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GLOBAL MARKETS-Stocks dip as trade worries halt record rally, dollar falls

Published 29/11/2019, 17:36
© Reuters.  GLOBAL MARKETS-Stocks dip as trade worries halt record rally, dollar falls
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(Adds U.S. market open, byline, dateline; previous LONDON)

* MSCI global equity gauge slips from near-record highs

* Wall Street falls as bill on Hong Kong revives trade

worries

* Oil prices pull back ahead of OPEC+ meeting

By Herbert Lash

NEW YORK, Nov 29 (Reuters) - Oil prices slumped and a gauge

of global equity markets on Friday edged away from an all-time

high it was near breaching earlier in the week as doubts

simmered over the outlook for signing an initial deal to ease

U.S.-China trade tensions.

Gold prices rose and stocks on Wall Street slipped after

China warned on Thursday it would take "firm counter measures"

against U.S. President Donald Trump's decision to ratify a bill

backing protesters in Hong Kong. "It is definitely a concern that the signing of the Hong

Kong bill will be seen as an impediment to an agreement," said

Rick Meckler, partner at Cherry Lane Investments in New Vernon,

New Jersey.

"At this point, investors are also using this as an

opportunity to take some profits," Meckler said.

MSCI's all-country world index .MIWD00000PUS , which

tracks shares in 49 countries, shed 0.39%, or about 3 points

lower than a record peak of 5550.63 it established in January

2018.

Country indices for Germany .GDAXI and France .FCHI

traded near break-even but the pan-European STOXX 600 index

.STOXX lost 0.34%.

The dollar fell from a six-week peak against a basket of

currencies as the still unsigned U.S.-China trade deal kept

investors on edge at the end of a holiday-shortened week due to

the Thanksgiving holiday on Thursday and early close on Friday.

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

86.62 points, or 0.31%, to 28,077.38. The S&P 500 .SPX lost

7.85 points, or 0.25%, to 3,145.78 and the Nasdaq Composite

.IXIC dropped 20.17 points, or 0.23%, to 8,685.00.

The MSCI world index has climbed 2.5% this month, its third

straight month of gains, helped in part by hopes the world's two

biggest economies are moving toward a resolution. The trade war

has roiled financial markets and disrupted supply chains.

The index is up over 20% this year, helped by lower interest

rates and injections of government stimulus around the world.

Gold was on track to post its biggest monthly decline in

three years as investors sought clarity on the U.S.-China trade

front.

Spot gold XAU= added 0.3% to $1,462.38 an ounce.

The dollar index .DXY fell 0.09%, with the euro EUR= up

0.08% to $1.1016. The Japanese yen JPM= was flat versus the

greenback at 109.53 per dollar.

Euro zone inflation data was the main piece of economic data

in investors' sights in Europe.

Inflation accelerated faster than expected in November,

likely comforting European Central Bank policymakers - even if

some factors pushing up prices may be temporary. The latest "flash" data showed annual inflation jumped to 1%

this month from 0.7% in October, outpacing expectations for

0.9%, as volatile food prices rose more than predicted.

Germany's benchmark 10-year Bund yield was last at -0.36%

DE10YT=RR , little changed on the day and holding above

one-month lows hit the previous day.

French and Dutch yields were also off lows hit this week as

investors fretted about U.S.-China trade talks.

Benchmark 10-year notes US10YT=RR fell 6/32 in price to

yield 1.7878%.

Oil prices dipped in muted activity on the because of the

U.S. Thanksgiving holiday while OPEC watchers expect an

extension to a pact to throttle oil output beyond March but no

deeper cuts to be decided by the producer group and its allies.

Brent crude futures LCOc1 were down $1.28 at $62.59 a

barrel while West Texas Intermediate (WTI) futures CLc1 were

down $2.22 cents at $55.89.

MSCI ACWI, MSCI AXJ Nov 29 2019 https://tmsnrt.rs/2XX6DXk

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