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GLOBAL MARKETS-Risk rally pauses on U.S. data, trade talk caution

Published 07/11/2019, 03:34 am
Updated 07/11/2019, 03:36 am
© Reuters.  GLOBAL MARKETS-Risk rally pauses on U.S. data, trade talk caution
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(Adds U.S. market open, byline, dateline; previous LONDON)

* Dollar, Wall Sreet slip after U.S. productivity data

* Bond sell-off pauses for further developments

* Oil prices fall on rising crude stockpiles

By Herbert Lash

NEW YORK, Nov 6 (Reuters) - The dollar slid and the three-day global stock market rally paused on Wednesday as U.S. productivity data disappointed and investors turned a bit cautious about U.S.-China trade talks.

MSCI's All Country World Index .MIWD00000PUS , a gauge of equity performance in 47 countries, was marginally higher at 0.02% after rallying 1.3% since Friday.

Stocks on Wall Street slid and benchmark U.S. Treasury prices gained following a three-day sell-off. U.S. Government data showed American workers were unexpectedly less productive during the third quarter.

Equity markets have rallied on a reduced recession outlook and optimism a "phase one" U.S.-China trade deal can be reached this month and as global business surveys indicate tariff-hit manufacturing sentiment has troughed.

France's benchmark 10-year bond yield turned positive for the first time since July, a further sign that pessimism is abating in world bond markets. EUR/GVD

Investors said lingering concerns about the U.S.-China trade talks had stock markets consolidating gains made over the last three sessions.

"What you saw over the last two days is a bit of confusion on the China phase one deal ... and that started affecting risk appetite," said Juan Perez, a senior currency trader at Tempus Inc in Washington.

Traders and investors hope a preliminary deal will roll back at least some of the punitive tariffs Washington and Beijing have imposed on each other's goods, but it remained uncertain when or where U.S. President Donald Trump will meet Chinese President Xi Jinping to sign the agreement. stocks edged higher, boosted by gains in financial stocks as investors assessed a mixed bag of earnings reports.

The pan-European STOXX 600 index .STOXX was higher by 0.12%. .EU Britain's FTSE 100 .FTSE index was flat, while Germany's DAX .GDAXI and France's CAC 40 .FCHI were up 0.15% and 0.25%, respectively. each.

On Wall Street, the Dow Jones Industrial Average .DJI fell 11.1 points, or 0.04%, to 27,481.53. The S&P 500 .SPX lost 1.05 points, or 0.03%, to 3,073.57 and the Nasdaq Composite .IXIC dropped 32.93 points, or 0.39%, to 8,401.75.

The U.S. Labor Department said nonfarm productivity, which measures hourly output per worker, fell at a 0.3% annualized rate in the third quarter, the biggest decline in almost four years. in Europe showed signs of economic improvement.

German industrial orders rose more than expected in September, offering some hope for manufacturers in Europe's biggest economy after a tough spell. zone business activity expanded slightly faster than expected last month but remained close to stagnation, according to a survey. currencies, the dollar index .DXY fell 0.08%, with the euro EUR= down 0.01% to $1.1073. The Japanese yen EUR= strengthened 0.13% versus the greenback at 109.02 per dollar.

Oil prices fell,, reversing some gains of the previous three sessions, after a surprisingly large build in U.S. crude inventories and weak euro zone economic figures.

Brent crude LCOc1 was down 14 cents at $62.82 a barrel. West Texas Intermediate crude CLc1 was down 13 cents at $57.10.

Benchmark 10-year U.S. Treasury notes US10YT=RR rose 10/32 in price to push their yield down to 1.8318%.

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