GLOBAL MARKETS-Stocks rise as U.S.-China phone calls boosts optimism, euro gains

(Adds oil, gold settlement prices)
* Apple shares, poor consumer confidence weigh on Wall
Street
* Oil prices rise on storm-driven output cuts
* German consumer confidence data boosts euro

By Herbert Lash
NEW YORK, Aug 25 (Reuters) - The euro rose on
better-than-expected German business morale data on Tuesday
while global equity markets gained, with the S&P 500 and Nasdaq
poised to set new closing highs, as a phone call between U.S.
and Chinese trade officials fueled optimism.
Gold prices fell as the positive signals on the U.S.-China
trade front bolstered risk sentiment and offset support for the
metal from a weaker dollar.
Top U.S. and Chinese trade officials reaffirmed their
commitment to a trade deal that had appeared on shaky ground
because of worsening bilateral ties. Trading volume was low - typical for a late August session -
but also as investors awaited a speech by Federal Reserve
Chairman Jay Powell on Thursday, when he is expected to address
the U.S. central bank's view on inflation and monetary policy.
A lack of news or single-stock catalyst to drive markets
kept the session quiet, said Yousef Abbasi, global market
strategist at StoneX Group Inc in New York.
"The market's on cruise control until Thursday morning when
Fed Chairman Powell is expected to outline the new monetary
policy and maybe forward guidance framework," he said.
A survey from the Conference Board showed U.S. consumer
confidence unexpectedly fell in August to hit a six-year low.

Stocks in Europe retreated to close lower, while Wall Street
meandered but was higher in afternoon trading. The S&P 500 set a
new intra-day high early in the session, and after trading
lower, was poised to close - along with the Nasdaq - at a new
high.
Europe's broad FTSEurofirst 300 index .FTEU3 dropped 0.32%
to 1,434.94, while MSCI's benchmark for global equity markets
.MIWD00000PUS rose 0.29% to 578.94.
Wall Street was mixed. The Dow Jones Industrial Average
.DJI fell 0.31%, the S&P 500 .SPX gained 0.28% and the
Nasdaq Composite .IXIC added 0.66%.
The S&P 500 and the Nasdaq logged closing highs on Monday,
boosted by signs of progress in developing treatments and
vaccines for COVID-19.
A 1.63% slide in Apple Inc. AAPL.O , whose market
capitalization of $2.15 trillion is greater than all the
components in the benchmark FTSE 100 .FTSE index in London,
initially kept stocks from rising.
German business morale improved more than expected in August
as both manufacturing and services picked up steam, a survey by
the Ifo institute showed. The survey raised hopes for a strong
recovering from the coronavirus in Europe's largest economy.
The dollar index =USD fell 0.288%, with the euro EUR= up
0.39% to $1.1833.
Investors are waiting to hear Federal Reserve Chairman
Jerome Powell's speech on Thursday about the U.S. central bank's
policy framework review during the Jackson Hole symposium.
A major focus for investors will be whether Powell signals
that the Fed will shift its inflation target to an average. This
would allow inflation to rise more quickly than in the past.
Longer-term U.S. Treasury yields rose as traders moved into
riskier asset classes on reassurance that a U.S.-China trade
deal would continue. The yield on the benchmark 10-year Treasury
note US10YT=RR rose 6.4 basis points to 0.7096%.
Euro zone government bond yields rose on the Ifo survey.
Germany's 10-year bond yields DE10YT=RR , a benchmark for
the region, rose 5 basis points to a one-week high of -0.445%.
Crude oil prices rose, supported by production cuts in the
U.S. Gulf Coast as Tropical Storm Laura was forecast to become a
major hurricane, while rising coronavirus cases in Asia and
Europe capped gains.
Brent crude futures LCOc1 settled up 73 cents at $45.86 a
barrel. U.S. crude futures CLc1 rose 73 cents to settle at
$43.35 a barrel.
U.S. gold futures GCv1 settled down 0.8% at 1,923.10 an
ounce.


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