U.S.-EU trade deal pushes stock rally to fourth day
By Trevor Hunnicutt NEW YORK (Reuters) - Global stocks extended their rally into a fourth consecutive day on Wednesday after U.S.
By Trevor Hunnicutt
NEW YORK (Reuters) - Global stocks extended their rally into a fourth consecutive day on Wednesday after U.S. President Donald Trump and the European Union reached an agreement that investors hope will avert a trade war.
Trump and the European Commission's chief, Jean Claude-Juncker, agreed to work to lower industrial tariffs on both sides and to increase European imports of liquefied natural gas and soybeans from the United States, among other measures, the U.S. president said in a news conference.
The Dow Jones Industrial Average <.DJI> rose 172.16 points, or 0.68 percent, to 25,414.1, the S&P 500 <.SPX> gained 25.67 points, or 0.91 percent, to 2,846.07 and the Nasdaq Composite <.IXIC> added 91.47 points, or 1.17 percent, to 7,932.24.
MSCI's gauge of stocks across the globe <.MIWD00000PUS> gained 0.53 percent after earlier flirting with losses.
"Trade war type headlines have been the biggest driver of market sentiment - both for Treasuries and stocks - for quite a while now. This is the first time we've gotten good news," said Thomas Simons, money market economist at Jefferies & Co.
Trade has been a significant barrier to the markets, but the respite may not last long.
Markets are also focused on the busiest earnings reporting week of the quarter for S&P 500 companies and also awaiting a European Central Bank meeting and U.S. gross domestic product figures later this week.
Yet of the 148 S&P 500 companies that reported quarterly earnings so far, 86 percent have topped Wall Street forecasts, a record dating back to 1994, according to Thomson Reuters I/B/E/S.
The dollar index, which measures the greenback against a basket of six currencies <.DXY>, fell 0.4 percent, further scaling down from its July 19 peak for 2018, when Trump suggested the greenback had grown too strong.
Gold, which is priced in dollars and typically rises when the currency falls, added 0.6 percent to $1,231.71 an ounce on the spot market.
An early reprieve for 10-year Treasury notes, a benchmark for global borrowing costs, faded with the trade news.
Bond traders have been whipsawed this month by speculation the Bank of Japan could withdraw stimulus and by bets that the gap between short and long-term yields would widen if Trump pressured the Federal Reserve to stop dollar-boosting rate hikes. The latter wager - on a "steeper" yield curve - unwound for a second straight day.
The 10-year notes fell 4/32 in price to yield 2.9653 percent, and the gap between 2 and 10-year yields shrank to 29 basis points, from highs above 33 basis points on Tuesday.
Oil prices rose for a second day after U.S. crude inventories fell to the lowest in over three years, soothing worries about oversupply.
U.S. crude futures
(Reporting by Trevor Hunnicutt; Additional reporting by Kate Duguid and Stephanie Kelly in New York and Marc Jones in London; Editing by Nick Zieminski and Chizu Nomiyama)
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.