GLOBAL MARKETS-Stocks, gold gain as trade war spurs both hopes, concerns

Published 12/10/2019, 12:47 AM
Updated 12/10/2019, 12:48 AM
GLOBAL MARKETS-Stocks, gold gain as trade war spurs both hopes, concerns
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(Adds U.S. market open, byline, changes dateline; previous
LONDON)
* Chinese exports fall, highlight trade war damage
* Enthusiasm over last week's jobs data buoys stocks
* Trade war worries weigh on stocks
* Fed, ECB meet later this week

By Herbert Lash
NEW YORK, Dec 9 (Reuters) - Global equity markets advanced
on Monday as stocks on Wall Street held near record highs on
hopes U.S.-Sino talks delay a U.S. tariff deadline this coming
Sunday, while gold rose as investors hedged against a possible
escalation in the trade war.
Crude oil prices fell and the dollar slipped against the
safe-haven Swiss franc after data showed Chinese exports in
November shrank for the fourth straight month, renewing concerns
about damage to global demand caused by the 17-month trade
fight.
A Dec. 15 deadline that is set to usher in $156 billion in
fresh U.S. tariffs on Chinese exports stirred caution and
bolstered the dollar against currencies highly sensitive to the
trade war such as the Australian and New Zealand dollars.
A tug was apparent between enthusiasm for stocks during a
year in which MSCI's all-country world index has gained 20% and
investors worried about the U.S.-Sino trade spat.
Spot gold XAU= added 0.1% to $1,460.67 an ounce.
Buoyed by Friday's blockbuster U.S. jobs report, traders and
investors held out for a delay in the U.S. tariff deadline,
while expecting more positive gestures from both sides.
China hopes it can reach a trade agreement with the United
States that satisfies both sides, Assistant Commerce Minister
Ren Hongbin told reporters overnight. "Markets are telling us that there are hopes for something
positive to come up before the deadline," said Peter Cardillo,
chief market economist at Spartan Capital Securities in New
York. "The two sides might just roll back tariffs or even
postpone the date but something will happen," he said.
MSCI's gauge of stocks across the globe .MIWD00000PUS
gained 0.03%, while stocks on Wall Street traded little changed
and slid in Europe.
The pan-European STOXX 600 index .STOXX lost 0.24%.
On Wall Street, the Dow Jones Industrial Average .DJI fell
61.19 points, or 0.22%, to 27,953.87. The S&P 500 .SPX lost
1.96 points, or 0.06%, to 3,143.95 and the Nasdaq Composite
.IXIC dropped 5.22 points, or 0.06%, to 8,651.31.
U.S. Treasury yields fell after rising three straight days
as risk appetite ebbed after the weak Chinese trade data.
Benchmark 10-year notes US10YT=RR rose 6/32 in price to
yield 1.8242%.
German exports rose unexpectedly in October, a morale boost
for Europe's largest economy, but it had little impact on the
other European bonds.
Yields on Germany's 10-year bund DE10YT=RR , a benchmark
for the euro zone, fell to -0.304%.
Oil prices fell on the Chinese export date.
Brent futures LCOc1 fell 18 cents to $64.21 a barrel. West
Texas Intermediate oil futures CLc1 slid 8 cents, or 1.01% to
$59.12 a barrel.
The dollar index .DXY fell 0.08%, with the euro EUR= up
0.09% to $1.1067.
The Japanese yen JPY= weakened 0.03% versus the greenback
at 108.63 per dollar.


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U.S.-China trade war timeline Image https://tmsnrt.rs/34N2vff
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