Global stocks, gold little changed as trade war spurs concerns

By Herbert Lash NEW YORK (Reuters) - Global equity markets traded flat on Monday as investors hoped officials would delay more U.S.

Reuters December 10, 2019 03:05:32 IST
Global stocks, gold little changed as trade war spurs concerns

Global stocks gold little changed as trade war spurs concerns

By Herbert Lash

NEW YORK (Reuters) - Global equity markets traded flat on Monday as investors hoped officials would delay more U.S. tariffs set to take effect on Chinese goods this coming Sunday, while gold held firm as investors hedged against a possible escalation in the trade war.

Crude oil prices fell and the dollar slipped against the safe-haven Swiss franc after data showed Chinese exports in November shrank for the fourth straight month, reviving concerns about damage to global demand caused by the 17-month trade spat.

A Dec. 15 deadline that will usher in $156 billion in U.S. tariffs on Chinese goods stirred caution, leading MSCI's all-country world index to trade flat while shares on Wall Street slid and European equities closed lower.

Investors have bid up stocks in recent weeks, pushing the three major Wall Street indexes close to new record highs and MSCI's gauge of global equity performance to less than three points from its all-time peak.

Buoyed by Friday's blockbuster U.S. jobs report, traders and investors held out hope for a delay in the U.S. tariff deadline, while expecting more positive gestures from both sides.

Large-cap U.S. equities are trading at about 17.5 times forward earnings, said Michael Mullaney, director of global markets research at Boston Partners in Boston. The S&P 500 could reach 3250 or 3300 next year if a trade agreement reached, he said.

"The market right now already have a favourable resolution (to the trade talks) baked into the prices," Mullaney said, but if no trade deal is forthcoming, prices could fall 7% to 10%, he said.

China hopes it can reach a trade agreement with the United States that satisfies both sides, Assistant Commerce Minister Ren Hongbin told reporters overnight.

MSCI's gauge of stocks across the globe <.MIWD00000PUS> shed 0.05%, while stocks on Wall Street traded little changed and slid in Europe.

The pan-European STOXX 600 index <.STOXX> lost 0.24%.

On Wall Street, the Dow Jones Industrial Average <.DJI> fell 69.63 points, or 0.25%, to 27,945.43. The S&P 500 <.SPX> lost 5.82 points, or 0.19%, to 3,140.09 and the Nasdaq Composite <.IXIC> dropped 19.29 points, or 0.22%, to 8,637.24.

The dollar index <.DXY>, a measure of the greenback against six other major trading currencies, fell.

Against the Swiss franc, which tends to draw investors during times of geopolitical or financial stress, the dollar was 0.21% lower.

The dollar index <.DXY> fell 0.05%, with the euro up 0.05% to $1.1063. The Japanese yen weakened 0.05% versus the greenback at 108.65 per dollar.

U.S. Treasury yields fell after rising three straight days as risk appetite ebbed after the weak Chinese trade data.

Benchmark 10-year notes rose 4/32 in price to yield 1.8294%.

German exports rose unexpectedly in October, a morale boost for Europe's largest economy, but it had little impact on the European bonds.

Yields on Germany's 10-year bund , a benchmark for the euro zone, fell to -0.304%.

Oil prices fell on the Chinese export data.

Brent futures fell 14 cents to settle at $64.25 a barrel. West Texas Intermediate oil futures slid 18 cents to settle down at $59.02 a barrel.

U.S. gold futures settled mostly unchanged at $1,464.90 an ounce.

(Reporting by Herbert Lash; additional reporting by Shreyashi Sanyal in Bengaluru; Editing by Dan Grebler and Nick Zieminski)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Snow-struck Madrid struggles with cleanup as severe frost grips Spain
World

Snow-struck Madrid struggles with cleanup as severe frost grips Spain

By Elena Rodriguez and Belén Carreño MADRID (Reuters) - Authorities struggled to clear ice and fallen trees from the streets of Madrid on Tuesday and temperatures in parts of Spain hit record lows after a snowstorm wrought havoc across the country at the weekend. Early jubilation at the historic snowfall, which saw skiers gliding through the streets and mass snowball fights, gave way to frustration as most public transport remained stalled and pedestrians avoided the icy streets. "You in Madrid are not ready for this," said Demetrio, a Ukrainian living in Madrid, who did not give his last name.

Trump disavows any responsibility for his supporters' Jan. 6 attack
World

Trump disavows any responsibility for his supporters' Jan. 6 attack

By Steve Holland and Andrea Shalal JOINT BASE ANDREWS, Md./WASHINGTON (Reuters) - U.S. President Donald Trump, facing impeachment on a charge of "incitement of insurrection" on Tuesday disavowed responsibility for his supporters' violent invasion of the U.S. Capitol last week and said his remarks before the siege were appropriate.

Renault and Plug Power to develop fuel-cell commerical vehicles
News &amp; Analysis

Renault and Plug Power to develop fuel-cell commerical vehicles

PARIS (Reuters) - French carmaker Renault and U.S. hydrogen specialist Plug Power have joined forces to develop hydrogen-powered light commercial vehicles, they said on Tuesday. The companies have signed a memorandum of understanding to launch a France-based 50-50 joint venture by the end of the first half of 2021, targeting more than 30% share of the fuel cell-powered light commercial vehicle market in Europe, their joint statement said