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GLOBAL MARKETS-European shares rise on delayed Brexit vote, dollar gains; Wall St flat

Published 15/03/2019, 06:06 am
GLOBAL MARKETS-European shares rise on delayed Brexit vote, dollar gains; Wall St flat
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(Adds gold, oil settlement prices)

* European stocks hit highest since Oct. 5

* Wall Street trades flat on report of Xi-Trump summit delay

* Pound eases after best 1-day percentage gain since April 2017

* Oil hits 4-month highs on supply, renewed OPEC call for cuts

By Herbert Lash

NEW YORK, March 14 (Reuters) - A gauge of global equity markets traded little changed on Thursday as European shares rose ahead of new voting that backed a Brexit delay and bolstered the dollar, while Wall Street meandered on uncertainty over U.S.-China trade talks.

The dollar gained for the first time in a week as the pound fell even after Parliament voted overwhelmingly to seek a delay to the March 29 deadline for Britain to exit the European Union. also voted against a second referendum on EU membership as the delay vote set the stage for Prime Minister Theresa May to renew efforts to get a divorce deal approved by Parliament next week.

Sterling GBP= fell 0.72 percent to $1.3241 after gaining almost 2 percent late on Wednesday on a vote to defeat a "no-deal" Brexit.

European shares rose to a five-month high as sentiment improved from cautious to upbeat after the open. But a Bloomberg report of a likely delay in U.S.-China trade talks, coupled with fresh data showing weak U.S. home sales, hurt U.S. stocks.

Data showing China's industrial output grew 5.3 percent in January and February, the slowest pace of expansion in 17 years, is also a concern and an important focus, said Kristina Hooper, chief global market strategist at Invesco.

While fiscal and monetary stimulus will improve China's economy down the road, fear of U.S.-China trade wars and economic slowdown are driving market sentiment for the moment.

"In general, what we have is a picture that doesn't look particularly positive," Hooper said.

MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.06 percent while the FTSEurofirst 300 index .FTEU3 of leading European shares closed up 0.77 percent.

On Wall Street, The Dow Jones Industrial Average .DJI rose 11.23 points, or 0.04 percent, to 25,714.12. The S&P 500 .SPX lost 1.66 points, or 0.06 percent, to 2,809.26 and the Nasdaq Composite .IXIC dropped 6.70 points, or 0.09 percent, to 7,636.71.

The dollar index, a gauge of its strength against six other major trading currencies, rose 0.23 percent at 96.774 .DXY after brushing a nine-day trough overnight of 96.385.

The euro EUR= fell 0.22 percent to $1.13, while the Japanese yen JPY= weakened 0.49 percent versus the greenback at 111.73 per dollar.

U.S. Treasury yields were little changed to slightly higher on concerns about the report of the delay in a planned meeting between U.S. President Donald Trump and Chinese President Xi Jinping. you look at Trump and Xi, it's clear that both parties want to make a trade deal here," said Brian Giuliano, vice president, portfolio management, at Brandywine Global Investment Management in Philadelphia.

"But market sentiment has shifted on trade."

Oil prices were mixed, lifted by solid demand and output cuts led by the Organization of the Petroleum Exporting Countries, though gains were capped by an ongoing surge in U.S. supply while analysts warned of risks to the global economy.

U.S. West Texas Intermediate (WTI) crude oil futures CLc1 rose 35 cents to settle at $58.61 per barrel, but Brent crude futures LCOc1 settled down 32 cents at $67.23 per barrel.

Gold slipped below $1,300 for a second time this month as the dollar gained and British lawmakers approved a Brexit delay.

U.S. gold futures GCv1 settled 1.1 percent lower to $1,295.1 an ounce.

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