By April Joyner
NEW YORK (Reuters) - A global gauge of equities edged higher on Monday and the dollar rebounded after U.S. President Donald Trump said Chinese officials had contacted Washington about resuming trade negotiations, restoring some equilibrium following signs of escalation in the U.S.-China trade dispute that had roiled markets earlier in the day.
Trump's comments after the G7 summit of world leaders in France followed Chinese Vice Premier Liu He's remarks that China was willing to resolve the trade dispute through "calm" negotiations. Beijing, however, declined to confirm that Chinese officials had contacted their U.S. trade counterparts.
U.S. stocks rose upon the easing of rhetoric between Washington and Beijing, while European stocks bounced off their lows.
"The sentiment today is conciliatory. The president is trying to walk back," said Art Hogan, chief market strategist at National Securities in New York.
"Whether or not he has a phone call with China doesn't matter," Hogan added. "The point is that he is attempting to keep the September meeting scheduled and get back to the negotiating bit."
The dollar index <.DXY> also reversed course to trade higher, last rising 0.4%. The Chinese yuan, which had fallen to an 11-year low in the onshore market and hit a record low in the offshore market, pared losses. In the offshore market, the Chinese yuan
Asian equity markets had plummeted and European stocks had appeared set to follow suit after China and the United States announced further tariffs on each other's exports on Friday. Trump announced an additional duty on some $550 billion of targeted Chinese goods, following the U.S. market close, hours after China unveiled retaliatory tariffs on $75 billion worth of U.S. goods.
Another development at the G7 summit pressured oil prices, as French President Emmanuel Macron said preparations were under way for a meeting between Iranian President Hassan Rouhani and Trump in the coming weeks to find a solution to their nuclear standoff. The prospect of a deal between Washington and Tehran bolstered the outlook for increased supply of Iranian crude.
On Wall Street, the Dow Jones Industrial Average <.DJI> rose 211.74 points, or 0.83%, to 25,840.64, the S&P 500 <.SPX> gained 24.13 points, or 0.85%, to 2,871.24 and the Nasdaq Composite <.IXIC> added 82.22 points, or 1.06%, to 7,833.98.
The MSCI All-Country World Index <.MIWD00000PUS> gained 0.14%.
Despite the rise in equities, some market participants remained cautious on the extent of progress in U.S.-China trade relations.
"This rally today is very tentative," said Keith Lerner, chief market strategist at SunTrust Advisory Services in Atlanta. "People don't really know what the true story is."
Even so, U.S. 10-year Treasury yields edged higher after having fallen to a three-year low earlier, while spot gold
Benchmark 10-year Treasury notes
The safe-haven Japanese yen
(Reporting by April Joyner; Additional reporting by Kate Duguid in New York, Akanksha Rana in Bangalore, and Tommy Wilkes and Dhara Ranasinghe in London; Editing by Steve Orlofsky and Leslie Adler)
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Updated Date: Aug 27, 2019 02:06:26 IST