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 United States and China would strike a deal to end their months-long trade war that has hurt sentiment in financial markets.
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 chief 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 recent stocks rally has lifted the S&P 500 <.SPX> by about 9 percent from 20-month lows hit around Christmas.
On Tuesday, the Dow Jones Industrial Average <.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.
U.S. Treasury 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
The dollar rose against the euro 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, senior market analyst at Western Union Business Solutions in Washington.
The improved appetite for risk and the stronger dollar weighed on gold prices. Spot gold
Oil prices 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.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)