GLOBAL MARKETS-Wall St set for weekly gain, monthly loss; Treasury yields advance

By Stephen Culp

NEW YORK, Nov 28 (Reuters) - U.S. stocks followed their European counterparts higher in a truncated, post-holiday session on Friday that was complicated by an outage at an exchange operator as investors closed the book on a tumultuous month and kicked off the holiday shopping season.

The three major U.S. stock indexes were modestly higher, benchmark Treasury yields strengthened, and gold advanced.

All three indexes appear set to log gains for the holiday-shortened week, on growing optimism that the U.S. Federal Reserve will cut interest rates at its December meeting. The indexes are on track for November losses, however, as risk appetite was soured during the month by the longest-ever U.S. government shutdown and simmering worries over inflated tech stock valuations.

It would mark the S&P 500's first monthly drop since April.

CME OUTAGE RESOLVED

An outage at CME Group, the world's largest exchange operator, caused mayhem in financial markets as trading was frozen on its currency platform and futures, affecting foreign exchange, commodities, Treasuries and stocks. The issue was resolved with less than an hour to go before the U.S. market opened.

"I think (the CME outage) has been brushed aside and we won't hear anything more about it," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York. "We'll see how it unwinds throughout the day, but I think volume will be very low."

U.S. equities trading ends at 1 p.m. ET (1800 GMT), while the bond market closes an hour later.

The crucial holiday shopping season is officially in full swing and appears to be off to a solid start. Overall online shopping on Thanksgiving rose 5.3%, according to Adobe Analytics, and while other early sales figures were promising, an air of caution was expressed by some shoppers who are mindful of overspending when inflation remains elevated and the labor market seems to be softening.

"The outlook for the consumer this holiday season is mixed," Ghriskey said. "Fed futures indicate a 25-basis-point cut on the Fed funds rate, but that percentage will bounce around between now and the Fed meeting. There's certainly some concern about the consumer and the economy."

The Dow Jones Industrial Average .DJI rose 278.31 points, or 0.59%, to 47,705.43, the S&P 500 .SPX gained 25.45 points, or 0.37%, to 6,838.06 and the Nasdaq Composite .IXIC added 82.56 points, or 0.36%, to 23,297.70.

European shares reversed earlier losses and were last modestly higher as rising bets of a Fed rate cut and progress toward a Russia-Ukraine ceasefire buoyed sentiment.

MSCI's gauge of stocks across the globe .MIWD00000PUS rose 3.02 points, or 0.30%, to 1,003.72.

The pan-European STOXX 600 .STOXX index rose 0.23%, while Europe's broad FTSEurofirst 300 index .FTEU3 gained 5.58 points, or 0.24%.

Emerging market stocks .MSCIEF fell 3.17 points, or 0.23%, to 1,367.22. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS closed lower by 0.3%, to 703.50, while Japan's Nikkei .N225 rose 86.81 points, or 0.17%, to 50,253.91.

The dollar was heading for its worst weekly performance since late July on rising odds of further monetary easing from the Fed.

The dollar index =USD, which measures the greenback against a basket of currencies including the yen and the euro, was essentially unchanged, with the euro EUR= down 0.03% at $1.1591.

Against the Japanese yen JPY=, the dollar strengthened 0.01% to 156.32.

In cryptocurrencies, bitcoin BTC= gained 1.11% to $92,417.72. Ethereum ETH= rose 1.14% to $3,068.57.

U.S. Treasury yields advanced on a low-volume day.

The yield on benchmark U.S. 10-year notes US10YT=RR rose 3.3 basis points to 4.031%, from 3.998% late on Wednesday.

The 30-year bond US30YT=RR yield climbed 3.6 basis points to 4.6795% from 4.644% late on Wednesday.

The 2-year note US2YT=RR yield, which typically moves in step with interest rate expectations for the Federal Reserve, rose 2.3 basis points to 3.504%, from 3.481% late on Wednesday.

Oil prices were mixed as futures resumed trading after the CME outage. Investors kept an eye on protracted peace negotiations between Russia and Ukraine and looked ahead to the outcome of an OPEC+ meeting on Sunday for clues regarding potential output changes.

U.S. crude CLc1 rose 0.95% to $59.21 a barrel and Brent LCOc1 fell to $63.29 per barrel, down 0.08%.

Gold prices were poised for a monthly gain on Fed rate cut optimism. Spot gold XAU= rose 0.99% to $4,198.09 an ounce. U.S. gold futures GCc1 rose 0.8% to $4,198.50 an ounce.