Global stocks rise, investors cool to impeachment talk
By Herbert Lash NEW YORK (Reuters) - The dollar rose and stocks on Wall Street lifted a gauge of global equities on Wednesday on robust U.S.
By Herbert Lash
NEW YORK (Reuters) - The dollar rose and stocks on Wall Street lifted a gauge of global equities on Wednesday on robust U.S. housing data and the notion a strong economy would overcome any investor skittishness over a possible impeachment of President Donald Trump.
European shares cut losses and U.S. stock indexes turned higher early in the session after Trump said a trade deal with China could happen sooner than expected.
Trump made the remarks to reporters a day after delivering a stinging rebuke to China's trade practices at the United Nations General Assembly, saying he would not accept a "bad deal."
Stocks in Europe were pressured by political uncertainty after Democrats in the U.S. House of Representatives moved to launch a formal impeachment inquiry of Trump.
But Wall Street shrugged off an impeachment investigation, with the benchmark S&P 500 posting its biggest daily gain in two weeks. Yields on U.S. Treasury long-dated debt rose after falling for seven straight sessions.
The White House released a summary of a telephone call between Trump and Ukraine's president, who said he was not pushed to investigate former Vice President Joe Biden, the front-runner for the 2020 Democratic presidential nomination.
"As long as the economy remains firm, we don't think the drama out of Washington will impact the staying power of this bull market," said Ryan Detrick, senior market strategist at LPL Financial.
MSCI's gauge of stocks across the globe <.MIWD00000PUS> rose 0.01%. The pan-European STOXX 600 index <.STOXX> closed down 0.58% while in London, the FTSE 100 index <.FTSE> fell 0.02%.
Michael Antonelli, market strategist at Robert W. Baird in Milwaukee, said good economic data is fighting with political noise and good data is winning.
Sales of new U.S. single-family homes rebounded more than expected in August, the latest sign that lower mortgage rates were starting to boost the struggling housing market.
"The impeachment is not a big issue until you get into a recession. It's a big deal politically, but it's not a big deal economically," said Stan Shipley, fixed income strategist, at Evercore ISI in New York.
The Dow Jones Industrial Average <.DJI> rose 162.94 points, or 0.61%, to 26,970.71. The S&P 500 <.SPX> gained 18.25 points, or 0.62%, to 2,984.85 and the Nasdaq Composite <.IXIC> added 83.76 points, or 1.05%, to 8,077.38.
The dollar benefited from a sharp pullback for the pound
The dollar index <.DXY> rose 0.71%, with the euro
Most yields on 10-year euro zone bonds yields rose in late trade following Trump's comment U.S.-China trade.
Germany's 10-year Bund yield rose 2 bps at -0.58%
Yields on U.S. 10-year Treasury notes
Oil prices fell for a second day as U.S. crude inventories unexpectedly surged 2.4 million barrels in the week to Sept. 20, according to the Energy Information Administration, instead of declining 249,000 barrels as analysts expected. [EIA/S]
Crude prices fell after Trump said on Tuesday he saw a path to peace with Iran, easing supply fears after the Sept. 14 attack on Saudi Arabia's oil facilities that halved its output. The kingdom and the United States have blamed Iran for the attack.
Brent crude futures
U.S. gold futures
(Reporting by Karin Strohecker, additional reporting by Saikat Chatterjee in London, Stanley White in Tokyo and Swati Pandey in Sydney; Editing by Bernadette Baum and David Gregorio)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.