(Adds oil, gold settlement prices)
* MSCI world stock gauge, U.S. shares reach record highs
* Oil gains as Russia touts easing of OPEC+ output
* Dollar trades little changed
By Herbert Lash
NEW YORK, Dec 23 (Reuters) - The dollar traded little
changed while equity markets added to a year-end rally on
Monday, with both a gauge of stock performance worldwide and
Wall Street hitting new highs amid renewed optimism over
U.S.-China trade and growth prospects.
China's finance ministry said it will lower tariffs on
products ranging from frozen pork and avocados to certain
semiconductors next year as Beijing looks to boost imports amid
a slowing economy and a trade war with the United States.
China will implement temporary import tariffs, which are
lower than the most-favored-nation tariffs, on more than 850
products, an increase from 706 products that were taxed at
temporary rates in 2019, the ministry said.
MSCI's gauge of stocks across the globe .MIWD00000PUS
gained 0.11%, reaching a new record, while its emerging market
index rose 0.26%.
MSCI's all-country world index has risen more than 3% in
December as U.S.-China trade tensions eased and confidence grew
that Britain would avoid a chaotic exit from the European Union.
The index is up 23% in 2019, set for its best year in a decade.
The market remains focused on the trade war, said Peter
Cardillo, chief market economist at Spartan Capital Securities
in New York.
"It's a rally being based upon momentum buying now. Stocks
are being marked up, and it will continue right up until year
end," he said, referring to the U.S. equity market.
President Donald Trump on Saturday said the United States
and China would "very shortly" sign their so-called Phase 1
trade pact. The benchmark S&P 500 and Nasdaq composite set intra-day
highs.
The Dow Jones Industrial Average .DJI rose 111.21 points,
or 0.39%, to 28,566.3, the S&P 500 .SPX gained 4.42 points, or
0.14%, to 3,225.64 and the Nasdaq Composite .IXIC added 26.61
points, or 0.3%, to 8,951.57.
The Dow was lifted by a 2.77% gain in shares of Boeing Co
BA.N after the planemaker fired Chief Executive Dennis
Muilenburg over intense scrutiny and industrial setbacks sparked
by twin fatal crashes of its 737 MAX jetliner. Shares in Europe traded near break-even, with the
pan-European STOXX 600 index .STOXX closing down 0.03%.
The blue-chip FTSE 100 index .FTSE in London rose 0.54% to
a five-month high and ninth straight gain, its longest winning
streak since May 2017.
In France, the CAC 40 index .FCHI gained 0.13% but the
trade-sensitive Deutsche Boerse DAX .GDAXI fell by the same
amount. The index has gained steadily since September as the
prospect of a Sino-U.S. trade deal improved.
The dollar held near a two-week high against a basket of
currencies, while sterling fell on concerns over the British
government's hard line on Brexit talks.
The dollar, which benefits when the U.S. economy outperforms
others, as well as during bouts of risk aversion due to its
safe-haven status, has been supported since Washington and
Beijing came to an interim trade agreement earlier this month.
The dollar index is up 1.6% for the year.
On Monday the index .DXY fell 0.03%, with the euro EUR=
up 0.14% to $1.1093. The Japanese yen JPY= strengthened 0.05%
versus the greenback at 109.38 per dollar, while Sterling GBP=
traded at $1.2932, down 0.54% on the day.
U.S. Treasury yields were little changed to slightly lower
in generally thin trading as markets headed into the end of
2019.
New orders for U.S.-made capital goods barely rose in
November and shipments fell, suggesting business investment will
probably remain a drag on economic growth in the fourth quarter.
Details of the Commerce Department report were not as soft
as the headline suggested, analysts said, lifting yields off
their lows.
Benchmark 10-year U.S. Treasury notes US10YT=RR last fell
5/32 in price to yield 1.9329%.
Euro zone bond yields were broadly flat on Monday as
investors chose safe-haven government debt in thin pre-holiday
trade. Germany's benchmark 10-year Bund was little changed at
-0.24% DE10YT=RR , about 6 basis points below last week's high.
Oil prices edged higher as Russia said a producer group led
by the Organization of the Petroleum Exporting Countries may
consider easing output cuts next year, helping cap optimism that
the U.S.-China trade deal will be signed soon and spur demand.
Brent crude LCOc1 settled up 25 cents at $66.39 a barrel
in thin trading. West Texas Intermediate CLc1 rose 8 cents to
settle at $60.52 a barrel.
U.S. gold futures GCcv1 settled 0.5% higher at $1,488.70
an ounce.
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