GLOBAL MARKETS-Stocks climb on hopes for progress in trade; sterling edges up

Published 21/10/2019, 16:46
Updated 21/10/2019, 16:54
© Reuters.  GLOBAL MARKETS-Stocks climb on hopes for progress in trade; sterling edges up

* Sterling up against the U.S. dollar

* Oil falls

* Benchmark 10-year yields up

(Updates with early U.S. markets activity, changes dateline,

previous LONDON)

By Caroline Valetkevitch

NEW YORK, Oct 21 (Reuters) - Shares on world stock indexes

mostly rose on Monday, as hopes for resolving the U.S.-China

trade war pushed investors toward riskier assets, while the

pound was near a 5-1/2-month high.

The British parliament's speaker refused to allow a vote on

Prime Minister Boris Johnson's Brexit divorce deal, suggesting

Johnson faces further problems in the Brexit ratification.

Johnson was hit in parliament on Saturday by opponents who

demanded a change to the sequencing of the ratification of the

deal, exposing the prime minister to a law that forced him to

request a delay until Jan. 31.

MSCI's world equity index .MIWD00000PUS , which tracks

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

added 0.7%, while the S&P 500 .SPX index was up 0.5%.

Investors in Asia earlier were boosted by comments on Friday

by Chinese Vice Premier Liu He that Beijing will collaborate

with the United States to address mutual concerns on the trade

war. U.S. President Donald Trump had also struck an optimistic

tone on Friday, saying he thought a trade deal would be signed

before an Asia-Pacific Economic Cooperation meeting in Chile

next month. "Any kind of positive development on trade just gets people

a little excited, although it is too optimistic to believe that

they will reach a whole trade deal as early as mid-November,"

said Robert Pavlik, chief investment strategist at SlateStone

Wealth LLC in New York.

The 2020 U.S. presidential election was also influencing the

talks, investors said, with Trump looking to avoid the

possibility of tariffs imposed by China hurting his voters.

Stocks investors are also gearing up for high-profile

earnings reports this week from such companies as Microsoft Corp

MSFT.O and Amazon.com Inc. AMZN.O

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

23 points, or 0.09%, to 26,793.2, the S&P 500 .SPX gained

15.29 points, or 0.51%, to 3,001.49 and the Nasdaq Composite

.IXIC added 60.40 points, or 0.75%, to 8,149.95.

The dollar was heading toward its worst month since January

2018 amid sterling's gain.

Against the dollar, sterling GBP= was last up 0.1% in

North American trade, having earlier broken above $1.30 for the

first time in 5-1/2 months. The euro was 0.18% higher against

the dollar EUR= , having also been lifted by Brexit optimism

this month by 2.23%. In the U.S. bond market, benchmark 10-year notes US10YT=RR

last fell 11/32 in price to yield 1.787%, from 1.75% late on

Friday. In commodities, U.S. crude CLcv1 fell 1.1% to $53.19 per

barrel and Brent LCOcv1 was last at $58.60, down 1.38% on the

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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