(Adds U.S. market open, byline, dateline; previous LONDON)
* Wall Street indexes set record highs
* MSCI's all-country index edges closer to record high
* U.S.-China trade talks continue to hog spotlight
* Dollar trades little changed
By Herbert Lash
NEW YORK, Nov 26 (Reuters) - The dollar and a gauge of
global stock markets traded little changed on Tuesday as record
highs on Wall Street were offset by caution as traders
scrutinized the latest developments in the prolonged U.S.-China
trade talks.
Oil prices traded near flat after China's Commerce Ministry
said Chinese and U.S. trade negotiators held a phone call as the
two sides try to hammer out a "Phase one" deal in a trade war
that has dragged on for 16 months. U.S. and euro zone bond yields slid as investors saw
progress being made after the ministry said Chinese Vice Premier
Liu He spoke with U.S. Trade Representative Robert Lighthizer
and U.S. Treasury Secretary Steven Mnuchin.
MSCI's gauge of stocks across the globe .MIWD00000PUS
gained 0.07%, as the global benchmark traded within half a
percentage point of an all-time high set in January 2018.
Equity markets have rallied on hopes of a deal but traders
are looking for what the reaction might be once a deal is
reached, said Dennis Dick, a proprietary trader at Bright
Trading LLC in Las Vegas.
"Traders are starting to book some profits and just get
cautious. Cautious optimism is driving us higher right now," he
said.
The pan-European STOXX 600 index .STOXX rose 0.17% while
MSCI's emerging markets index .MSCIEF fell 0.63%.
All three major indexes on Wall Street set record highs.
The Dow Jones Industrial Average .DJI rose 28.37 points,
or 0.1%, to 28,094.84. The S&P 500 .SPX gained 4.34 points, or
0.14%, to 3,137.98 and the Nasdaq Composite .IXIC added 17.04
points, or 0.2%, to 8,649.52.
Oil prices traded little changed, helped by predictions for
a draw on U.S. crude stockpiles as doubts lingered about the
economic impact of a trade deal.
"The positive effect this is having on the oil price is more
psychological in nature," said Commerzbank analyst Carsten
Fritsch. He noted that he does not expect oil demand to pick up
noticeably even after any partial agreement is signed.
U.S. crude stockpiles were expected to have declined 300,000
barrels last week, according to a Reuters poll of analysts,
ahead of reports from the American Petroleum Institute on
Tuesday and the Energy Information Administration on Wednesday.
Brent crude futures LCOc1 slid 9 cents to $63.74 a barrel,
while West Texas Intermediate crude CLc1 rose 10 cents to
$58.11 a barrel.
The dollar also traded little changed.
Data showed the U.S. goods trade deficit fell sharply in
October as both exports and imports declined, pointing to a
continued reduction in trade flows that has been blamed on the
Trump administration's "America First" policy. U.S. consumer confidence fell for a fourth straight month in
November while other data showed an unexpected drop in new
home sales last month.
The dollar index .DXY was flat, with the euro EUR= up
0.02% to $1.1015. The Japanese yen JPY= weakened 0.12% versus
the greenback at 109.06 per dollar.
Benchmark 10-year U.S. Treasury notes US10YT=RR last rose
10/32 in price to push their yield down to 1.7311%.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
MSCI world stock index https://tmsnrt.rs/34mBHlX
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>