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GLOBAL MARKETS-Stocks, dollar rise as Trump remarks ease China trade tensions

Published 26/08/2019, 16:59
© Reuters.  GLOBAL MARKETS-Stocks, dollar rise as Trump remarks ease China trade tensions
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(Updates to open of U.S. markets, changes byline, dateline;

previous LONDON)

* Stocks rebound after tough Asian session

* Offshore yuan hits record low, then recovers somewhat

* Treasuries, gold supported despite bounce in equities

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

By April Joyner

NEW YORK, Aug 26 (Reuters) - A global gauge of equities

rose on Monday and the dollar recovered from earlier losses as

U.S. President Donald Trump said Chinese officials had contacted

Washington about resuming trade negotiations, after signs of

escalation in the U.S.-China trade dispute had roiled markets

earlier in the day.

Trump's comments followed Chinese Vice Premier Liu He's

remarks that China was willing to resolve the trade dispute

through "calm" negotiations. European stocks bounced off their

lows upon the easing of rhetoric between Washington and Beijing,

and U.S. stocks opened higher. "The sentiment today is conciliatory. The president is

trying to walk back," said Art Hogan, chief market strategist at

National Securities in New York, referring to Trump.

"Whether or not he has a phone call with China doesn't

matter," Hogan added. "The point is that he is attempting to

keep the September meeting scheduled and get back to the

negotiating bit."

The dollar also reversed course to trade higher. The Chinese

yuan, which had fallen to an 11-year low in the onshore market

and hit a record low in the offshore market, also recovered

somewhat. Previously, Asian equity markets had plummeted and European

stocks had appeared set to follow suit after China and the

United States announced further tariffs on each other's exports.

On Friday, Trump announced an additional duty on some $550

billion of targeted Chinese goods, hours after China unveiled

retaliatory tariffs on $75 billion worth of U.S. goods.

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

190.17 points, or 0.74%, to 25,819.07, the S&P 500 .SPX gained

20.99 points, or 0.74%, to 2,868.1 and the Nasdaq Composite

.IXIC added 70.02 points, or 0.9%, to 7,821.78.

The pan-European STOXX 600 .STOXX ended little changed,

while the MSCI All-Country World Index .MIWD00000PUS gained

0.12%.

Even as equities recovered from earlier declines, some

safe-haven assets remained well supported. U.S. Treasury yields

dipped, while spot gold XAU= added 0.2% to $1,529.81 an ounce.

Benchmark 10-year Treasury notes US10YT=RR last rose 2/32

in price to yield 1.5216%, from 1.527% late on Friday.

In currency markets, however, the safe-haven Japanese yen

JPY= fell 0.5% to 105.95 against the dollar after having

rallied to a new seven-month high of 104.46 yen per dollar.

The dollar index .DXY rose 0.36%.

In the offshore market, the Chinese yuan CNH= was last

down 0.5% at 7.1677 per dollar.

In oil markets, U.S. crude CLcv1 rose 0.24% to $54.30 per

barrel and Brent LCOcv1 was last at $59.22, down 0.2% on the

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