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Global Markets - Stocks rise on 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 that the and may be inching towards a trade deal, soothing fears of an all-out trade war and its possible impact on global growth.

Optimism regarding a trade deal boosted yields to their highest this year, while the U.S. dollar extended its losses after minutes from a Dec. 18-19 Federal Reserve policy meeting showed that 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 1.14 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 that U.S. interest rate hikes would hurt growth.

A range of Federal Reserve 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 U.S. Federal Reserve officials said they would be cautious about any further increases in interest rates so that 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 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 169 points, or 0.71 percent, to 23,956.45, the S&P 500 <.SPX> gained 17.27 points, or 0.67 percent, to 2,591.68 and the Nasdaq Composite <.IXIC> added 76.86 points, or 1.11 percent, to 6,973.86.

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

Optimism that the trade standoff would be resolved also lifted

U.S. Intermediate (WTI) were at $52.32 per barrel, up $2.54, or 5.1 percent, the first time this year that WTI has topped $50. International futures were up $2.71, or 4.62 percent, at $61.43 per barrel.

The dollar sank to its lowest since October, with gains led by the euro and sterling, as risk appetite improved and investors reduced their safe-haven bets.

"As long as you don't see a situation where there is a negative turn much like what we saw over the last quarter, markets will probably view any trade development, even if they're not concluded by the March 1 deadline, with modest optimism just because it reduces the downside risk to the outlook," said Mazen Issa, senior FX strategist, at in New York.

Improved risk appetite sent yields to their highest this year, ahead of the sale of new 10-year supply by the Treasury Department.

10-year notes were last down 3/32 in price to yield 2.7261 percent after earlier rising to 2.747 percent, the highest since Dec. 28.

Gold prices rose on Wednesday, with spot gold rising 0.49 percent to $1,291.2 per ounce.

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

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

First Published: Thu, January 10 2019. 01:22 IST
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