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GLOBAL MARKETS-U.S. stock futures gain on better trade tone, oil climbs

Published 23/09/2019, 00:57
© Reuters.  GLOBAL MARKETS-U.S. stock futures gain on better trade tone, oil climbs
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* Asian stock markets : https://tmsnrt.rs/2zpUAr4

* E-Mini futures for S&P 500 up 0.5%, Nikkei futures rise

* Risk-sensitive Aussie firms, dollar up on yen

* Oil gains after sell-off on Friday, gold nudges lower

By Swati Pandey

SYDNEY, Sept 23 (Reuters) - Wall Street stock futures edged

up in early trade on Monday, setting an upbeat tone for Asian

markets on hopes of an interim Sino-U.S. tariff deal after the

U.S. Trade Representative characterised their two days of talks

as "productive".

Oil gained more than 1% to their highest in two sessions as

Middle East tensions remained elevated, supporting prices.

The E-mini futures for U.S. S&P 500 ESc1 climbed 0.5% in

while Chicago-traded Nikkei futures NIYcm1 suggest Japan's

Nikkei .N225 is on course to rise 0.4%.

MSCI's broadest index of Asia-Pacific shares outside Japan

.MIAPJ0000PUS , up 3.4% so far this month, is likely to hold a

firm tone on Monday.

The U.S. Trade Representative's office issued a brief

statement characterising the two days as "productive" and that a

principal-level trade meeting in Washington would take place in

October as previously planned. China's Commerce Ministry, in a brief statement, described

the talks as "constructive", and said they had also had a good

discussion on "detailed arrangements" for the high-level talks

in October.

"Both sides agreed to continue to maintain communication on

the relevant issues," it added, without elaborating.

Additionally, the United States removed tariffs from more

than 400 Chinese products in response to requests from U.S.

companies.

"The two nations have continued to hold constructive talks.

That's helped the sentiment but the markets still remain

unconvinced," said Rodrigo Catril, senior forex strategist at

National Australia Bank in Sydney.

Market sentiment was still a bit jittery as news broke on

Friday that Chinese officials unexpectedly cancelled a visit to

U.S. farms next week following their two days of negotiations in

Washington.

That led to losses in Wall Street on Friday with the Dow

closing 0.6% lower, the S&P500 .SPX 0.5% down and Nasdaq

.IXIC off 0.8%.

"There has not been any progress, at least officially, in

terms of the more contentious issues," Catril added.

Analysts said they'd closely follow U.S.-China trade talks

in coming weeks.

Later in the day, September manufacturing activity surveys

are due from the United States and European Union with market

looking for a small rebound.

In currencies, the dollar gained a tad against the safe

haven Japanese yen to 107.61 JPY= . The risk-sensitive

Australian dollar AUD=D3 was up 0.11%.

The euro EUR=D3 was mostly flat as was the British pound

GBP= .

Brent crude LCOc1 futures gained on Monday, rising 1.1%,

or 72 cents, to $65 a barrel, while U.S. crude CLc1 futures

added 1.2%, or 71 cents, to $58.80 a barrel. O/R

The Pentagon has ordered additional troops to be deployed in

the Gulf region to strengthen Saudi Arabia's air and missile

defences following an attack on Saudi oil facilities.

U.S. Secretary of State Mike Pompeo said on Sunday the

additional troops are for "deterrence and defence" and

Washington aimed to avoid war with Iran.

But with markets calmer since the Sept. 14 attacks on Saudi

Arabian refineries, gold pulled back. GOL/

Spot gold XAU= was off 0.2% at $1,513.71 an ounce.

Asia stock markets https://tmsnrt.rs/2zpUAr4

Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA

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(Editing by Jacqueline Wong)

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