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GLOBAL MARKETS-Stocks, dollar rise as Trump says trade deal is near

Published 13/11/2019, 07:53 am
© Reuters.  GLOBAL MARKETS-Stocks, dollar rise as Trump says trade deal is near
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(Adds gold, oil settlement prices)

* Trump said trade deal with China is "close"

* Oil slips at end of session

* Dollar lifted by cautious optimism

By Herbert Lash

NEW YORK, Nov 12 (Reuters) - Global equity markets and the dollar rose on Tuesday as U.S. President Donald Trump reiterated the United States is close to signing a trade deal with China but offered no new details.

Markets had been on edge about Trump's highly anticipated remarks to The Economic Club of New York, but barely moved after the speech, which contained no major policy announcements. touted his administration's economic record in a campaign-style speech but did not announce a venue or date for signing a trade deal with Chinese President Xi Jinping as rumors had suggested he might.

Rising technology shares helped Wall Street hit record highs while European shares edged back toward four-year highs .EU . MSCI's gauge of worldwide equity performance .MIWD00000PUS climbed to almost 1% shy of a record peak set in January 2018, before paring gains.

Trade-sensitive chipmakers helped pushed Europe's STOXX 600 up 0.38% as the Philadelphia semiconductor index .SOX rose almost 1% but then pared gains on to trade 0.06% higher.

Overnight in Asia, MSCI's broadest measure of Asia-Pacific shares outside Japan .MIAPJ0000PUS climbed 0.5% while Japan's Nikkei .N225 ended 0.8% higher.

Greg Anderson, global head of foreign exchange strategy at BMO Capital Markets, said nothing new was announced in Trump's speech.

"The only thing that's maybe new is that he did not announce a date and a time for a signing ceremony. Where markets had been hoping for that, those hopes were dashed," Anderson said.

Markets have been focused on a U.S.-China trade deal but improving economic data has provided upside too, said Candice Bangsund, a global asset allocation strategist at Fiera Capital in Montreal.

"There's been so much pessimism on the state of the global economy that earnings or fundamentals matter very little when it comes to equity gains this year," Bangsund said.

"Going forward, we expect that fundamentals should prevail. That's going to drive the next up leg."

MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.12%. In Europe, the FTSEurofirst 3000 index .FTEU3 of leading regional shares closed up 0.42%.

The Dow Jones Industrial Average .DJI fell 13.69 points, or 0.05%, to 27,677.8. The S&P 500 .SPX gained 2.63 points, or 0.09%, to 3,089.64 and the Nasdaq Composite .IXIC added 13.47 points, or 0.16%, to 8,477.75.

Investors were also anxious about Hong Kong after a violent escalation of protests knocked 3% off the key Hang Seng index .HSI and nearly 2% off Asia-exposed banks HSBC HSBA.L and StanChart STAN.L in recent days.

Hong Kong's embattled leader Carrie Lam on Tuesday said protesters who were trying to "paralyze" the city were extremely selfish and hoped all universities and schools would urge students not to participate in violence.

U.S. Treasury yields held below three-month highs after Trump's speech.

A holiday in the United States had closed the Treasury market on Monday but there was an early milestone on Tuesday as the gap between short-term 3-month and longer-term 10-year yields hit the widest level of the year so far.

That steepening of the yield curve adds to signs that fears of recession were receding.

"Recession fears are misplaced. We are not ripe for an extended bear market," Bangsund said.

Treasury yields on 10-year notes US10YT=RR fell to 1.9173%. European yields were a touch higher.

The dollar was little changed after Trump spoke, remaining mostly higher on the day.

The dollar index .DXY rose 0.14%, with the euro EUR= down 0.24% to $1.1006. The Japanese yen JPY= strengthened 0.05% versus the greenback at 109.01 per dollar.

Gold slipped to its lowest in more than three months on increased appetite for riskier assets.

U.S. gold futures GCcv1 settled down 0.2% at $1,453.70 per ounce.

U.S. crude CLc1 fell 6 cents to settle down $56.80 a barrel, while Brent crude LCOc1 futures fell 12 cents to settle at $62.06.

https://tmsnrt.rs/2zpUAr4 Asia-Pacific valuations

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