(Adds U.S. market open, byline, dateline; previous LONDON)
* MSCI world, Wall Street indexes post fresh records
* Oil slips on doubts trade pact to spur global growth
* Dollar weakens, gold edges higher
By Herbert Lash
NEW YORK, Jan 15 (Reuters) - Key world stock market indexes
climbed to new records on Wednesday on hopes a U.S.-China trade
deal will reduce tensions, but oil prices slid on doubts the
pact will spur world growth and boost crude demand.
U.S. President Donald Trump and Chinese Vice Premier Liu He
will sign a Phase 1 deal that will roll back some tariffs and
see China boost purchases of U.S. goods and services, defusing
an 18-month conflict between the world's two largest economies.
Liu said the two sides would work more closely together to
obtain tangible results and achieve a win-win relationship
despite differences in their political and economic models,
China's official Xinhua news agency reported.
MSCI's all-world stock index set a record intraday high, as
did the benchmark S&P 500 index, the Dow industrials and Nasdaq
on Wall Street.
The deal is unlikely to significantly change the growth
outlook, but it should allow companies to make the capital
investments they haven't, which is positive, said Marvin Loh,
senior global macro strategist at State Street Global Markets.
"What's most important to investors is a potential
de-escalation and signs that de-escalation will continue this
year, which is the outlook period for a lot of investors," he
said.
"If we can somehow take this out as one of the bigger risks
that we had all last year, it does give some confidence to the
market. Not necessarily from an economic but from a risk
parameter perspective," Loh said.
MSCI's gauge of stocks across the globe .MIWD00000PUS
gained 0.19% but the pan-European STOXX 600 index .STOXX lost
0.08%.
On Wall Street, the Dow Jones Industrial Average .DJI rose
148.3 points, or 0.51%, to 29,087.97. The S&P 500 .SPX gained
12.62 points, or 0.38%, to 3,295.77 and the Nasdaq Composite
.IXIC added 35.70 points, or 0.39%, to 9,287.03.
Emerging market stocks lost 0.48%.
Oil prices slipped on concerns the Phase 1 trade agreement
may not provide much of a demand boost because the United States
intends to keep tariffs on Chinese goods until a Phase 2 deal is
reached.
Prices were also under pressure from a report by the
Organization of Petroleum Exporting Countries. The report said
OPEC expects lower demand for its oil in 2020 even as global
demand rises, as rival producers grab market share and the
United States looks set for another output record. crude LCOc1 fell 64 cents to $63.85 a barrel. U.S.
West Texas Intermediate crude futures CLc1 were down 61 cents
at $57.62 a barrel.
The U.S. dollar dipped against the euro and the yen ahead of
the signing of the trade deal at the White House.
The United States will maintain tariffs on Chinese goods
until the completion of a second phase of a trade agreement,
U.S. Treasury Secretary Steven Mnuchin said on Tuesday.
The dollar index .DXY , tracking the unit against six major
peers, fell 0.17%, with the euro EUR= up 0.27% to $1.1157. The
Japanese yen JPY= strengthened 0.01% versus the greenback at
109.99 per dollar.
U.S. Treasury yields declined as investors repositioned
around new data showing producer prices barely rose in December.
Benchmark 10-year notes US10YT=RR last rose 8/32 in price
to yield 1.7899%.
U.S. producer prices edged up in December as a rise in the
cost of goods was offset by weakness in services, the latest
indication of tame inflation pressures that could allow the
Federal Reserve to stand pat on interest rates this year.
The Labor Department said its producer price index for final
demand ticked up 0.1% last month after being unchanged in
November. In the 12 months through December, the PPI increased
1.3%, after gaining 1.1% in November.
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S&P 500 earnings by quarter since 2015 png https://tmsnrt.rs/2FxwJrx
Top U.S. exports to China, 2017 png https://tmsnrt.rs/2tYpR43
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