(Adds U.S. market open, byline, dateline; previous LONDON)
* U.S.' Ross says preliminary trade deal may be signed this
month
* MSCI world equity index up 0.57% to highest since January
2018
* Oil prices creep higher on trade hopes and OPEC talks
By Herbert Lash
NEW YORK, Nov 4 (Reuters) - The dollar strengthened and
global stock markets rallied on Monday on signs the United
States and China could soon end a damaging trade war as well as
indications the world may yet dodge an economic recession.
The three major U.S. stock indexes set record intraday highs
and MSCI's gauge of equity performance across the globe rose to
less than 2% from an all-time peak set in January 2018.
Beijing and Washington spoke Friday of progress in the trade
talks and U.S. Commerce Secretary Wilbur Ross said on Sunday
licenses for U.S. companies to sell components to China's Huawei
Technologies Co will come "very shortly." Gold edged lower while the dollar gained on higher risk
appetite due to trade hopes, which were bolstered after Ross
said there was no reason a trade deal could not be on track to
be signed this month.
A generally upbeat U.S. employment report on Friday also
added to optimism the U.S. economy, while slowing, was not
headed toward a recession.
"Market trends are being influenced by a better risk mood
overall," said Shaun Osborne, chief FX strategist at Scotiabank
in Toronto.
European shares rallied more than 1%, reaching their highest
level since January 2018. The STOXX 600 index .STOXX of small,
mid-sized and large companies across Europe surged to highs last
seen in July 2015.
Tariff-exposed European miners .SXPP gained 3.3% while
auto stocks .SXAP rose 2.9%. The rally was also led by reports
Fiat Chrysler FCHA.MI and Peugeot owner PSA PEUP.PA aimed to
sign a final merger agreement as early as next month.
Earlier, the positive mood on trade had sent Asian stocks
surging, with MSCI's broadest index of Asia-Pacific shares
outside Japan .MIAPJ0000PUS up 1.2%.
Technology stocks pushed Wall Street to fresh record highs
as the Philadelphia Semiconductor index .SOX hit a new high,
up 1.7%.
MSCI's gauge of stocks across the globe .MIWD00000PUS
gained 0.59% while its emerging markets rose 1.44%.
"Signing these deals take time. All that is needed for
markets to be happy right now is for an agreement to be
announced," said Rick Meckler, partner at Cherry Lane
Investments in New Vernon, New Jersey.
On Wall Street, the Dow Jones Industrial Average .DJI rose
144.86 points, or 0.53%, to 27,492.22. The S&P 500 .SPX gained
15.03 points, or 0.49%, to 3,081.94 and the Nasdaq Composite
.IXIC added 45.50 points, or 0.54%, to 8,431.90.
The euro slipped as investors awaited Christine Lagarde's
first speech as European Central Bank president. But the single
currency remained near its highest levels in weeks after Ross
said in the interview that Washington may not slap tariffs on
imported vehicles after "good conversations" with automakers in
the European Union, Japan and Korea.
The dollar index .DXY rose 0.18%, with the euro EUR=
down 0.19% to $1.1144. The Japanese yen JPY= weakened 0.36%
versus the greenback at 108.58 per dollar.
Euro zone and U.S. bond yields rose on optimism a U.S.-China
trade deal appeared near.
Data on Monday showed morale among investors in the euro
zone jumped in November to its highest level since June.
Germany's benchmark 10-year Bund yield was at -0.35%
DE10YT=RR while the benchmark 10-year U.S. Treasury note
US10YT=RR fell 18/32 in price to push its yield up to 1.7893%.
Oil prices crept up, with Brent reaching its highest in more
than a month on growing expectations of a U.S.-China trade deal
and Iran flagging OPEC discussions over a deeper output cut next
month.
Brent crude futures for January LCOc1 rose $1.04 to $62.73
a barrel. December U.S. crude futures CLc1 also swung back
into positive territory, up 95 cents at $57.15 a barrel.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
China's yuan strengthens https://tmsnrt.rs/2qitOPn
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>