CORRECTED-GLOBAL MARKETS-Shares, dollar rebound on thaw in U.S.-China trade war

(In first sentence, corrects to say that Treasury yields rose,
not that Treasury prices rose.)
* U.S. to delay some tariffs on Chinese exports
* Dollar soars against yen after U.S. makes some concessions
* Oil gains more than 3%, government debt prices rise

By Herbert Lash
NEW YORK, Aug 13 (Reuters) - U.S. and European stocks
jumped, the dollar strengthened and Treasury yields rose on
Tuesday after the United States said it would delay tariffs on
some Chinese products, easing concerns that a protracted trade
war would harm global growth.
President Donald Trump backed off his plan to impose 10%
tariffs on Sept. 1 on remaining Chinese imports, delaying duties
on cellphones, laptops and many other consumer goods in the
hopes of blunting their impact on U.S. holiday sales.

Equity, debt and currency markets sharply reversed course
minutes after Wall Street opened for trade on news from Hong
Kong about a call Chinese Vice Premier Liu He held with U.S.
officials, according to China's Commerce Ministry. Liu spoke with U.S. Trade Representative Robert Lighthizer
and U.S. Treasury Secretary Steven Mnuchin on Tuesday evening, a
ministry statement said.
Shares of Apple Inc .AAPL.O , a likely beneficiary of the
tariff delay, rose 4.5% and the information technology sector
rose 2.46%, the biggest gainer among the 11 S&P 500 sectors.
Investors are closely watching the headlines and that is
what markets are trading off of, said Candice Bangsund, a global
asset allocation strategist at Fiera Capital in Montreal.
"The news today is obviously good news. Risk appetite has
improved drastically but it's consistent with the environment of
elevated uncertainty," Bangsund said.
Global growth should re-accelerate later this year as major
central banks cut interest rates and recent economic data proves
better than where markets have traded on it, Bangsund said.
The damage created by tariffs will not go away because
economic uncertainly remains, said Kristina Hooper, chief global
market strategist at Invesco in New York.
"We can continue in the situation we've been in for months
which is one step forward, further into the trade war abyss,
followed by one step or a half step backwards," Hooper said.
Wall Street rallied on news of the tariff delay.
The Dow Jones Industrial Average .DJI rose 372.54 points,
or 1.44%, to 26,279.91. The S&P 500 .SPX gained 42.57 points,
or 1.48%, to 2,926.32. The Nasdaq Composite .IXIC added 152.95
points, or 1.95%, to 8,016.36.
Major stock bourses in Europe also surged, with the Euro
STOXX index .STOXX50E of eurozone shares closing 0.92% higher.
Major equity indices had tumbled roughly 5% since late July
on growing concerns that the ongoing U.S.-Chinese trade dispute
would slam global growth and fester unresolved until after the
November 2020 U.S. presidential election.
Markets also had slipped, with gold earlier hitting a more
than six-year high, as the unrest in Hong Kong and a rout in the
Argentine peso drove investors already rattled by the trade war
into havens such as bullion, bonds and the yen.
The yen benefits in moments of geopolitical uncertainty and
during economic downturns. The U.S. dollar rose 1.27% to 106.63
yen JPY= per dollar. Yields on the benchmark U.S. 10-year Treasury notes hit
session highs, while those on 30-year Treasury bonds rallied
from more than three-year lows. Traders earlier were bracing for
30-year yields to sink to a record low below 2.08%. The 10-year Treasury US10YT=RR fell 15/32 in price to push
its yield up to 1.6949%.
Oil prices rose more than 3% on the trade news.
Brent LCOc1 futures settled up $2.73 at $61.30 a barrel,
while U.S. West Texas Intermediate (WTI) crude CLc1 rose $2.17
to settle at $57.10 a barrel. Prior to Tuesday's gains, Brent had traded down more than
20% since hitting a year high in April.
The Argentine peso ARS= was less volatile, trading in a
tighter range, down 6.04% at 55.30 to the dollar. U.S. gold futures GCv1 settled down 0.2% to $1,514.1 an
ounce.

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Reuters poll: 2018 global stock market forecasts interactive
http://tmsnrt.rs/2nHJiJ9
Yen vs U.S. dollar https://tmsnrt.rs/2MYxgb6
Biggest tail risks https://tmsnrt.rs/2YLSe3U
Argentina primary election interactive https://tmsnrt.rs/2MYvyX2
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