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GLOBAL MARKETS-Stocks climb on Huawei extension, buoying U.S. Treasuries

Published 18/11/2019, 21:42
© Reuters.  GLOBAL MARKETS-Stocks climb on Huawei extension, buoying U.S. Treasuries
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(Adds oil, gold settlement prices)

* New U.S. 90-day extension to Huawei refuels equity rally

* U.S. Treasury prices rise on equity rally

* World share index less than 1% from record high

* Dollar slips as does crude as trade tensions remain

By Herbert Lash

NEW YORK, Nov 18 (Reuters) - Global equity markets edged

higher on Monday, lifting prices of U.S. government debt, as a

new 90-day extension allowing U.S. companies to do business with

China's Huawei eased the latest spike in investor angst over

U.S.-Sino trade tensions.

The three major U.S. stock indexes set fresh intraday highs

while MSCI's gauge of equity performance worldwide rose to

within 1% of a record peak set in January 2018.

The stock rally reversed earlier losses sparked by

conflicting reports about the outlook for ending the 16-month

trade war between the world's two largest economies that has

weighed on global growth and roiled capital markets.

The U.S. Commerce Department added Huawei Technologies Co

Ltd HWT.UL to an economic blacklist in May, citing security

concerns, but has allowed it to purchase some American-made

goods in a series of 90-day license extensions. Early on Monday, a CNBC report cast fresh doubts about the

prospects for a phase I of a U.S.-China trade deal, saying the

mood in Beijing was pessimistic due to President Donald Trump's

reluctance to roll back tariffs on Chinese imports. The report halted earlier rallies in Europe and Asia after

Chinese state media Xinhua over the weekend said that Washington

and Beijing had held "constructive" talks. "Progress doesn't happen in a straight line and that is

starting to frustrate people today," said Scott Ladner, chief

investment officer at Horizon Investments in Raleigh, North

Carolina. "It feels very herky-jerky."

MSCI's all-country world index .MIWD00000PUS of global

stock performance gained 0.13%.

In Europe, the pan-European STOXX 600 index .STOXX closed

down 0.01% while the FTSEurofirst 300 index .FTEU3 of leading

regional shares fell 0.04%.

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

28.14 points, or 0.1%, to 28,033.03. The S&P 500 .SPX gained

2.04 points, or 0.07%, to 3,122.5 and the Nasdaq Composite

.IXIC added 14.29 points, or 0.17%, to 8,555.12.

The safe-haven Japanese yen gained and gold prices erased

losses to settle slightly higher.

Investors hope that tariffs the United States and China have

imposed on each other's goods will be rolled back as they are

seen as harming global economic growth.

Overnight in Asia, stocks closed higher.

Tokyo's Nikkei .N225 gained 0.49% and China's blue-chip

CSI300 index .CSI300 rose 0.8% after the People's Bank of

China in a surprise move said it was lowering the seven-day

reverse repurchase rate. The dollar index .DXY fell 0.22%, with the euro EUR= up

0.22% to $1.1074. The yen strengthened 0.12% versus the

greenback at 108.65 per dollar.

The price of benchmark 10-year U.S. Treasury notes

US10YT=RR rose 7/32 to push yields down to 1.8101%.

U.S. gold futures GCv1 settled up 0.2% at $1,471.90 an

ounce.

Concerns about plentiful crude supplies in 2020 weighed on

the oil market, which expects the Organization of the Petroleum

Exporting Countries to extend production cuts in early December

to help avoid a new global glut.

Brent crude futures LCOc1 fell 86 cents to settle at

$62.44 per barrel. West Texas Intermediate (WTI) crude CLc1

slid 67 cents to settle down at $57.05 a barrel.

Asia stock markets https://tmsnrt.rs/2zpUAr4

Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA

World markets in 2019 and in November https://tmsnrt.rs/2QuPJh2

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