By Saqib Iqbal Ahmed
NEW YORK (Reuters) - Stocks around the world extended recent gains and oil prices jumped on Wednesday on optimism the United States and China 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 U.S. Treasury 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 Fed policymakers said the central bank could be patient on future rate hikes.
Delegations from China and the U.S. ended talks in Beijing on Wednesday amid signs of progress on issues including purchases of U.S. farm and energy commodities and increased access to China's markets.
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 chief that calmed worries U.S. interest rate hikes would hurt growth.
A range of Fed 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 Fed officials said they would be cautious about any further increases in interest rates so the central bank 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 Christmas.
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.
Oil prices jumped, helped by the hopes of easing trade tensions between China and the U.S., while OPEC-led crude output cuts also provided support.
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.
U.S. Treasury 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
Gold prices rose on Wednesday, with spot gold
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)