(Adds U.S. market open, changes dateline; previous LONDON)
* British PM May announces resignation, pound bounce fades
* Trump: 'Dangerous' Huawei could be in China trade deal
* Dollar off 2-year highs; oil retreats
* World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Herbert Lash
NEW YORK, May 24 (Reuters) - World equity markets rebounded
on Friday from heavy selling the previous day after President
Donald Trump said U.S. complaints against China's Huawei
Technologies might be resolved within the framework of a
Sino-U.S. trade deal.
But tensions remained high, with China accusing U.S.
Secretary of State Mike Pompeo of fabricating rumors after he
said Huawei's HWT.UL chief executive was lying about the
telecom network gear maker's ties to the Chinese government.
While Trump on Thursday said a trade deal could resolve
U.S. complaints against Huawei, he also called the Chinese
telecommunications giant "very dangerous," suggesting resolution
of the trade spat and stand-off over Huawei is not near.
"Today's action is mostly based on sentiment because the
overall market is trading at a full valuation," Rahul Shah,
chief executive of Ideal Asset Management in New York, said of
the equity market. It remains highly susceptible to headline
risk, Shah said, though investors took in stride a Commerce
Department report that said new orders for U.S.-made capital
goods fell more than expected in April. The report also showed orders were not as strong as
previously thought in March and shipments were weak over the
last two months, further evidence that manufacturing and the
broader U.S. economy were slowing after a growth spurt in the
first quarter driven by exports and a buildup of inventories.
The pan-European STOXX 600 index .STOXX rose 0.50% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.37%.
On Wall Street, the Dow Jones Industrial Average .DJI rose
72.25 points, or 0.28%, to 25,562.72. The S&P 500 .SPX gained
4.92 points, or 0.17%, to 2,827.16 and the Nasdaq Composite
.IXIC added 23.54 points, or 0.31%, to 7,651.83.
The dollar edged away from two-year highs set on Thursday
after the weak U.S. manufacturing activity data sparked worries
that the trade conflict with China may hurt the world's largest
economy and erode the currency's safe-haven status.
Against a basket of six major currencies, the dollar .DXY
was down 0.22% at 97.641 and noticeably off a two-year high of
98.371 the previous session.
The euro EUR= rose 0.18% to $1.1200 while the Japanese yen
JPY= strengthened 0.22% versus the greenback at 109.35.
U.S. Treasury yields rose after Thursday's sharp falls, with
investors booking profits after a surge in government bond
prices and ahead of a long U.S. holiday weekend.
Trump's remarks about Huawei and the trade dispute helped
fuel the decline in bond prices.
Benchmark 10-year U.S. Treasury notes US10YT=RR fell 7/32
in price to push yields up to 2.3220%.
U.S. markets will close on Monday for Memorial Day, a
federal holiday.
British Prime Minister Theresa May's resignation briefly
sent sterling fluctuating wildly. It popped up nearly half a
percent against the dollar after the announcement but the gains
were short-lived and it subsequently traded back at $1.2672
GBP=D4 , and not far off the day's lows versus the euro.
On Thursday, the pound suffered its 14th consecutive day of
losses against the euro, its longest losing streak on record.
EURGBP=
Sterling GBP= was up 0.33% against the dollar at $1.2696.
Oil see-sawed after early gains and remained on track for
its biggest weekly drop of the year, pressured by rising
inventories and concern about slowing economic growth.
U.S. crude inventories rose to their highest since July
2017, suggesting ample supplies in the world's top consumer
EIA/S , with prices also hit by worries that the U.S.-China
trade conflict is developing into a more entrenched dispute.
Brent crude LCOc1 , the global benchmark, rose 6 cents to
$67.82 a barrel. U.S. West Texas Intermediate crude CLc1
traded flat at $57.91.
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MSCI World Asia as of May 24 2019 https://tmsnrt.rs/2YLviNL
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