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World stocks rise amid U.S.-China trade hopes; oil gains

Reuters  |  NEW YORK 

By Lewis Krauskopf

NEW YORK (Reuters) - A gauge of stocks around the world reached its highest point in about two months on Monday amid hopes for improving trade relations between the and China, while climbed further.

Wall Street's main stock indexes registered slim gains, pulling back from stronger increases during the session.

U.S. pledged on Sunday to help "get back into business, fast" after a U.S. ban crippled the Chinese company, offering a job-saving concession to ahead of high-stakes trade talks this week.

MSCI's index of stocks across the globe <.MIWD00000PUS> gained 0.12 percent, hitting a roughly two-month high during the session.

Growing trade tensions have worried investors, with concerns about a global trade war feeding into increased volatility in the in recent months.

"It seems like there's a little less concern about a trade war with given some of the overtures that Trump made," said Chuck Carlson, at in Hammond, "They're hoping for a dying down of the trade war rhetoric and, quite frankly, they're probably looking for some successful deals (to be) made."

The <.DJI> rose 68.24 points, or 0.27 percent, to 24,899.41, the <.SPX> gained 2.41 points, or 0.09 percent, to 2,730.13 and the <.IXIC> added 8.43 points, or 0.11 percent, to 7,411.32.

were the top-performing major group, helped by oil price gains, while defensive sectors such as and lagged.

In Asia, Shanghai's SSE Composite index <.SSEC> rose 0.3 percent, Hong Kong's Hang Seng index <.HSI> climbed 1.4 percent, and Japan's Nikkei <.N225> rose 0.5 percent.

Investors also pointed to improving sentiment about geopolitical tensions involving U.S. said on Sunday that would agree to lift sanctions on if the country agrees to dismantle its nuclear weapons program, a move that would create economic prosperity that "will rival" that of

The pan-European index <.FTEU3> lost 0.04 percent.

rose as reported that the global has been virtually eliminated, while U.S. crude's discount to global Brent widened to its deepest in nearly five months.

U.S. crude settled up 0.37 percent to $70.96 per barrel and Brent settled up 1.44 percent at $78.23.

The report from the Organization of the Petroleum Exporting Countries "was bullish. That absolute plunge in Venezuelan production ... just highlights how tenuous the market is in terms of the supply and demand balance," said John Kilduff, a at

The dollar index <.DXY> rose 0.09 percent, with the euro down 0.05 percent to $1.1936.

10-year notes last fell 7/32 in price to yield 2.9969 percent, from 2.971 percent late on Friday.

GRAPHIC-World stocks in 2018:

(Additional reporting by Stephen Culp and Ayenat Mersie in New York; Editing by and James Dalgleish)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, May 15 2018. 01:54 IST