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Dollar dips, bond yields up after Trump attack

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PredictIT shows increased chance of Republican win

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Crypto stocks higher

(Updates to 3 p.m. ET/1900 GMT)

By Caroline Valetkevitch

NEW YORK, July 15 (Reuters) - World stock indexes and

Treasury yields rose on Monday while the dollar dipped as

investors weighed the prospect of Republican Donald Trump

winning the U.S. presidential race after he survived an

assassination attempt over the weekend.

Long-dated U.S. bond yields rose on the assumption that

Trump policies would add to government debt and inflation, while

crypto stocks rallied along with bitcoin. Trump has

presented himself as a champion of cryptocurrency.

Investors have viewed a Trump win as likely to mean more tax

cuts and less regulation. The S&P 500 energy sector was

up more than 2%.

On online betting website PredictIt, contracts for a Trump

election victory traded at 68 cents, up from 60 cents on Friday,

with a potential payout of $1. Contracts for a Biden victory

were at 26 cents.

"It's very short-term thinking with respect to the polls and

what it will do for his candidacy but also for the market," said

Bruce Zaro, managing director at Granite Wealth Management in

Plymouth, Massachusetts. "We are in an election year, and when

you look at historical election year results, they are generally

very good."

The motive behind a 20-year-old gunman's attempt on the life

of Trump remained a mystery, with the suspect having been killed

and the FBI unable to determine an ideology that may have been

behind the attack on Saturday.

Investors also digested comments from Federal Reserve Chair

Jerome Powell, who said on Monday the three U.S. inflation

readings over the second quarter of this year do "add somewhat

to confidence" that the pace of price increases is returning to

the Fed's target in a sustainable fashion.

The Dow hit a record high early, helped by some upbeat

earnings results including from Goldman Sachs ( GS ), which was

up 2%.

The Dow Jones Industrial Average rose 278.85 points,

or 0.70%, to 40,279.75, the S&P 500 gained 23.21 points,

or 0.41%, to 5,638.56 and the Nasdaq Composite gained

89.73 points, or 0.49%, to 18,488.17.

MSCI's gauge of stocks across the globe rose

0.72 points, or 0.09%, to 829.27. The STOXX 600 index

fell 1.02%.

Dour updates from British luxury group Burberry and

watchmaker Swatch Group raised questions about consumer

confidence.

U.S. retail sales data due on Tuesday was likely to be

closely watched for clues on how consumers are faring.

The dollar index, which measures its performance

against a basket of currencies, fell 0.07% at 104.22, with the

euro down 0.09% at $1.0896. Against the Japanese yen

, the dollar strengthened 0.03% at 157.93.

Bitcoin gained 10.41% to $63,526.79.

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

4.6 basis points to 4.233%, from 4.187% late on Friday.

Oil prices were down slightly, with worries about demand in

top importer China offseting support from OPEC+ supply restraint

and ongoing tensions in the Middle East.

U.S. crude lost 30 cents to settle at $81.91 a barrel

and Brent fell 18 cents to $84.85.

(Additional reporting by Isla Binnie in New York, Iain Withers

in London and and by Lisa Mattackal and Ankika Biswas in

Bengaluru and by Wayne Cole in Sydney; Editing by Christian

Schmollinger, Jamie Freed, Arun Koyyur, Susan Fenton, Will

Dunham and Tomasz Janowski)