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GLOBAL MARKETS-Dollar, stocks slip amid trade deal uncertainty

Published 11/12/2019, 12:18 AM
Updated 11/12/2019, 12:24 AM
GLOBAL MARKETS-Dollar, stocks slip amid trade deal uncertainty
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(Adds U.S. market open, changes byline, dateline; previous
LONDON)
* Trump comments dash last week's optimism over trade deal
* MSCI world index, U.S. stocks fall
* Hong Kong violence escalates in rare daytime clashes
* Gold and yen gain; trade war worries also weigh

By Herbert Lash
NEW YORK, Nov 11 (Reuters) - The dollar slid and global
equity markets fell on Monday after U.S. President Donald
Trump's remarks over the weekend suggested an end to the trade
war with China was still not in sight, dashing recent investor
optimism.
Moody's warning on Britain's sovereign debt weighed on
shares in London, while escalating violence in Hong Kong led
Asian equities to post their worst day since August, boosting
demand for the safe-haven yen and gold.
Trump said on Saturday that the U.S.-Sino trade talks were
moving along "very nicely" but more slowly than he would have
liked. He also said there had been incorrect reporting about
U.S. willingness to lift tariffs. U.S. and Chinese officials last week said the two countries
had agreed to roll back tariffs already in place in a "phase
one" trade deal. The 16-month trade war between the world's largest economies
has slowed global growth. Data over the weekend showed that
China's producer prices fell the most in more than three years
in October, underscoring the trade war's impact. "It's difficult to say who stands to lose more from this
deal falling apart, but this last-minute jostling does not
inspire confidence," said Craig Erlang, senior market analyst at
PANDA Corp.
"We swing from optimism to pessimism on a daily basis and
never feel any the wiser," Erlang said.
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
0.31%, while the FTSEurofirst 300 index .FTEU3 of leading
regional shares fell 0.04%.
On Wall Street, the Dow Jones Industrial Average .DJI fell
107.78 points, or 0.39%, to 27,573.46. The S&P 500 .SPX lost
9.72 points, or 0.31%, to 3,083.36 and the Nasdaq Composite
.IXIC dropped 18.55 points, or 0.22%, to 8,456.76.
The U.S. dollar, which often acts as a safe-haven asset when
political and economic uncertainty reins, was lower against the
yen and the Swiss franc, other traditional safe havens.
The dollar index .DOXY fell 0.15%, with the euro EURO=
up 0.14% to $1.1032. The yen JPY= strengthened 0.12% versus
the greenback at 109.11 per dollar, while the dollar was 0.28%
weaker against the franc CHEF= , at 0.9944 per dollar.
Oil prices were mixed.
Brent crude LCOc1 rose 17 cents at $62.68 a barrel. U.S.
crude CLc1 fell 2 cents at $57.22 a barrel.
A sell=off in southern European bond markets gathered pace
and pushed yields higher, with the inconclusive election in
Spain adding to uncertainty among debt investors.
Government bond markets across the single-currency bloc have
been hurt in recent weeks by optimism over a U.S.-China trade
deal and improving economic data.
U.S. Treasury markets were closed for the Veterans Day
holiday.


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