🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

GLOBAL MARKETS-Stocks rebound on China trade deal indication, bonds fall

Published 09/05/2019, 01:35 am
Updated 09/05/2019, 01:40 am
GLOBAL MARKETS-Stocks rebound on China trade deal indication, bonds fall
EUR/USD
-
USD/JPY
-
US500
-
DJI
-
JP225
-
DX
-
LCO
-
CL
-
IXIC
-
US10YT=X
-
MIAPJ0000PUS
-
MIWD00000PUS
-
DXY
-

(Adds U.S. market open, byline, dateline; previous LONDON)

* White House says China wants to make a trade deal

* U.S., European shares rebound on White House statement

* Bond prices fall, oil rallies on statement

By Herbert Lash

NEW YORK, May 8 (Reuters) - A gauge of world equity markets rose and safe-haven bond prices fell on Wednesday after the White House said it had received an indication from China that it wanted to make a trade deal with the United States that had appeared on the brink of unraveling.

Gold prices earlier hit their highest in more than three weeks as the trade row's potential impact on global growth curbed the appetite for risk. The dollar eased as investors raised expectations of a U.S. interest rate cut later this year.

The United States will raise tariffs to 25% from 10% on $200 billion worth of Chinese imports effective Friday, according to a notice posted to the Federal Register. House spokeswoman Sarah Sanders later said the United States has received an indication from China that Beijing wants to make a trade deal. delegations from Washington and Beijing are scheduled to begin their latest round of talks on Thursday.

Stocks on Wall Street rebounded as did major indices in Europe, while MSCI's gauge of equity performance in 47 countries .MIWD00000PUS turned higher, adding 0.11%.

Earlier in Asia, shares outside Japan .MIAPJ0000PUS closed 0.94% lower and Japan's Nikkei index .N225 lost 1.46%.

Two weeks ago the market had viewed resolution of the Sino-U.S. trade talks as a foregone conclusion and with it back on the table, volatility has picked up, said Yousef Abbasi, global market strategist at INTL FCStone Financial Inc in New York.

"People put on risk since late December and now they're having to grapple with uncertainty on a topic they were almost certain about two weeks ago," Abbasi said. "It puts you in a precarious position."

The Dow Jones Industrial Average .DJI rose 93.89 points, or 0.36%, to 26,058.98. The S&P 500 .SPX gained 9.73 points, or 0.34%, to 2,893.78 and the Nasdaq Composite .IXIC added 31.34 points, or 0.39%, to 7,995.09.

Bond prices fell on the White House announcement, with the benchmark 10-year U.S. Treasury note US10YT=RR falling 2/32 in price to push up its yield to 2.4548%.

The dollar remained lower. The dollar index .DXY fell 0.11%, with the euro EUR= up 0.13% to $1.1204.

The Japanese yen JPY= strengthened 0.11% versus the greenback at 110.15 per dollar.

Oil prices rallied.

U.S. crude CLcv1 rose 1.4% to $62.26 per barrel and Brent LCOcv1 was last at $70.51, up 0.9% on the day.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.