GLOBAL MARKETS-Oil rises with eyes on Iraq; stocks, dollar little changed

Published 07/10/2019, 17:33
Updated 07/10/2019, 17:40
© Reuters.  GLOBAL MARKETS-Oil rises with eyes on Iraq; stocks, dollar little changed

(Updates prices; changes comment, dateline; previous LONDON)

By Rodrigo Campos

NEW YORK, Oct 7 (Reuters) - Oil prices jumped on Monday as

supply issues took center stage following a week of sharp

losses, while stocks and the dollar were little changed with

eyes on the upcoming Sino-U.S. trade talks.

Oil was bid higher as deadly anti-government unrest gripped

Iraq, the second-largest producer among the Organization of the

Petroleum Exporting Countries.

Iraq's oil exports could be partly disrupted if instability

lasts for weeks, Ayham Kamel, Middle East and North Africa head

at Eurasia Group, said in a note.

"Any oil production disruption would occur at a time when

Saudi Arabia has lost a significant part of its energy system

redundancies (spare capacity)," he said.

U.S. crude CLc1 rose 1.63% to $53.67 per barrel and Brent

LCOc1 was last at $59.11, up 1.27% on the day.

Remarks by Federal Reserve Chairman Jerome Powell and

minutes from the most recent Fed meeting will later this week

keep traders looking for signs on what the central bank is

considering in its upcoming meeting.

On Wall Street, major stock indexes were little changed as

the most recent catalyst, U.S.-China trade, is on hold ahead of

talks that resume on Thursday.

Stocks were hit last week on concerns that softening U.S.

manufacturing and services sector data was a harbinger for a

slide to recession in the world's largest economy. Strong jobs

data on Friday softened the blow.

"The market is going to be volatile until we get some news

out of Washington. Everything, literally, depends on the tone

around trade," said Art Hogan, chief market strategist at

National Securities in New York.

The Dow Jones Industrial Average .DJI fell 18.15 points,

or 0.07%, to 26,555.57, the S&P 500 .SPX lost 1.68 points, or

0.06%, to 2,950.33 and the Nasdaq Composite .IXIC added 2.25

points, or 0.03%, to 7,984.72.

The pan-European STOXX 600 index .STOXX rose 0.71% and

MSCI's gauge of stocks across the globe .MIWD00000PUS gained

0.07%.

Emerging market stocks lost 0.25%. MSCI's broadest index of

Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.04%

lower, while Japan's Nikkei .N225 lost 0.16%.

The dollar was little changed against a basket of its peers,

but Turkey's lira slid to its lowest level against the dollar in

more than a month after the White House said Ankara would soon

launch unilateral military operations in northeast Syria.

The Turkish lira lost 1.88% versus the U.S. dollar at 5.80,

its weakest since early September.

U.S. President Donald Trump later threatened to "totally

destroy and obliterate the Economy of Turkey" if Ankara does

anything "off limits."

The dollar index .DXY rose 0.07%, with the euro EUR=

unchanged at $1.0976.

The Japanese yen weakened 0.18% versus the greenback at

107.16 per dollar, while Sterling GBP= was last trading at

$1.2311, down 0.16% on the day. lost 1.99%

U.S. Treasury yields drifted higher, with benchmark 10-year

notes US10YT=RR last down 11/32 in price to yield 1.5494%,

from 1.514% late on Friday.

Spot gold XAU= dropped 0.4% to $1,498.04 an ounce. U.S.

gold futures GCc1 fell 0.59% to $1,497.30 an ounce.

Global assets in 2019 http://tmsnrt.rs/2jvdmXl

Global currencies vs. dollar http://tmsnrt.rs/2egbfVh

Emerging markets in 2019 http://tmsnrt.rs/2ihRugV

MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j

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