(Updates headline, first paragraph and prices throughout with US

market open)

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Wall Street stocks advance

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Traders wait for news of Trump-Xi call

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Fed rate cut keeps investors upbeat

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European shares set to finish week slightly higher

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Gold prices rise, crude oil falls

By Chibuike Oguh and Elizabeth Howcroft

NEW YORK, Sept 19 (Reuters) - Global stocks rose on

Friday and were on track for a weekly gain driven by positive

sentiment on Wall Street as well as European equity markets

following key central bank decisions.

The U.S. Federal Reserve cut interest rates by a quarter of a

percentage point on Wednesday, for the first time since

December, while Norway and Canada also cut rates.

On Wall Street, all three indexes were trading higher after

rising to record highs in the prior session. The Dow Jones

Industrial Average rose 0.11% to 46,192.35, the S&P 500

rose 0.24% to 6,647.74 and the Nasdaq Composite

rose 0.44% to 22,570.26.

European shares rose 0.02% and were set to gain

0.05% this week.

Japan's Nikkei fell 0.57% after the Bank of Japan

decided to start selling its holdings of risky assets. MSCI's

gauge of stocks across the globe rose 0.12% to

980.42, hovering near a record high reached in the previous

session, and was poised to add 0.85% this week.

Investors are betting that central bank rate cuts will boost

stocks further.

"For the next few weeks, our view is that we continue to

keep risk-on orientation in our portfolios; we continue to

overweight equities in the portfolio," said Amelie Derambure,

senior multi-asset portfolio manager at Amundi.

"Our stance is that the market should continue to creep

higher in the coming weeks, with some volatility as always."

The Fed stopped short of endorsing market expectations for a

clear string of rate cuts, emphasising a meeting-by-meeting,

data-dependent approach. The Fed's tone, along with the wide

range of views within the central bank, disappointed some

investors, who had hoped the stock market would be boosted by a

rapid shift to lower rates, analysts said.

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

rose 1.2 basis points to 4.116%. The 2-year note

yield, which typically moves in step with interest

rate expectations for the Fed, fell 0.3 basis points to 3.565%.

Markets are waiting for any news of a call between Chinese

President Xi Jinping and U.S. President Donald Trump, which is

expected to cover the TikTok deal and tariffs.

The U.S. dollar index for the third straight session

against peers, rising 0.22% to 97.56, although it is set to

finish the week slightly lower.

The dollar strengthened 0.27% to 0.794 against the Swiss

franc but was down 0.11% to 147.82 against the

Japanese yen.

The euro was down 0.22% against the dollar at

$1.176.

The British pound fell, down 0.45% on the day at $1.34915

The Bank of England on Thursday kept rates on hold, but slowed

the pace at which it is unloading the government bonds it

purchased in previous crises.

European government bond yields rose, with Germany's 10-year

yield rising 2.2 basis points at 2.737%. While

shorter-dated bonds have benefited from expectations for rate

cuts, longer-dated bond yields have risen on investor concern

about government finances.

The Bank for International Settlements warned this week that

record global share prices appear increasingly disconnected from

signals in the bond market that investors are concerned about

government debt.

Oil prices were down, as traders' worries about fuel demand

outweighed the boost oil prices would typically get from a U.S.

rate cut.

Brent crude futures were 0.52% at $67.08 a barrel,

while U.S. West Texas Intermediate futures lost 0.53%, to

$63.23.

Gold was up 0.51% at $3,662.62, heading for its fifth

straight week of gains.