(Adds close of U.S. markets, paragraphs 6, 7)
* Upbeat U.S. economic data lifts dollar, equities
* Trump, Xi offer reassuring comments about trade deal
* Business activity in euro zone almost grinds to halt
By Herbert Lash
NEW YORK, Nov 22 (Reuters) - The dollar gained and global
equity markets rose on Friday on upbeat U.S. economic data while
amicable messages from Chinese President Xi Jinping and U.S.
President Donald Trump helped defuse tensions over the prolonged
U.S.-Sino trade war.
Government bond yields mostly rose as U.S. manufacturing
output accelerated in November to its fastest pace in seven
months and a survey of purchasing managers showed services
activity also picked up more than expected. Equity markets warmed to China's renewed offer to reach a
trade agreement with the United States. Xi said China wants to
work out an initial pact and avoid a trade war. Trump reciprocated, saying a trade deal with China is
"potentially very close" and also that he stands with both the
people of Hong Kong and Xi amid massive protests in the former
British colony. MSCI's gauge of stocks across the globe .MIWD00000PUS
inched up 0.16%, with the pan-European STOXX 600 index .STOXX
closing up 0.44%.
On Wall Street, the Dow Jones Industrial Average .DJI rose
109.33 points, or 0.39%, to 27,875.62. The S&P 500 .SPX gained
6.75 points, or 0.22%, to 3,110.29 and the Nasdaq Composite
.IXIC added 13.67 points, or 0.16%, to 8,519.89.
A 6.14% slump in shares of Tesla Inc TSLA.O weighed on
Nasdaq as its electric pickup truck design received an
underwhelming response. "What you've seen is a market, even when the trade news
wasn't that great, you've seen the equity market still remaining
extraordinarily well-bid," said Joseph LaVorgna, chief economist
for the Americas at French bank Natixis in New York.
"People got way too pessimistic about growth. The outlook in
my opinion over the next year is much better than it was,"
LaVorgna said.
The dollar index .DXY , which compares the dollar against
six major currencies, was up 0.27% at 98.256.
The euro fell 0.32% against the greenback after a survey
showed euro zone business growth almost ground to a halt this
month, with IHS Markit's flash November composite Purchasing
Managers' Index sliding closer to the 50 mark separating growth
from contraction. IHS Markit's final Purchasing Managers' index readings also
showed German business conditions waned further. After the upbeat U.S. data, most U.S. Treasury yields edged
higher. The benchmark 10-year U.S. Treasury note US10YT=RR was
little changed with its yield at 1.7706%.
Treasury yields had tracked the decline in Europe amid weak
numbers in the region and on nagging doubts about U.S.-China
trade. GVD/EUR .
"There's skepticism about what Trump says, especially with
more U.S. tariffs set to kick in on Dec. 15," said Paul
Mendelsohn, chief investment strategist at Windham Financial
Services in Charlotte, Vermont.
Tariffs can be delayed, Mendelsohn said, "but there's so
much pessimism coming out of China at this point in time, it's
very hard to tell what's real and what's really going on."
Safe-haven German government bond yields had their biggest
daily fall in over a week and were last down 3.6 basis points at
-0.364% DE10YT=RR .
Oil prices pulled back from two-month highs as doubts over
the trade talks overshadowed expectations of an extension to
production cuts by the Organization of the Petroleum Exporting
Countries.
Brent crude futures LCOc1 settled down 58 cents to $63.39
a barrel and West Texas Intermediate (WTI) crude futures CLc1
fell 81 cents to settle at $57.77.
U.S. gold futures GCv1 settled unchanged at $1,463.60 per
ounce.