* Wall Street pulls back after opening at record highs
* MSCI world index climbs to highest since Jan 2018
* U.S. Treasury yield curve flattens, crude loses ground
(Updates to U.S. market open, changes dateline (was LONDON),
byline)
By Stephen Culp
LONDON, Nov 19 (Reuters) - Shares in Europe dipped, Wall
Street backed off record highs and the U.S. dollar was poised to
extend a three-day losing streak as underwhelming earnings and
uncertainty over an ongoing U.S. impeachment inquiry
overshadowed hopes for a U.S.-China trade deal.
The U.S. benchmark S&P 500 index was nominally lower and
Home Depot Inc HD.N pulled the blue-chip Dow Jones Industrial
index firmly into the red after the home improvement retailer
cut its 2019 sales forecast. Talks continued between the world's two largest economies on
an interim deal toward resolving their 18-month, market-rattling
trade dispute that has damaged supply chains and upset global
markets, even as Washington is set to impose a new round of
tariffs on Chinese goods on Dec. 15.
But as the impeachment hearings in the U.S. House of
Representatives gained momentum, the end game of the U.S.-China
trade war grew increasingly foggy. The inquiry focuses on a July
25 phone call in which President Donald Trump asked Ukrainian
President Volodymyr Zelenskiy to carry out two investigations
that would benefit him politically.
"There's a lot of pontification that (President Trump) needs
a trade deal," said Robert Pavlik, chief investment strategist,
senior portfolio manager at SlateStone Wealth LLC in New York.
"And given the impeachment that's going on phase 1 is likely but
he can't give up too much or he'll lose face."
"The impeachment inquiry is being paid special attention to
by the Chinese," Pavlik added. "It puts the president in a less
powerful position. He's somewhat disarmed and they know he has
to reach some kind of agreement to get re-elected."
The Dow Jones Industrial Average .DJI fell 79.52 points,
or 0.28%, to 27,956.7, the S&P 500 .SPX lost 2.73 points, or
0.09%, to 3,119.3 and the Nasdaq Composite .IXIC added 12.52
points, or 0.15%, to 8,562.46.
Hopes of a trade truce earlier in the day drove European
stocks to a four-year high and world stocks to their highest in
nearly two years, but those gains were pared later in the
session.
The pan-European STOXX 600 index .STOXX lost 0.06% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.01%.
Emerging market stocks rose 0.42%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.64%
higher, while Japan's Nikkei .N225 lost 0.53%.
Long-dated U.S. Treasury yields slipped for the seventh
straight day as risk appetite weakened. Benchmark 10-year notes US10YT=RR last rose 4/32 in price
to yield 1.7946%, from 1.808% late on Monday.
The 30-year bond US30YT=RR last rose 16/32 in price to
yield 2.2704%, from 2.293% late on Monday.
The dollar was nominally lower against a basket of major
world currencies, giving up early gains. The dollar index
.DXY , tracking it against six major peers, fell 0.02%, with
the euro EUR= up 0.11% to $1.1082.
The Japanese yen strengthened 0.12% versus the greenback at
108.56 per dollar, while Sterling GBP= was last trading at
$1.2938, down 0.11% on the day.
The protracted trade negotiations continue to weigh on crude
prices, with Brent crude oil futures dipping below $62 per
barrel. U.S. crude CLcv1 fell 1.93% to $55.95 per barrel and Brent
LCOcv1 was last at $61.51, down 1.49% on the day.
Spot gold XAU= rose 0.08% to $1,470.56 an ounce.
Copper CMCU3 rose 0.53% to $5,861.00 a tonne.
Three-month aluminum on the London Metal Exchange CMAL3
lost 0.46% to $1,730.00 a tonne.