GLOBAL MARKETS-Stocks climb on muted trade hopes, dollar slips

(New throughout, updates and adds oil, gold settlement prices)
* British PM May announces resignation, pound bounce fades
* Trump: 'Dangerous' Huawei could be in China trade deal
* Dollar off 2-year highs; oil rebounds
* GRAPHIC-World FX rates in 2019: http://tmsnrt.rs/2egbfVh

By Herbert Lash
NEW YORK, May 24 (Reuters) - World equity markets rebounded
on Friday from the previous day's sharp fall, boosted after U.S.
President Donald Trump said complaints against China's Huawei
Technologies might be resolved within the framework of a
Sino-U.S. trade deal.
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.
On Thursday, Trump said a trade deal could resolve U.S.
complaints against Huawei, but also called the company "very
dangerous."
"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
equities.
Investments remain highly susceptible to headline risk, Shah
said, though investors took in stride a U.S. Commerce Department
report that said new orders for domestic capital goods fell more
than expected in April. The report also showed March orders were not as strong as
previously thought, and shipments were weak over the last two
months, further evidence that manufacturing and the U.S. economy
were slowing.
MSCI's gauge of stock performance across 47 countries
.MIWD00000PUS gained 0.47%, while the pan-European STOXX 600
index .STOXX closed up 0.56%.
Investors appeared unfazed by British Prime Minister Theresa
May's resignation as Conservative party leader after failing in
a final attempt to win parliamentary support for her deal to
exit the European Union.
On Wall Street, the Dow Jones Industrial Average .DJI rose
117.75 points, or 0.46%, to 25,608.22. The S&P 500 .SPX gained
8.1 points, or 0.29%, to 2,830.34 and the Nasdaq Composite
.IXIC added 22.63 points, or 0.3%, to 7,650.91.
The dollar edged off two-year highs set on Thursday,
pressured as the weak U.S. manufacturing activity data sparked
worries the trade conflict with China may hurt the world's
largest economy.
Against a basket of six major currencies, the dollar .DXY
was down 0.28% at 97.586, well off the two-year high of 98.371
the previous session.
The euro EUR= rose 0.23% to $1.1206 while the Japanese yen
JPY= strengthened 0.26% versus the greenback at 109.31.
U.S. Treasury yields rose, as Trump's remarks about Huawei
encouraged investors to book profits a day after a surge in
government bond prices and ahead of a long U.S. holiday weekend.
Benchmark 10-year U.S. Treasury notes US10YT=RR fell 8/32
in price to push yields up to 2.3237%.
U.S. markets will close on Monday for Memorial Day, a
federal holiday.
May's resignation briefly sent sterling fluctuating wildly.
It rose nearly half a percent against the dollar after the
announcement and traded near those gains at $1.2716 GBP=D4 .
Against the euro, sterling snapped a 14-day losing streak.
EURGBP=
Oil prices climbed 1 percent but still posted their biggest
weekly drop of the year, pressured by rising inventories and
worries about the global economy. O/R
U.S. crude inventories rose to their highest since July
2017, suggesting ample supplies in the world's top consumer
EIA/S . Brent crude LCOc1 , the global benchmark, rose 93
cents to settle at $68.69 a barrel. For the week, it fell almost
5%.
U.S. West Texas Intermediate crude CLc1 traded up 72 cents
to settle at $58.63. For the week WTI fell 6.5 percent.
Gold steadied, under pressure from the equities rebound but
supported by a weaker dollar and growing expectations for a
U.S.interest rate.
U.S. gold futures for June GCcv1 settled down 0.1% at
$1,283.60 an ounce.

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GRAPHIC-MSCI World Asia as of May 24 https://tmsnrt.rs/2YLviNL
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