(Updates to close of U.S. markets)
* Comments on tariff rollbacks clip hopes for trade deal
* Wall St rises as investors throw off trade deal pessimism
* All three major Wall St indexes hit record closing highs
* Oil falters on trade deal doubts
By Herbert Lash
NEW YORK, Nov 8 (Reuters) - Oil prices faltered and global
equity markets slipped on Friday, halting a week-long
record-setting rally fueled on hopes a U.S.-China trade deal was
near, as the latest statements out of Washington cast fresh
doubts about progress between Beijing and Washington.
Optimism about a deal earlier in the week darkened after
fierce opposition from the White House to rolling back existing
tariffs surfaced on Thursday and after U.S. President Donald
Trump reinforced that sentiment on Friday.
Trump told reporters he has not agreed to the rollback of
tariffs sought by China and that Beijing wanted to make a deal
more than he did. But by the close of Wall Street, optimism returned to the
market as investors bet the White House needs a deal and it is
in the interests of China, too. All three major U.S. indexes
eked out record closing highs.
"The feeling now is that before the end of the year we're
going to see some type of deal," even if it is partial, said
Tim Ghriskey, chief investment strategist at Inverness Counsel
in New York, said.
MSCI's gauge of stocks across the globe .MIWD00000PUS
pared losses to close little changed, down 0.03% on the day and
just 1.3% from then all-time high set in January 2018.
The dollar rose to a three-week high, lifted by safe-haven
bids, as risk appetite for higher-yielding currencies was
curtailed by the uncertainty over the tariff rollback, a major
component of a preliminary U.S.-China trade deal.
Optimism around a deal has run into skepticism 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.
"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. "People are still pretty pessimistic."
The pan-European STOXX 600 index .STOXX closed down 0.28%,
snapping a five-day winning streak, while Germany's
trade-sensitive DAX index .GDAXI fell 0.46%.
The record closing high by the S&P 500 was the fourth in six
sessions as U.S. stocks rallied on hopes of a trade deal.
The Dow Jones Industrial Average .DJI rose 6.44 points, or
0.02%, to 27,681.24. The S&P 500 .SPX gained 7.9 points, or
0.26%, to 3,093.08 and the Nasdaq Composite .IXIC added 40.80
points, or 0.48%, to 8,475.31.
Earlier in Asia, shares retreated from six-month highs
.MIAPJ0000PUS .
Investor sentiment is likely to continue to support 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."
The dollar index .DXY rose 0.23%, with the euro EUR=
down 0.27% to $1.1019. The Japanese yen JPY= strengthened
0.08% versus the greenback at 109.22 per dollar.
U.S. Treasury yields traded mostly below three-month highs
while Germany's 10-year bond yield slid 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 fell 5/32
in price to push their yield up to 1.9399%.
Gold extended losses to a three-month low and was on track
for the biggest weekly decline in almost three years. U.S. gold
futures GCcv1 settled down 0.2% at $1,462.90.
Oil prices pared losses after earlier falling more than 1%
following Trump's comments.
Benchmark Brent crude LCOc1 fell 80 cents to $61.49 a
barrel while West Texas Intermediate (WTI) crude CLc1 rose 9
cents to settle at $57.24 a barrel.
"Given the volatility around the U.S.-China trade saga, it's
hard to be short over the weekend," said John Kilduff, a partner
at Again Capital LLC. "The turn of a phrase could restore the
very hopes that were dashed just last night over a deal being
struck."
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EXCLUSIVE-Rollback of China tariffs faces fierce opposition in
White House-sources ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>