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GLOBAL MARKETS-Stocks climb on hopes for progress in trade; Canadian dollar gains

Published 21/10/2019, 21:51
© Reuters.  GLOBAL MARKETS-Stocks climb on hopes for progress in trade; Canadian dollar gains
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* Oil ends lower

* Chilean peso drops after protests

* Benchmark 10-year yields up

(Adds U.S. markets' closing levels)

By Caroline Valetkevitch

NEW YORK, Oct 21 (Reuters) - World stock indexes rose on

Monday as signs of work to resolve the U.S.-China trade war

bolstered investor hopes, while the Canadian dollar strengthened

in the hours before results of the election for prime minister.

U.S. President Donald Trump praised efforts to end the

U.S.-China dispute, while White House adviser Larry Kudlow said

tariffs scheduled for December could be withdrawn if talks go

well.

In Britain, the parliament's speaker refused to allow a vote

on Boris Johnson's divorce deal with the European Union,

suggesting the British prime minister faces further problems in

Brexit ratification. Johnson's opponents in parliament on Saturday demanded a

change to the sequencing of the ratification of the deal,

forcing him to request a delay.

MSCI's world equity index .MIWD00000PUS , which tracks

shares in 47 countries, gained 0.6%. The Euro STOXX 600 .STOXX

added 0.6%, while the S&P 500 .SPX index ended up 0.7%.

"Trade news on the whole seems positive," said Rick Meckler,

partner, Cherry Lane Investments, a family investment office in

New Vernon, New Jersey.

"Political news is so overwhelming, in a way, that I think

investors are beginning to tune it out."

On Friday, Chinese Vice Premier Liu He said that Beijing

will collaborate with the United States to address mutual

concerns on the trade war. Stocks investors are also gearing up for more high-profile

earnings reports this week from such companies as Microsoft Corp

MSFT.O .

On Wall Street, the Dow Jones Industrial Average .DJI rose

57.44 points, or 0.21%, to 26,827.64, the S&P 500 .SPX gained

20.52 points, or 0.69%, to 3,006.72 and the Nasdaq Composite

.IXIC added 73.44 points, or 0.91%, to 8,162.99.

The U.S. dollar recovered earlier losses as Brexit

negotiations were once again thrown into disarray. Against the

dollar, sterling GBP= was last down 0.02% to $1.297 having

earlier broken above $1.30 for the first time in 5-1/2 months.

The Canadian dollar CAD= was last 0.31% stronger against

the U.S. dollar. The election will determine if Trudeau will

remain in power after two major scandals. The Chilean peso CLP= was down more than 2% in its biggest

daily percentage decline in more than six years after a state of

emergency was declared in the capital city of Santiago following

violent protests over the weekend. In the U.S. bond market, yields rose as investors sold

safe-haven debt on optimism about the potential U.S.-China trade

deal.

In afternoon trading, U.S. 10-year note yields US10YT=RR

rose to 1.794% from 1.75% late on Friday. In commodities, oil prices fell. U.S. crude CLcv1 fell

0.9% to settle at $53.31 per barrel and Brent LCOcv1 settled

at $58.96, down 0.8% on the day. For Reuters Live Markets blog on European and UK stock

markets, click on: LIVE/

World FX rates in 2019 http://tmsnrt.rs/2egbfVh

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

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