GLOBAL MARKETS-Stocks climb new peaks on trade deal, oil slips on demand worries

(Adds close of U.S. markets)
* MSCI world, Wall Street indexes post fresh records
* Oil slips on doubts trade pact to spur global growth
* Dollar weakens, gold edges higher

By Herbert Lash
NEW YORK, Jan 15 (Reuters) - Key world equity indexes
climbed to new records on Wednesday on hopes a U.S.-China trade
deal will reduce harmful tensions, but oil prices slid on doubts
the pact will spur world growth and boost crude demand.
U.S. President Donald Trump and Chinese Vice Premier Liu He
signed a Phase 1 deal that will roll back some tariffs and see
China boost purchases of U.S. goods and services, defusing a
prolonged conflict between the world's two largest economies.
Liu said in remarks at the White House that the United
States and China need to step up cooperation, and that the deal
benefits both countries and the world. The deal capped an
18-month dispute that had roiled markets.
The centerpiece of the deal is a pledge by China to purchase
at least an additional $200 billion worth of U.S. farm products
and other goods and services over two years, over a baseline of
$186 billion in purchases in 2017.
MSCI's all-world stock index and the three major indexes on
Wall Street set record intraday highs. The MSCI benchmark, along
with the Dow and S&P 500, also posted record closing highs,
while the Dow closed above the 29,000 mark for the first time.
The deal is unlikely to significantly change the growth
outlook, but it should allow companies to make the capital
investments they have not, which is positive, said Marvin Loh,
senior global macro strategist at State Street Global Markets.
"What's most important to investors is a potential
de-escalation and signs that de-escalation will continue this
year, which is the outlook period for a lot of investors," he
said.
"If we can somehow take this out as one of the bigger risks
that we had all last year, it does give some confidence to the
market. Not necessarily from an economic but from a risk
parameter perspective," Loh said.
MSCI's gauge of stocks across the globe .MIWD00000PUS
gained 0.07%. Earlier in Europe, the pan-regional STOXX 600
index .STOXX closed up 0.1% while MSCI's broadest
measure of Asia-Pacific markets outside Japan .MIAPJ0000PUS
closed down 0.35%. Japan's Nikkei .N225 lost 0.45%.
On Wall Street, the Dow Jones Industrial Average .DJI rose
90.55 points, or 0.31%, to 29,030.22. The S&P 500 .SPX gained
6.14 points, or 0.19%, to 3,289.29 and the Nasdaq Composite
.IXIC added 7.37 points, or 0.08%, to 9,258.70. Emerging market stocks lost 0.53%.
Oil prices slipped on concerns the trade agreement may not
provide much of a demand boost because the United States intends
to keep tariffs on Chinese goods until a Phase 2 deal is
reached. Prices were also under pressure from a report by the
Organization of Petroleum Exporting Countries. OPEC expects
lower demand for its oil in 2020 even as global demand rises, as
rival producers grab market share and the United States looks
set for another output record.
Brent crude LCOc1 fell 49 cents to settle at $64.00 a
barrel. U.S. West Texas Intermediate crude futures CLc1
settled down 42 cents at $57.81 a barrel.
The dollar pared losses but remained lower against the euro
and the yen after the signing of a trade deal that may prove a
mild negative for the greenback as it removes uncertainty.
The dollar index .DXY , tracking the unit against six major
peers, fell 0.14%, with the euro EUR= up 0.18% to $1.1147.
U.S. Treasury yields declined as investors repositioned
around new data showing producer prices barely rose in December.
A rise in the cost of goods was offset by weakness in
services, the latest indication of tame inflation pressures that
could allow the Federal Reserve to stand pat on interest rates
this year.
Benchmark 10-year notes US10YT=RR last rose 9/32 in price
to push its yield lower to 1.7864%.
In Europe, investors flocked to new fund raisings by Italy
and Belgium a day after Spain saw record demand. The 10-year German bond yield fell 3 basis points to
-0.201%, not too far from the more than six-month highs of
-0.157% touched at the start of January.
U.S. gold futures GCv1 settled up 0.6% at $1,554 an ounce.
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