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GLOBAL MARKETS-Stocks, bond yields lifted by U.S.-China trade hopes

Published 13/09/2019, 21:14
© Reuters.  GLOBAL MARKETS-Stocks, bond yields lifted by U.S.-China trade hopes
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* MSCI world share index hits highest level since late July

* S&P 500 within striking distance of record

* China to exempt some agricultural products from tariffs

-Xinhua

* Bond yields at multi-week highs as recession worries ebb

(Updates with close of U.S. markets, oil settlement prices)

By Chuck Mikolajczak

NEW YORK, Sept 13 (Reuters) - A gauge of global stocks rose

for an eighth straight day and benchmark government bond yields

climbed on Friday after signs of progress in U.S.-China trade

talks, as well as a solid U.S. retail sales report, allayed

recession worries.

Stocks on Wall Street were little changed, as weakness in

tech companies Apple AAPL.O and Broadcom AVGO.O helped erase

initial gains fueled by positive signals on the trade war

between the world's two largest economies. Financials .SPSY

were among the best performers, aided by the rise in bond

yields.

Still, the benchmark S&P 500 rose for a third straight week

and stood about 0.6% from its record closing high set on July

U.S. President Donald Trump said on Thursday he was

potentially open to an interim trade deal with China, although

he stressed an "easy" agreement would not be possible. That was

followed up on Friday by China's official Xinhua News Agency

announcing the country would exempt some U.S. agricultural

products, such as pork and soybeans, from additional tariffs.

Reports showing solid U.S. retail sales and a measure of

U.S. consumer sentiment above expectations added to the optimism

and eased concerns about economic growth, although the Federal

Reserve was still widely expected to cut rates at its policy

meeting on Wednesday. The Bank of Japan is to follow with its

announcement on Thursday. "We've had these small concessions back and forth, which at

minimum gives investors some confidence that things are moving

in the right direction," said Joseph Sroka, chief investment

officer at NovaPoint in Atlanta.

The Dow Jones Industrial Average .DJI rose 36.28 points,

or 0.13%, to 27,218.73, the S&P 500 .SPX lost 2.3 points, or

0.08%, to 3,007.27 and the Nasdaq Composite .IXIC dropped

17.75 points, or 0.22%, to 8,176.71.

European shares closed higher for a fourth straight session

to notch their fourth straight week of gains, as the positive

tone surrounding the U.S.-China trade talks pushed cyclical

sectors such as banks and miners higher. The pan-European STOXX 600 index .STOXX rose 0.34% and

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

0.20%. MSCI's index notched its eighth straight day of gains to

mark its longest winning streak in nearly two years.

The U.S. economic data and easing of trade tensions helped

lift bond yields to multi-week highs, with yields on 10-year

notes reaching a six-week high and those on 30-year bonds

touching their highest in five weeks. Benchmark 10-year notes US10YT=RR last rose 1-1/32 in

price to yield 1.9046%, from 1.791% late on Thursday.

The euro gained against the dollar for a second day,

although gains were pared after the release of the U.S. data, as

the European Central Bank on Thursday exempted euro zone banks

from a penalty charge, which analysts say will reduce the

currency impact of new stimulus. The dollar index .DXY fell 0.12%, with the euro EUR= up

0.13% to $1.1075.

Oil prices dipped, and both Brent and WTI posted weekly

declines. U.S. crude CLcv1 settled down 0.44% at $54.85 per

barrel and Brent LCOcv1 was last at $60.22, down 0.26% on the

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

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

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

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