(Adds U.S. market open, byline, dateline; previous LONDON)
* Germany's trade sensitive DAX closes little changed
* Wall Street, MSCI global index edge lower; dollar too
* Oil gains on Reuters report OPEC like to extend output
By Herbert Lash
NEW YORK, Nov 21 (Reuters) - The U.S. dollar and global
equity markets edged lower on Thursday as efforts by China to
smooth the path forward in U.S.-Sino trade talks was offset by
concerns tensions between the world's two largest economies were
too large to quickly overcome.
Oil prices rose after Reuters reported the Organization of
the Petroleum Exporting Countries and its allies are likely to
extend existing output cuts until mid-2020. Yields on U.S. Treasury debt rose, snapping three sessions
of declines, bolstered by China saying it was willing to work
with the United States to resolve core trade concerns,
rekindling some hopes for a bilateral deal. Also lifting sentiment was a Wall Street Journal report that
said China had invited top U.S. trade negotiators for a new
round of face-to-face talks in Beijing. Germany's trade-sensitive DAX index .GDAXI pared most
losses to end 0.02% lower.
"This just shows that the trade deal is not dead and that we
will get some sort of an extended truce, which is a positive,"
said Peter Cardillo, chief market economist at Spartan Capital
Securities in New York.
"What we're going through now is a market beginning to
realize the daily rhetoric of the trade news – one day positive,
one day negative – is beginning to wear off," he said, adding he
would not be surprised to see stocks end the day higher.
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
0.33%, while the pan-European STOXX 600 index .STOXX lost
0.44%.
The Dow Jones Industrial Average .DJI fell 77.77 points,
or 0.28%, to 27,743.32. The S&P 500 .SPX lost 7.37 points, or
0.24%, to 3,101.09 and the Nasdaq Composite .IXIC dropped
20.75 points, or 0.24%, to 8,505.98.
The latest news on the trade deal came after a series of
headlines earlier this week that suggested ongoing talks were
unraveling.
Reuters reported on Wednesday negotiations to finalize a
deal may extend into next year as Beijing presses for more
extensive tariff rollbacks and the Trump administration counters
with heightened demands of its own. Benchmark German bond yields also ended a three-day streak
of declines to nudge higher.
German 10-year bond yields, considered a euro zone
benchmark, rose nearly 2 basis points to -0.3340%.
The benchmark 10-year U.S. Treasury note US10YT=RR fell
8/32 in price to push yields higher to 1.7637%.
The dollar edged lower against other major currencies.
The dollar index .DXY fell 0.01%, with the euro EUR=
down 0.03% to $1.1069. The Japanese yen JPY= strengthened
0.03% versus the greenback at 108.59 per dollar.
Brent crude LCOc1 rose $1.10 to $63.50 a barrel, while
West Texas Intermediate (WTI) crude CLc1 gained 92 cents to
$57.93.
Both benchmarks had fallen earlier in the session.
Global markets https://tmsnrt.rs/2KG7whL
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