* Pound up 1.9% vs USD; largest daily gain since March
* Oil prices rise as OPEC pledges decision on supply
* Copper jumps over 1.5%, gold slides
(Updates to close, adds Trump comments after market close)
By Rodrigo Campos
NEW YORK, Oct 10 (Reuters) - Stocks rose on Thursday after
U.S. President Donald Trump said he would meet with China's top
trade negotiator on Friday, while the British pound rallied
after the prime ministers of Britain and Ireland revived hopes
of a possible Brexit deal.
A drop in the U.S. currency, also tied to trade talks,
supported dollar-denominated commodity prices, including oil,
which rose after OPEC pledged to make a decision on supply in
December.
Markets were expected to remain highly volatile as
high-level U.S.-China trade negotiations were due to continue
through Friday. Trump's comments after the close on Wall Street,
calling negotiations "very, very good," sent S&P 500 futures
higher. The euro hit its highest since Sept. 20 versus the dollar as
the greenback turned weaker across the board .DXY , partly due
to a Bloomberg report about a U.S.-China currency pact to stop
the yuan's devaluation. China's offshore yuan hit its strongest
levels in more than two weeks.
Sterling jumped just shy of 2%, on track for its largest
gain against the dollar in seven months, after Irish Prime
Minister Leo Varadkar said a Brexit deal could be clinched by
the end of October after what he called a very positive meeting
with Boris Johnson. The risk-on environment weighed on the greenback, and even
harder on Japan's yen.
"With a Brexit deal looking more likely and U.S.-China talks
showing more progress, it's just clear that the dollar is losing
some safe-haven demand," said Juan Perez, senior currency trader
at Tempus Inc in Washington.
The dollar index .DXY fell 0.4%, with the euro EUR=
unchanged at $1.1004.
Sterling GBP= settled at $1.2440, up 1.9% on the day. The
safe-haven yen suffered through a risk-on session and dropped
0.46% to the greenback at 107.96 per dollar.
TRADE THE TWEETS
Trump's tweet announcing his Friday meeting with Liu gave
"market participants a reason to believe that perhaps a trade
deal or at least a partial trade deal might be announced as
early as tomorrow," said Robert Pavlik chief investment
strategist at SlateStone Wealth LLC in New York.
Separately, Chinese state news agency Xinhua reported Liu
said Beijing was willing to reach an agreement with Washington
to prevent any further escalation of the trade war. The Dow Jones Industrial Average .DJI rose 150.66 points,
or 0.57%, to 26,496.67, the S&P 500 .SPX gained 18.73 points,
or 0.64%, to 2,938.13 and the Nasdaq Composite .IXIC added
47.04 points, or 0.6%, to 7,950.78.
The pan-European STOXX600 index .STOXX rose 0.65% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.56%.
Emerging market stocks rose 0.35%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.17%
higher, while Nikkei futures NKc1 rose 0.74%.
Treasury yields also rose on hopes of a trade resolution
between the United States and China. However, some investors
highlighted the difficulty of using the rapidly shifting
headlines on trade to direct investment strategy.
"A choppy overnight session driven by conflicting signals
regarding trade negotiations highlights the difficulty in
chasing every 5 basis point move in yields, in that the
proximate justification can unwind just as quickly," said Ian
Lyngen, head of U.S. rates strategy at BMO Capital Markets.
Benchmark 10-year notes US10YT=RR last fell 24/32 in price
to yield 1.6698%, from 1.587% late on Wednesday.
The two-year note
Safe-haven gold fell; spot gold XAU dropped 0.8% to
$1,493.85 an ounce.
Copper CMCU3 posted its largest daily gain in a month, up
1.70% to $5,780.50 a tonne.
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Global assets in 2019 http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets in 2019 http://tmsnrt.rs/2ihRugV
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