GLOBAL MARKETS-U.S.-China trade truce pushes global stocks higher

By David Randall
NEW YORK, July 1 (Reuters) - Global stocks rallied and bonds
retreated on Monday as the United States and China agreed to
restart trade talks at the G20 summit over the weekend, leading
investors to bet that a breakthrough between the world's two
largest economies would jumpstart global economic growth.
The United States and China agreed on Saturday to resume
trade negotiations after U.S. President Donald Trump offered
concessions to his Chinese counterpart Xi Jinping when the two
met at the sidelines of the Group of 20 summit in Japan.
Those included no new tariffs and an easing of restrictions
on tech company Huawei HWT.UL . China agreed to make
unspecified new purchases of U.S. farm products and return to
the negotiating table. "It played out as well as possible," said Hans Peterson, SEB
Investment Management's global head of asset allocation. "It
gives us time to digest and get a bit better activity in the
global economy."
Broad gains in Europe and Japan and fresh record highs in
the U.S. market pushed MSCI's broadest global index
.MIWD00000PUS up 0.3%, adding to a rally that has been one of
the global stock market's best first halves to a year ever.
The benchmark S&P 500 index surpassed its previous
record high of 2,964.15, hit on June 21.
On Wall Street, the Dow Jones Industrial Average .DJI rose
178.83 points, or 0.67%, to 26,778.79, the S&P 500 .SPX gained
25.02 points, or 0.85%, to 2,966.78 and the Nasdaq Composite
.IXIC added 97.02 points, or 1.21%, to 8,103.26.
"Any step towards a trade resolution, and it doesn't have to
be a lot of progress - just a step, is viewed very positively by
markets," said Scott Brown, chief economist at Raymond James in
St. Petersburg, Florida. "And investors at this point are trying
to focus on the positive in hopes that there will be some trade
resolution down the line."
Chinese blue chips .CSI300 jumped 2.6% to their highest
since late April and Germany's export-heavy DAX .GDAXI gained
1.5% to its highest since August. The Huawei hiatus and M&A
activity pushed Europe's tech sector .SX8P to a one-year peak.
.EU
Fed funds 0#FF: dropped over five ticks as the market
scaled back the probability of a half-point interest rate cut
this month to around 15%, from nearer 50% a week ago. FEDWATCH
"I think the Fed expectations in the market are very
aggressive. Possibly a bit too aggressive," SEB's Peterson said.
In currency markets, safe havens like the yen and Swiss
franc gave up some recent gains. The dollar rose 0.4% on the yen
to 108.26 JPY= and 0.7% on the franc to 0.9830 CHF= . /FRX
The dollar added 0.4% on a basket of currencies to 96.531
.DXY . The dollar's gains hurt gold, which fell 1.5% to $1,388
per ounce XAU=
Oil prices rose as OPEC and its allies looked set to extend
supply cuts at least until the end of 2019. Iraq joined top
producers Saudi Arabia and Russia in endorsing the policy.
O/R
Brent crude LCOc1 futures rose $1.55, or 2.4%, to $66.31 a
barrel. U.S. crude CLc1 gained $1.35, or 2.3%, to $59.82.

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Global assets in 2019 http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Global bonds dashboard (DO NOT USE UNTIL UPDATE FOUND) http://tmsnrt.rs/2fPTds0
Emerging markets in 2019 http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
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