(Adds gold, oil settlement prices)
* Chinese exports fall, highlight trade war damage
* Trade war worries weigh on stocks, oil
* Fed, ECB meet later this week
By Herbert Lash
NEW YORK, Dec 9 (Reuters) - Global equity markets traded
flat on Monday as investors hoped officials would delay more
U.S. tariffs set to take effect on Chinese goods this coming
Sunday, while gold held firm 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, reviving concerns
about damage to global demand caused by the 17-month trade
spat.
A Dec. 15 deadline that will usher in $156 billion in U.S.
tariffs on Chinese goods stirred caution, leading MSCI's
all-country world index to trade flat while shares on Wall
Street slid and European equities closed lower.
Investors have bid up stocks in recent weeks, pushing the
three major Wall Street indexes close to new record highs and
MSCI's gauge of global equity performance to less than three
points from its all-time peak.
Buoyed by Friday's blockbuster U.S. jobs report, traders and
investors held out hope for a delay in the U.S. tariff deadline,
while expecting more positive gestures from both sides.
Large-cap U.S. equities are trading at about 17.5 times
forward earnings, said Michael Mullaney, director of global
markets research at Boston Partners in Boston. The S&P 500 could
reach 3250 or 3300 next year if a trade agreement reached, he
said.
"The market right now already have a favorable resolution
(to the trade talks) baked into the prices," Mullaney said, but
if no trade deal is forthcoming, prices could fall 7% to 10%, he
said.
China hopes it can reach a trade agreement with the United
States that satisfies both sides, Assistant Commerce Minister
Ren Hongbin told reporters overnight. MSCI's gauge of stocks across the globe .MIWD00000PUS shed
0.05%, 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
69.63 points, or 0.25%, to 27,945.43. The S&P 500 .SPX lost
5.82 points, or 0.19%, to 3,140.09 and the Nasdaq Composite
.IXIC dropped 19.29 points, or 0.22%, to 8,637.24.
The dollar index .DXY , a measure of the greenback against
six other major trading currencies, fell. Against the Swiss franc, which tends to draw investors
during times of geopolitical or financial stress, the dollar was
0.21% lower.
The dollar index .DXY fell 0.05%, with the euro EUR= up
0.05% to $1.1063. The Japanese JPY= yen weakened 0.05% versus
the greenback at 108.65 per dollar.
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 4/32 in price to
yield 1.8294%.
German exports rose unexpectedly in October, a morale boost
for Europe's largest economy, but it had little impact on the
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 data. Brent futures LCOc1 fell 14 cents to settle at $64.25 a
barrel. West Texas Intermediate oil futures CLc1 slid 18 cents
to settle down at $59.02 a barrel.
U.S. gold futures GCcv1 settled mostly unchanged at
$1,464.90 an ounce.
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U.S.-China trade war timeline Image https://tmsnrt.rs/34N2vff
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