Stock rally stalls, oil and dollar march higher on trade hopes
By Herbert Lash NEW YORK (Reuters) - The U.S. dollar and crude prices rose on Tuesday, spurred by ongoing optimism a U.S.-China trade deal may be near, but a rally in global equity markets stalled as China pressed U.S. President Donald Trump to remove recently imposed tariffs.
By Herbert Lash
NEW YORK (Reuters) - The U.S. dollar and crude prices rose on Tuesday, spurred by ongoing optimism a U.S.-China trade deal may be near, but a rally in global equity markets stalled as China pressed U.S. President Donald Trump to remove recently imposed tariffs.
MSCI's gauge of global stock markets set a fresh 21-month high before trading flat, and the Nasdaq and Dow Jones industrial average hit new intraday record peaks before U.S. stocks pared gains to trade little changed.
U.S. and European government bond yields climbed, lifted by trade optimism and more upbeat economic data, but China's push to remove more U.S. tariffs imposed in September as part of a "phase one" trade deal raised doubts and spurred profit taking.
"A phase one" trade deal is far from certain," said Fawad Razaqzada, technical analyst at FOREX.com in an investor note.
"So far it has just been promises of a deal underpinning both stocks and the yuan," he said. "It is possible that the rally in both markets will at the very least pause."
ISM's services data showed a reading of 54.7 in October from 52.6 the prior month, or above expectations of 53.4, according to economists polled by Reuters. The data was the latest to allay concerns of a slowdown in the U.S. economy.
MSCI's gauge of stock indexes in 47 countries <.MIWD00000PUS> shed 0.01% while the pan-European STOXX 600 index of small, mid-sized and large stocks <.STOXX> rose 0.10%.
On Wall Street, the Dow Jones Industrial Average <.DJI> rose 36.03 points, or 0.13%, to 27,498.14. The S&P 500 <.SPX> lost 1.62 points, or 0.05%, to 3,076.65 and the Nasdaq Composite <.IXIC> added 5.38 points, or 0.06%, to 8,438.58.
In Asia, optimism was helped by the People's Bank of China's cut in its a medium-term lending rate, the first since early 2016. It was only a token 5 basis points to 3.25%, but it underscored Beijing's ongoing desire to support the economy.
Oil prices rose more than 1% on hopes of a trade deal while gold fell more than 1%, en route to its biggest one-day dip in more than a month.
Also driving crude higher were remarks by OPEC Secretary-General Mohammad Barkindo, who said the oil market outlook for 2020 may be brighter than previously forecast, appearing to downplay any need for deeper production cuts.
The safe-haven yen and Swiss franc slid.
The dollar index <.DXY>, tracking the greenback against six major peers, rose 0.47%, with the euro
Benchmark 10-year U.S. Treasury notes
Germany's 10-year bond yield rose as high as -0.308%
Graphic: U.S. non-manufacturers ISM index - https://fingfx.thomsonreuters.com/gfx/mkt/12/8211/8142/191105A.png
Graphic: World stocks surge $10 in 2019 - https://fingfx.thomsonreuters.com/gfx/mkt/12/8237/8168/Pasted%20Image.jpg
(Reporting by Herbert Lash; Editing by Bernadette Baum)
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.