* U.S. stocks end higher
* Bloomberg reports U.S. weighing delay imposing tariffs on
Mexico
* Mexican peso gets boost from report
(Updates with closing U.S. market levels)
By Caroline Valetkevitch
NEW YORK, June 6 (Reuters) - Major world stock indexes and
oil prices jumped on Thursday as investor optimism grew
following a report that the United States is considering a delay
in imposing tariffs on Mexican imports.
The Mexican peso also surged after the Bloomberg News
report, which cited unidentified sources saying that U.S.
President Donald Trump could put off implementing the tariffs he
has threatened to impose on Mexican goods as soon as Monday.
Adding to investor bullishness was a Washington Post report
on the outlines of an immigration deal being discussed by U.S.
and Mexican officials to thwart the threatened tariffs.
Quincy Krosby, chief market strategist at Prudential
Financial in Newark, New Jersey, said that while investors are
viewing the tariff delay news as a positive, they are likely to
remain guarded when it comes to trade-related news.
"When you have a fluid situation in terms of the tariffs, it
calls for caution and patience on the part of investors," she
said.
After the closing bell, a White House spokeswoman said the
Monday deadline for tariffs on Mexico has not changed, and U.S.
Vice President Mike Pence said Mexico has to take decisive
action on immigration to avoid tariffs. Earlier in the day, Trump said he would decide on whether to
levy more tariffs on China "probably right after the G20," which
is being held on June 28-29. That came after his overnight
threat to put tariffs on "at least" another $300 billion worth
of Chinese goods. On Wall Street, Thursday was the first time since mid-May
that the three major indexes gained ground for three sessions in
a row. Hopes of an interest rate cut from the Federal Reserve have
helped to support the market amid the trade tensions and mixed
economic data that has rekindled worries about the health of the
world's top economies.
Friday brings the closely watched monthly U.S. jobs report.
The Dow Jones Industrial Average .DJI rose 181.09 points,
or 0.71%, to 25,720.66, the S&P 500 .SPX gained 17.34 points,
or 0.61%, to 2,843.49, and the Nasdaq Composite .IXIC added
40.08 points, or 0.53%, to 7,615.55.
The pan-European STOXX 600 index .STOXX lost 0.02% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.33%.
Mexico's peso gained as much as 1.2% from where it was
trading before the Bloomberg report on the Mexico tariffs.
Earlier, it suffered a double whammy of trade woes with the
United States and a downgrade of the country's credit rating.
In late trading, the Mexican peso lost 0.57% versus the U.S.
dollar to 19.71.
The dollar index .DXY fell 0.28%, with the euro EUR= up
0.49% to $1.1274.
Oil prices jumped on the U.S.-Mexico trade report.
U.S. crude CLcv1 rose 2.73% to $53.09 per barrel.
U.S. YIELD CURVE FLATTENS
The U.S. Treasury yield curve flattened as the European
Central Bank committed to leaving interest rates alone into the
first half of 2020.
The gap between two-year and 10-year yields US2US10=TWEB
narrowed by 4.4 basis points to 23.30 basis point.
The ECB's move disappointed traders who had bet on a rate
cut, but most yields ended the day higher in the wake of the
Bloomberg report on tariffs.
In late U.S. trading, benchmark 10-year Treasury yields
US10YT=RR were up 0.80 basis point at 2.131%. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
GRAPHIC-Asia stock markets https://tmsnrt.rs/2zpUAr4
GRAPHIC-Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
GRAPHIC-MSCI All Country World Index Market Cap http://tmsnrt.rs/2EmTD6j
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>