GLOBAL MARKETS-Investors flock to safe-haven bonds, stocks off highs

(Updates with afternoon trading)

* Trump official downplays concerns about a global trade war

* U.S. stocks mixed in afternoon trading

* U.S., Euro bond yields lower

By Nick Brown

NEW YORK, March 15 (Reuters) - U.S. stock indexes waveredbetween gains and losses on Thursday as short-term concernseased over a global trade war, but fears of longer-terminstability kept demand high for safe-haven government bonds onboth sides of the Atlantic.

U.S. industrial stocks climbed after a White House tradeadviser sought to downplay the chances of a trade war in thewake of recent protectionist policies from U.S. President DonaldTrump's administration.

Trump's tough approach to global trade, including newtariffs on metals imports, will not necessarily provokeretaliation from trading partners, Peter Navarro, the topadviser on international economic exchanges, said on CNBC.

Caterpillar was up more than 1 percent, while GEand 3M had made similar gains earlier beforelosing some ground.

The Dow Jones Industrial Average rose 80.06 points,or 0.32 percent, to 24,838.18, the S&P 500 lost 5.64points, or 0.21 percent, to 2,743.84 and the Nasdaq Compositedropped 28.67 points, or 0.38 percent, to 7,468.14.

Wall Street is trying to avoid its first four-day losingstreak of 2018. Equities, especially shares of manufacturers,have been under pressure from Trump's tariff plans, including amove to impose duties of up to $60 billion on Chinese importswhile pushing for $100 billion cut in its trade surplus.

In Europe, a strong showing by insurance companies likeMunich Re and Generali, both up more than2.5 percent, offset political concerns over creeping far-rightinfluence in Italy and growing tensions between Russia and theU.K..

The pan-European FTSEurofirst 300 index rose 0.53percent, while MSCI's gauge of stocks across the globeshed 0.21 percent.

The U.S. dollar, meanwhile, gained against a basket of sixother currencies. The dollar index rose 0.48 percent,with the euro down 0.52 percent to $1.2301.

Fears over political uncertainty did not disappearaltogether.

The dollar remained down against the Japanese yen, which isoften a sign that investors are uncertain about the U.S.political and economic climates.

Bond yields, too, reflected an increased appetite forgovernment bonds viewed as less risky.

Many yields in the euro zone fell to their lowest levelsince late January, pushed down by both political uncertaintyand expectations for a slow exit from the European CentralBank's stimulus.

Germany's 10-year bond yield fell to 0.57 percent, itslowest level in seven weeks. French and Dutch 10-year bondyields also fell to their lowest levels since January.

The U.S. Treasury yield curve continued to flatten amidconcerns about a trade war. And yields also fell Thursdayafternoon on a report that Robert Mueller, thespecial prosecutor investigating meddling by Russia in the 2016U.S. Presidential Election, subpoenaed documents from the TrumpOrganization.

Benchmark 10-year notes last fell 2/32 in priceto yield 2.8243 percent, from 2.817 percent late on Wednesday.

The 30-year bond last fell 2/32 in price toyield 3.0608 percent, from 3.058 percent Thursday.

Oil prices edged higher in choppy trade. U.S. cruderose 0.36 percent to $61.18 per barrel and Brent waslast at $65.08, up 0.29 percent on the day.

(Additional reporting by Marc Jones, Fanny Potkin and KateDuguid; Editing by Bernadette Baum and Nick Zieminski)