Shares rally, bond yields rise as China fuels trade deal hopes
By April Joyner NEW YORK (Reuters) - U.S. and European shares advanced on Thursday as China struck a hopeful tone on trade relations with the United States and as Italy appeared close to forming a new government and resolving its political crisis
By April Joyner
NEW YORK (Reuters) - U.S. and European shares advanced on Thursday as China struck a hopeful tone on trade relations with the United States and as Italy appeared close to forming a new government and resolving its political crisis.
Wall Street stocks jumped more than 1% after China's commerce ministry said Beijing and Washington were discussing the next round of face-to-face talks scheduled for September. The comments spurred hopes for progress in the talks and boosted the Chinese yuan, which snapped a 10-day losing streak.
Stocks have been whipsawed over the past few weeks as trade rhetoric between the United States and China has ranged from combative to conciliatory. On Friday, China unveiled retaliatory tariffs on $75 billion of U.S. goods, and U.S. President Donald Trump said he would tack an additional 5% duty onto $550 billion of Chinese goods.
"If there's promise that they might be able to negotiate and that tariffs will not be implemented right away, that's good news," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.
European shares ended more than 1% higher after Italy's president asked former Prime Minister Giuseppe Conte to return to head up a new coalition of the anti-establishment 5-Star Movement and the opposition centre-left Democratic Party.
The coalition is a step toward resolving a three-week political crisis triggered after League leader Matteo Salvini pulled his hard-right party out of its governing alliance with 5-Star. Italian stocks <.FTMIB> rose nearly 2% and the country's government bonds also rallied, with yields on 10-year bonds hitting a record low.
U.S. Treasury yields, however, moved off recent lows as stocks rose. Data showing second-quarter U.S. gross domestic product growth in line with consensus estimates and weak results at a $32 billion auction of seven-year government notes also bolstered bond yields.
Among currencies, Argentina's peso
On Wall Street, the Dow Jones Industrial Average <.DJI> rose 328.53 points, or 1.26%, to 26,364.63, the S&P 500 <.SPX> gained 37.07 points, or 1.28%, to 2,925.01 and the Nasdaq Composite <.IXIC> added 116.32 points, or 1.48%, to 7,973.21.
The pan-European STOXX 600 index <.STOXX> rose 1.04% and MSCI's gauge of stocks across the globe <.MIWD00000PUS> gained 0.93%.
Benchmark 10-year Treasury notes
The dollar index <.DXY>, tracking it against six major currencies, rose 0.29%, while the euro
The Japanese yen weakened 0.48% versus the greenback at 106.64 per dollar. Sterling
In offshore trading, the Chinese yuan
Among commodities, spot gold
U.S. crude extended its gains from Wednesday on data showing a sharp fall in U.S. inventories, with the approach of Hurricane Dorian toward Florida also raising concerns that offshore producers may slow output if the storm passes into the Gulf of Mexico.
(Reporting by April Joyner; Additional reporting by Akanksha Rana in Bengaluru, Collin Eaton in Houston and Marc Jones in London; Editing by Bernadette Baum and Lisa Shumaker)
This story has not been edited by Firstpost staff and is generated by auto-feed.
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