad Carew and Alun John

NEW YORK/LONDON, March 11 (Reuters) - Equities regained

some lost ground on Tuesday as investors took encouragement from

Ukraine's agreement to a ceasefire with Russia, even as they

feared the economic impact of U.S. tariffs.

Ukraine agreed to an immediate 30-day ceasefire during talks

with U.S. officials in Saudi Arabia and U.S. Secretary of State

Marco Rubio said this left the ball in Russia's court to

respond.

This was after President Donald Trump added to economic

jitters by saying he told his commerce secretary to add an

additional 25% tariff on all U.S. steel and aluminum imports

from Canada, bringing the total tariff on those products to 50%.

"Uncertainty and volatility continue in this market," said

Mona Mahajan, head of investment strategy at Edward Jones,

pointing to Trump's latest tariff announcement and resulting

concerns about the economy.

"Economic growth had started to slow even before the tariff

uncertainty in the U.S. That is not uncommon in the first

quarter of the year, but what is uncommon is adding to that with

uncertainty around policy."

On Monday, the S&P 500 suffered its biggest one-day

drop this year after Trump, in a weekend Fox News interview,

declined to rule out a recession resulting from his trade

policies, and talked about a "period of transition."

Adding to concerns about tariffs, Tuesday's data showed U.S.

small-business confidence dropped for a third straight month in

February, wiping away much of the gains notched after Trump's

November election victory.

Along with the confidence slump, Phil Blancato, chief market

strategist at Osaic Wealth in New York, pointed to guidance from

Delta Airlines and retailer Kohl's that

suggested a softening of consumer spending ahead.

Investors were also anxiously awaiting the latest

information on inflation conditions from the U.S. consumer price

index reading for February, due on Wednesday.

A high reading would add to last month's

hotter-than-expected data, which included the biggest monthly

price gain since August 2023.

At 2:52 p.m. EDT (1852 GMT) the Dow Jones Industrial Average

was down 188.56 points, or 0.45%, to 41,716.72.

After spending most of the morning lower and going 10% below

its latest record-high close, the S&P 500 was up 11.45

points, or 0.2%, at 5,624.63 and the Nasdaq Composite

rose 182.80 points, or 1.05%, to 17,645.07.

MSCI's gauge of stocks across the globe was

down 0.85 points, or 0.1% at 831.88, after falling as low as

822.44, which was more than 7% below its most recent record

close on February 19.

Earlier, the pan-European STOXX 600 index had

closed down 1.7%.

After falling sharply on Monday, U.S. Treasury yields also

steadied, pulling away from five-month lows hit earlier in the

session.

The yield on benchmark U.S. 10-year notes rose

7.8 basis points to 4.291%, from 4.213% late on Monday.

The 2-year note yield, which typically moves in

step with interest rate expectations for the Federal Reserve,

rose 4.5 basis points to 3.941%.

In currencies, the U.S. dollar rose to a one-week high

against the Canadian dollar while the euro hit a new four-month

peak against the greenback on hopes for a German defence

spending deal.

The euro was up 0.9% at $1.0928 but against the

Japanese yen, the dollar strengthened 0.38% to 147.82.

The Canadian dollar strengthened 0.26% versus the

greenback to C$1.44 per dollar.

Oil prices rose, after falling sharply on Monday, although

gains were capped as concerns mounted over a U.S. slowdown and

the impact of tariffs on global economic growth.

U.S. crude settled up 0.33% at $66.25 a barrel and

Brent settled at $69.56 per barrel, up 0.4%.

Gold prices gained after selling off in the prior day's

session, rising 1.01% to $2,918.63 an ounce. U.S. gold futures

rose 0.85% to $2,915.50 an ounce.