Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

GLOBAL MARKETS-Stocks rise on U.S.-China trade hopes; investors eye Fed speech

Published 29/11/2018, 03:32 am
© Reuters.  GLOBAL MARKETS-Stocks rise on U.S.-China trade hopes; investors eye Fed speech
EUR/USD
-
US500
-
DJI
-
DX
-
LCO
-
IXIC
-
US10YT=X
-
US30YT=X
-
STOXX
-
MIWD00000PUS
-
DXY
-
SPLRCI
-

* Wall St gains on hopes of trade truce, Powell's speech in focus

* Dollar steady before Powell speech

* China, U.S. could reach trade deal - Trump adviser Kudlow

* But tariff fears subdue European markets, especially autos (Adds more details, background)

By Laila Kearney

NEW YORK, Nov 28 (Reuters) - Rising hopes that the United States and China could call a trade war ceasefire at the upcoming G20 summit boosted global stocks on Wednesday, but gains were held in check as investors looked ahead to a speech by Federal Reserve Chairman Jerome Powell.

Meanwhile, safe-haven assets came under pressure with the gain in equities, and sterling rose before the Bank of England released its Brexit analysis.

Despite U.S. President Donald Trump's tough remarks on the trade dispute ahead of Saturday's meeting with Chinese President Xi Jinping, markets focused on comments by White House economic adviser Larry Kudlow, who indicated the two countries could call a truce. hint that the China-U.S. trade dispute could be resolved could make a pick-up in global growth," said Kim Forrest, senior portfolio manager at Fort Pitt Capital Group in Pittsburgh. Street opened higher on hopes for a thaw in U.S.-China relations, with industrial stocks .SPLRCI , which have borne the brunt of the protracted trade war, becoming one of the biggest gainers.

The Dow Jones Industrial Average .DJI rose 197.19 points, or 0.8 percent, to 24,945.92, the S&P 500 .SPX gained 6.49 points, or 0.24 percent, to 2,688.66 and the Nasdaq Composite .IXIC added 15.35 points, or 0.22 percent, to 7,098.05.

The pan-European STOXX 600 index .STOXX rose 0.04 percent and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.08 percent.

Still, lingering caution that the two sides would leave the summit without an agreement capped gains, especially in Europe, which was hit on Tuesday by a report that Trump may soon decide about new taxes on imported cars.

"If they come out with nothing this weekend, it's going to be very bad," said Bernd Berg, global macro strategist at Swiss-based Woodman Asset Management.

A rapprochement is seen as crucial, given that world growth and trade are already showing signs of an alarming slowdown.

Investors were also eyeing a speech by Federal Reserve Chairman Jerome Powell for insight into the path of interest rate hikes.

Powell's speech at 12 p.m. EST (1700 GMT) will be evaluated for any new indications of caution as global growth slows and as the U.S. central bank comes under renewed criticism from Trump for raising interest rates.

Uncertainty over global trade as well as Brexit and Italy's conflict with the European Union, have supported the U.S. dollar, which hit a two-week high against a basket of currencies.

The dollar steadied ahead of Powell's speech, with the dollar index .DXY rising 0.1 percent.

The euro EUR= was down 0.05 percent to $1.1282.

Sterling, meanwhile, gained as investors positioned themselves before the Bank of England's analysis of Britain's exit from the European Union. government bond yields were up modestly as traders held back from making big moves before the Fed chairman's speech.

Yields at the short end of the curve were up between 1 and 2 basis points, with the 10-year note yield US10YT=RR up 1.3 basis points, and the 30-year yield US30YT=RR up about a point. oil futures fell as Saudi Arabia dampened expectations of production cuts by the OPEC producer club and inventories of crude remain high World Trade Organization (WTO) outlook

https://tmsnrt.rs/2RlhEOc Brent crude oil price slumps of 2008, 2014/2015 & 2018 in percent

https://tmsnrt.rs/2RiWkJ1 GRAPHIC-Global assets in 2018

http://tmsnrt.rs/2jvdmXl GRAPHIC-World FX rates in 2018

http://tmsnrt.rs/2egbfVh GRAPHIC-Emerging markets in 2018

http://tmsnrt.rs/2ihRugV GRAPHIC-MSCI All Country World Index Market Cap

http://tmsnrt.rs/2EmTD6j GRAPHIC-The rolling bear market

https://tmsnrt.rs/2QCzyvm

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

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.