(Adds close of U.S. markets)
* U.S., China getting close to trade deal- White House
official
* Stocks on Wall Street close at record highs, MSCI climbs
* Treasury, European government yields gain on trade hopes
* Risk assets gold, Japanese yen, Swiss franc decline
By Herbert Lash
NEW YORK, Nov 15 (Reuters) - Crude prices rose and global
equities markets rallied on Friday, with the major U.S. indexes
setting record highs, on renewed optimism the United States and
China are nearing a deal to de-escalate a 16-month trade war
that has crimped global growth.
Equity markets from Tokyo to the major bourses in Europe and
across the Americas gained on remarks by White House officials,
after sputtering earlier in the week when President Donald Trump
dashed hopes of a deal.
Progress was being made on an agreement's details, according
to U.S. Commerce Secretary Wilbur Ross, who said trade talks
were set to continue with a telephone call on Friday as both
sides seek to hammer out a "phase one" pact. Markets overseas rose after economic adviser Larry Kudlow
late Thursday cited what he called very constructive talks with
Beijing about ending trade tensions.
"We're getting close," Kudlow said.
MSCI's gauge of stocks across the globe .MIWD00000PUS
gained 0.76%, lifting it to within 1% of an all-time high set in
January 2018. Its emerging markets index .MSCIEF rose 0.67%.
In Europe, the pan-regional STOXX 600 index .STOXX closed
0.4% higher, close to four-year highs it hit last week. The
FTSEurofirst 300 index .FTEU3 of leading shares added 0.33%.
On Wall Street, the S&P 500 posted its sixth straight week
of gains in a rally that has lifted the benchmark index 8% since
early October. The Dow Jones Industrial Average .DJI rose 222.93 points,
or 0.8%, to 28,004.89, the S&P 500 .SPX gained 23.83 points,
or 0.77%, to 3,120.46 and the Nasdaq Composite .IXIC added
61.81 points, or 0.73%, to 8,540.83.
"The market rally has largely been driven by the positive
sentiment around the trade talks, obviously," said Rahul Shah,
chief executive of Ideal Asset Management in New York.
The fourth quarter, which tends to be the best period for
corporate earnings, will likely be supportive of stocks, but
poor macroeconomic data or a political event could trigger a
downturn, Shah said.
"Since the market is hitting all-time highs and everybody's
comfortable, the risk of an event affecting the market
negatively is higher now because the market is an elevated
level," he said.
The S&P 500 has gained more than 24% year to date, and the
benchmark index is trading at 18 times forward earnings, or
higher than a historical norm of about 15.
All but one of the 11 major S&P 500 sectors were higher,
with healthcare .SPXHC leading the way, gaining 2.21% as
Johnson & Johnson JNJ.N and Pfizer PFE.N lifted the sector.
Gold prices and government debt prices fell as investors
leaned away from safe-haven assets.
U.S. gold futures GCcv1 settled down 0.3% at $1,468.50 per
ounce. Benchmark 10-year U.S. Treasury notes US10YT=RR fell 5/32
in price to push yields up to 1.8342%. Germany's 10-year Bund
yield traded at -0.332% DE10YT=RR . The Japanese yen and Swiss franc, both beneficiaries of a
flight to quality, weakened. The dollar index .DXY fell 0.17%, with the euro EUR= up
0.28% to $1.1052. The yen JPY= weakened 0.36% versus the
greenback at 108.82 per dollar.
Oil futures, meanwhile, gained nearly 2%. Brent crude LCOc1 gained $1.02 to settle at $63.30 a
barrel, while West Texas Intermediate crude CLc1 rose 95 cents
to settle at $57.72 a barrel.
GRAPHIC-Global assets in 2019 http://tmsnrt.rs/2jvdmXl
GRAPHIC-World FX rates in 2019 http://tmsnrt.rs/2egbfVh
GRAPHIC-MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
Emerging markets in 2019 http://tmsnrt.rs/2ihRugV
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