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Global Markets - Stocks boosted by U.S.-China trade hope, oil prices soar

Reuters  |  NEW YORK 

By Saqib Iqbal Ahmed

NEW YORK (Reuters) - Stocks around the world extended recent gains and jumped on Wednesday on optimism the and may be inching toward a trade deal, soothing fears of an all-out trade war and its possible impact on global growth.

Heightened risk appetite boosted yields to the highest this year, while the U.S. dollar extended losses after minutes from a Dec. 18-19 Federal Reserve policy meeting showed many policymakers said the central could be patient on future rate hikes.

Delegations from and the U.S. ended talks in on Wednesday amid signs of progress on issues including purchases of U.S. farm and commodities and increased access to China's markets.

has pledged to purchase "a substantial amount" of agricultural, and manufactured goods and services from the United States, the U.S. Trade Representative's office said on Wednesday.

MSCI's all-country index <.MIWD00000PUS> climbed 1.03 percent for a fourth day of gains.

That added to advances since last week in equity markets around the world, following a strong U.S. employment report and comments from the Federal Reserve that calmed worries U.S. interest rate hikes would hurt growth.

A range of policymakers said last month they could be patient about future interest rate increases and a few did not support the central bank's rate increase that month, minutes from their Dec. 18-19 policy meeting showed.

On Wednesday, a clutch of officials said they would be cautious about any further increases in interest rates so the central could assess growing risks to an otherwise-solid U.S. economic outlook.

The U.S. stock market was supported by advances by technology and other trade-sensitive sectors. The benchmark S&P 500 <.SPX> index is up by about 10 percent from 20-month lows hit around

"If you want to gauge how investors are viewing the trade talks, just watch tech, and in particular," said Jack Ablin, investment officer at in

The Dow Jones Industrial Average <.DJI> rose 91.67 points, or 0.39 percent, to close at 23,879.12, the S&P 500 <.SPX> gained 10.55 points, or 0.41 percent, to end at 2,584.96 and the Nasdaq Composite <.IXIC> added 60.08 points, or 0.87 percent, to finish at 6,957.08.

The pan-European STOXX 600 <.STOXX> benchmark closed up 0.53 percent, its highest close in nearly four weeks.

jumped, helped by the hopes of easing trade tensions between China and the U.S., while OPEC-led crude output cuts also provided support.

Brent crude futures rose $2.72 to settle at $61.44 a barrel, a 4.6 percent gain. U.S. Intermediate (WTI) crude futures rose $2.58 to settle at $52.36 a barrel, a 5.2 percent gain.

The dollar tumbled to its lowest level since October after the Fed expressed caution about future rate hikes, and as investors reduced safe-haven bets due to optimism about U.S.-China trade talks.

"It will probably be mid-year before the Fed excites hike prospects again," said Joseph Trevisani, at in New York.

yields climbed to the highest this year, helped by improved risk appetite, but retreated following dovish commentary from Fed speakers and a strong 10-year note auction.

Benchmark 10-year notes were last down 2/32 in price to yield 2.7225 percent after earlier rising to 2.747 percent, the highest since Dec. 28.

Gold prices rose on Wednesday, with spot gold up 0.68 percent to $1,293.65 per ounce.

(Reporting by Saqib Iqbal Ahmed; Additional reporting by in Bengaluru and Gertrude Chavez-Dreyfuss in New York; Editing by and Chris Reese)

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

First Published: Thu, January 10 2019. 03:28 IST
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