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(Updates prices after U.S. market open, adds commentary,
changes dateline; previous LONDON)
* U.S. stocks follow Europe higher as U.S. ditches Mexico
tariffs
* Mexican peso on track for biggest daily gain for the year
* Yuan at late-2018 lows; China's May imports disappoint
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Sinéad Carew
NEW YORK, June 10 (Reuters) - Equities around the world rose
on Monday while U.S. Treasury prices fell as risk assets were
back in fashion after the United States shelved plans to impose
tariffs on Mexico, easing worries about the impact of another
trade war on the global economy.
The U.S. dollar gained against a basket of major currencies
while the Mexican peso was on track for its biggest gain against
the dollar since July 2018. The U.S.-Mexico trade and migration deal appeared to give
investors a boost after a disappointing U.S. jobs report on
Friday, sending U.S. government bond yields higher. L2N23H0L8
"Trump's walking back of potential tariffs on Mexican
imports has offered a reprieve, not reversal, of the recent
bullish price action in Treasuries," wrote Ian Lyngen, head of
U.S. rates strategy at BMO Capital Markets.
"It follows intuitively that positive news on one of the
multiple trade war fronts would offset (at least to a small
degree) the building economic apprehension which was furthered
by Friday's disappointing employment data."
The Dow Jones Industrial Average .DJI rose 180.64 points,
or 0.7%, to 26,164.58, the S&P 500 .SPX gained 26.19 points,
or 0.91%, to 2,899.53 and the Nasdaq Composite .IXIC added
133.97 points, or 1.73%, to 7,876.07.
The pan-European STOXX 600 index .STOXX rose 0.20% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.80%.
Emerging market stocks rose 1.54%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 1.32%
higher.
MEXICAN PESO GAINS
With the Mexico spat seemingly resolved, investors will now
focus on whether U.S. President Donald Trump can reach a similar
deal with China. Investors are hoping Trump meets his Chinese
counterpart at the Group of 20 leaders' meeting later this month
to seek a compromise on trade.
In currency trading, the dollar index .DXY rose 0.24%,
with the euro EUR= down 0.16% to $1.1313.
The euro pulled back after sources said European Central
Bank policymakers were open to cutting the ECB's policy rate
should economic growth weaken. The Mexican peso gained 2.32% versus the U.S. dollar at
19.17. China's yuan slipped to its weakest this year after the
country's imports fell the most in nearly three years and as
talks to end the Sino-U.S. dispute remained deadlocked.
Spot gold XAU= dropped 0.9% to $1,328.56 an ounce, after
closing at its highest level since February on Friday.
Oil prices steadied as major producers Saudi Arabia and
Russia had yet to agree on extending an output-cutting deal and
U.S.-China trade tensions continued to threaten demand for
crude. Brent crude LCOc1 futures rose 2 cents to $63.31 a barrel
by 11:02 a.m. EDT (1529 GMT). U.S. West Texas Intermediate (WTI)
crude CLc1 gained 23 cents to $54.22 a barrel.54.39 O/R