(Adds U.S. market open, changes byline, dateline; previous
LONDON)
* World stock markets retreat from highs
* Wall Street trades mixed
* Oil eases on trade deal doubts
By Herbert Lash
NEW YORK, Nov 8 (Reuters) - Oil prices fell and global
equity markets slid on Friday, halting a week-long rally on
hopes an end to the U.S.-China trade war was near, as investors
parsed statements from Beijing and Washington on where they
stand on rolling back tariffs.
Doubts arose about when a deal would be signed as fierce
opposition to rolling back existing tariffs surfaced from the
White House on Thursday, a position U.S. President Donald Trump
confirmed when talking to reporters on Friday.
Trump said he has not agreed to roll back tariffs on China
but that Beijing would like him to do so. The dollar rose to a three-week high, lifted by safe-haven
bids, as risk appetite for higher-yielding currencies took a
step back amid uncertainty about the tariff rollback, a major
component of a preliminary U.S.-China trade deal.
Skepticism abounds about the strength of the economy and
corporate results, which is driving fear of more weakness ahead,
said Christopher Smart, chief global strategist at Barings.
"I'm less convinced that we're headed for a durable trade
peace with China," he said.
"It's very difficult of course to forecast what this
administration will or will not agree to, but it's going to be
hard to keep the peace going into an election year," Smart
said.
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
0.19% and the pan-European STOXX 600 index .STOXX lost 0.27%.
Stocks on Wall Street were mixed as doubts about a trade
deal capped a record run for U.S. equities. The S&P 500 and Dow
Jones Industrial Average closed at all-time highs on Thursday,
while the Nasdaq just missed topping a record close set earlier
in the week.
The Dow .DJI fell 50.56 points, or 0.18%, to 27,624.24 and
the S&P 500 .SPX lost 1.87 points, or 0.06%, to 3,083.31. But
the Nasdaq Composite .IXIC added 11.19 points, or 0.13%, to
8,445.71.
Earlier in Asia, shares retreated from six-month highs
.MIAPJ0000PUS .
Investor sentiment is likely to remain supportive for risk
assets as efforts are made to reach a trade deal, said Brian
Daingerfield, head of G10 FX strategy at Natwest Markets in
Stamford, Connecticut.
"The fact that there is some discussion of moving existing
tariffs leans more positive," Daingerfield said.
The dollar index .DXY rose 0.19%, with the euro EUR=
down 0.26% to $1.102. The Japanese yen JPY= strengthened 0.13%
versus the greenback at 109.15 per dollar.
U.S. Treasury yields held just below three-month highs and
Germany's 10-year bond yield edged down from five-month highs.
The yield on benchmark 10-year German bunds DE10YT=RR was
one basis point lower at -0.26%.
Benchmark 10-year U.S. Treasury notes US10YT=RR rose 5/32
in price to push their yield down to 1.9069%.
Oil prices fell more than 1%.
Benchmark Brent crude LCOc1 fell 80 cents to $61.49 a
barrel while West Texas Intermediate (WTI) crude CLc1 fell 58
cents to $56.57 a barrel.
Gold prices fell and were on track for their biggest weekly
decline in almost three years.
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EXCLUSIVE-Rollback of China tariffs faces fierce opposition in
White House-sources ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>