GLOBAL MARKETS-Oil rises with eyes on Iraq; stocks, dollar drift higher

(Updates prices, changes comment)
By Rodrigo Campos
NEW YORK, Oct 7 (Reuters) - Oil prices jumped on Monday as
supply issues took center stage following a week of sharp
losses, while stocks and the dollar drifted higher with eyes on
the upcoming Sino-U.S. trade talks.
Oil was bid higher as deadly anti-government unrest gripped
Iraq, the second-largest producer among the Organization of the
Petroleum Exporting Countries.
The unrest in Iraq has begun to bring the so-called risk
premium that supports prices back into focus, after supply
concerns had eased in the wake of Saudi Arabia's
faster-than-expected recovery from attacks key oil facilities
last month, said John Kilduff, a partner at Again Capital LLC in
New York.
"There's a lot of nervousness about the situation in the
Middle East, particularly in Iraq, right now," Kilduff said.
"Oil prices have no choice but to go up."
U.S. crude CLc1 rose 0.11% to $52.87 per barrel and Brent
LCOc1 was last at $58.51, up 0.24% on the day. Remarks by Federal Reserve Chairman Jerome Powell and
minutes from the most recent Fed meeting will later this week
keep traders searching for signs on what the central bank is
considering in its upcoming meeting.
On Wall Street, major stock indexes edged higher clinging to
comments from White House economic adviser Larry Kudlow
regarding the state of the trade war with China. Stocks were hit last week on concerns that softening U.S.
manufacturing and services sector data were a harbinger for a
slide to recession in the world's largest economy. Strong jobs
data on Friday softened the blow.
"Investors are somewhat tired of the same song and dance
from the administration. They are not going to fully buy in
until something materializes from the meeting," said Matt
Ruffalo, senior strategist at Clarfeld Financial Advisors in New
Jersey.
The Dow Jones Industrial Average .DJI rose 75.04 points,
or 0.28%, to 26,648.76, the S&P 500 .SPX gained 6.54 points,
or 0.22%, to 2,958.55 and the Nasdaq Composite .IXIC added
25.13 points, or 0.31%, to 8,007.61.
The pan-European STOXX 600 index .STOXX rose 0.71% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.21%. Emerging market stocks lost 0.15%.
The dollar was little changed against a basket of its peers,
but Turkey's lira slid to its lowest level against the dollar in
more than a month after the White House said Ankara would soon
launch unilateral military operations in northeast Syria.

The Turkish lira TRY= lost 2.39% versus the U.S. dollar at
5.84, its weakest in over a month. A move above 5.8577 would
send the currency to its weakest since June.
U.S. President Donald Trump later threatened to "totally
destroy and obliterate the Economy of Turkey" if Ankara does
anything "off limits." The dollar index .DXY rose 0.15%, with the euro EUR=
down 0.02% to $1.0974. The Japanese yen weakened 0.42% versus the greenback at
107.41 per dollar, while Sterling GBP= was last trading at
$1.2303, down 0.23% on the day.
U.S. Treasury yields drifted higher, with benchmark 10-year
notes US10YT=RR last down 12/32 in price to yield 1.5528%,
from 1.514% late on Friday. Spot gold XAU= dropped 0.9% to $1,491.56 an ounce. U.S.
gold futures GCcv1 fell 1.07% to $1,490.10 an ounce.


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