GLOBAL MARKETS-Stocks gain on trade hopes, risk appetite lifts dollar

(Adds close of U.S. markets)
* Dow, S&P 500, Nasdaq close at new record highs
* U.S.' Ross says preliminary trade deal may be signed this
month
* MSCI world equity index rallies to highest since January
2018
* Oil prices creep higher on trade hopes and OPEC talks

By Herbert Lash
NEW YORK, Nov 4 (Reuters) - The dollar strengthened and
global stock markets rallied on Monday on signs the United
States and China are nearing the end of a damaging trade war as
well as indications the world economy may dodge a recession.
The three major U.S. stock indexes closed at fresh record
highs and MSCI's gauge of equity performance across the globe
rose to less than 2% from an all-time peak set in January 2018.
Beijing and Washington spoke Friday of progress in trade
talks and U.S. Commerce Secretary Wilbur Ross said on Sunday
licenses for U.S. companies to sell components to China's
blacklisted Huawei Technologies Co HWT.UL will come shortly.
Washington has effectively banned federal agencies from
buying Huawei telecommunications equipment and barred U.S.
companies from doing business with Huawei, citing national
security.
Gold edged lower while the dollar gained on higher risk
appetite as trade hopes grew after Ross said there was no reason
a deal could not be on track for signing this month.
A generally upbeat U.S. employment report on Friday raised
optimism a slowing U.S. economy was not headed toward recession.
"Market trends are being influenced by a better risk mood
overall," said Shaun Osborne, chief FX strategist at Scotiabank
in Toronto.
European shares rallied more than 1%, with many reaching
their highest level since January 2018. The STOXX 600 index
.STOXX of small, mid-sized and large companies across Europe
surged to highs last seen in July 2015.
Tariff-exposed European miners .SXPP gained 2.9% while
auto stocks .SXAP also rose 2.9%. Reports that Fiat Chrysler
FCHA.MI and Peugeot owner PSA PEUP.PA aimed to sign a final
merger agreement as early as next month also lifted stocks.
Earlier, trade hopes sent Asian stocks surging, with MSCI's
broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rising 1.3%.
Technology stocks boosted Wall Street, with the Philadelphia
Semiconductor index .SOX hitting a new high, up 2.2%.
MSCI's gauge of stocks across the globe .MIWD00000PUS
gained 0.54% while its emerging markets rose 1.46%.
"Signing these deals takes time. All that is needed for
markets to be happy right now is for an agreement to be
announced," said Rick Meckler, partner at Cherry Lane
Investments in New Vernon, New Jersey.
On Wall Street, the Dow Jones Industrial Average .DJI rose
114.75 points, or 0.42%, to 27,462.11. The S&P 500 .SPX gained
11.36 points, or 0.37%, to 3,078.27 and the Nasdaq Composite
.IXIC added 46.80 points, or 0.56%, to 8,433.20.
The euro slipped as investors awaited Christine Lagarde's
first speech as European Central Bank president. But the single
currency remained near multiple-week highs after Ross said
Washington may not slap tariffs on imported vehicles after "good
conversations" with automakers in the European Union, Japan and
Korea.
The dollar index .DXY rose 0.31%, with the euro EUR=
down 0.34% to $1.1127. The Japanese yen JPY= weakened 0.37%
versus the greenback at 108.57 per dollar.
Euro zone and U.S. bond yields rose on optimism a U.S.-China
trade deal appeared near.
Data on Monday showed morale among investors in the euro
zone jumped in November to its highest since June. Germany's benchmark 10-year Bund yield rose to -0.35%
DE10YT=RR while the benchmark 10-year U.S. Treasury note
US10YT=RR fell 14/32 in price to push its yield up to 1.7770%.
Oil prices rose, buoyed by an improved outlook for crude
demand as better-than-expected U.S. jobs growth fed hopes.
Brent crude futures for January LCOc1 rose 44 cents to
settle at $62.13 a barrel. U.S. crude futures CLc1 settled up
34 cents at $56.54 a barrel.
Spot gold XAU= dropped 0.4% to $1,507.25 an ounce.

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