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World stocks rise on U.S.-China trade talk hopes

Reuters  |  NEW YORK 

By Saqib Iqbal Ahmed

NEW YORK (Reuters) - An index of world stocks rose for the third straight session on Tuesday, with investors hopeful that the and would strike a deal to end their months-long trade war that has hurt sentiment in financial markets.

Increased risk appetite helped lift yields, while the dollar, which hit an 11-week low on Monday, rebounded as the weakened on concerns about a slowdown in the zone

Tuesday's advance for stocks added to gains logged over the past two sessions following last week's strong U.S. employment report and comments from the Federal Reserve that calmed worries that interest rate hikes would hurt growth.

Trade and concerns over slowing economic growth triggered a selloff at the end of 2018 that culminated in Wall Street posting its worst monthly performance in about a decade in December, driving down earnings estimates and stock valuations.

On Tuesday, MSCI's world equity index <.MIWD00000PUS>, which tracks shares in 47 countries, rose 0.62 percent to a more than three-week high.

The and will continue trade talks in for an unscheduled third day, a member of the U.S. delegation said on Tuesday.

Trade talks this week in are the first face-to-face discussions since U.S. and Chinese agreed in December to a 90-day truce in their trade war.

Trump, in a post on on Tuesday, reiterated his recent statement that the talks with were going well but gave no details.

"You're seeing some negotiations happen and the market is starting to think that perhaps we'll start to see a framework evolve," said Anik Sen, at

The recent stocks rally has lifted the S&P 500 <.SPX> by about 9 percent from 20-month lows hit around

On Tuesday, the <.DJI> rose 241.31 points, or 1.03 percent, to 23,772.66, the S&P 500 <.SPX> gained 20.55 points, or 0.81 percent, to 2,570.24 and the Nasdaq Composite <.IXIC> added 63.63 points, or 0.93 percent, to 6,887.10.

European shares hit a three-week high in a broad-based rebound on hopes of a possible trade deal between China and the The pan-European 600 index <.STOXX> closed up 0.87 percent.

yields climbed, in line with higher U.S. stocks, on improved risk appetite and as the Treasury Department sold $38 billion in three-year notes to relatively soft demand.

Benchmark 10-year notes fell 8/32 in price to yield 2.7101 percent, up from 2.682 percent on Monday.

The dollar rose against the as investors focused on the risk of a euro zone recession after data showed more signs of slowing in the region. The euro was 0.3 lower against the greenback.

"The euro had its upturn halted by German data showing the third decline in as many months in a gauge of factory growth," said Joe Manimbo, at in

The improved appetite for risk and the stronger dollar weighed on gold prices. Spot gold slipped 0.3 percent to $1,284.71 per ounce.

extended gains, supported by hopes that the U.S.-China trade talks might defuse the trade dispute, while OPEC-led supply cuts also tightened markets.

Brent crude futures rose $1.39 to settle at $58.72 a barrel, a 2.4 percent gain. U.S. Intermediate (WTI) crude futures rose $1.26 to settle at $49.78 a barrel, a 2.6 percent gain.

(Reporting by Saqib Iqbal Ahmed; Additional reporting by in New York and in Bangalore; Editing by Dan Grebler)

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

First Published: Wed, January 09 2019. 01:35 IST