* China's yuan on track for biggest monthly decline since
* Wall St stocks lower; German real estate lifts European
shares
* Euro falls on expectations of aggressive ECB easing
(New throughout, updates prices and market activity to
mid-afternoon in U.S. markets)
By April Joyner
NEW YORK, Aug 30 (Reuters) - Hopes for a thaw in the
U.S.-China trade war helped a gauge of global stocks edge higher
on Friday despite weakness on Wall Street, though caution over
pending U.S. tariffs on Chinese goods put the yuan on track for
its biggest monthly decline in 25 years.
Statements from U.S. President Donald Trump and China's
commerce ministry on Thursday that the countries were engaged in
trade talks brought some respite to equities, which have been
roiled by the escalating trade war. The pan-European STOXX 600 .STOXX ended 0.7% higher,
helped by a surge in German real estate shares. The MSCI
All-Country World Index .MIWD00000PUS rose 0.19%.
On Wall Street, the Dow Jones Industrial Average .DJI fell
22.89 points, or 0.09%, to 26,339.36, the S&P 500 .SPX lost
4.5 points, or 0.15%, to 2,920.08 and the Nasdaq Composite
.IXIC dropped 36.01 points, or 0.45%, to 7,937.38.
U.S. markets will be closed on Monday for the Labor Day
holiday.
Despite the day's gains, MSCI's gauge of global stocks was
on track for its second monthly loss of the year and its biggest
August percentage decline since 2015.
Some market watchers expressed caution given the fluctuating
rhetoric. Despite recent conciliatory comments, the Trump
administration on Sunday is scheduled to begin collecting 15%
tariffs on more than $125 billion in Chinese imports, including
smart speakers, Bluetooth headphones and many types of footwear.
China's yuan CNH= fell 0.30% to 7.1637 per dollar and was
on track for its weakest month since Beijing's currency reform
in 1994. New trade developments ahead of the re-opening of U.S.
financial markets on Tuesday could sway sentiment, said Ken
Polcari, managing principal at Butcher Joseph Asset Management
in New York.
"Tariffs are being implemented on Sept. 1 from the U.S.,"
Polcari said. "The fact is (China) very well could retaliate,
and no one should be surprised if they do. With an extra day of
no trading, it could be that kind of news that causes a
disruption to the market."
U.S. Treasury yields treaded water, with the yield curve
between 2-year and 10-year notes US2US10=TWEB still inverted,
seen as a signal that a recession is likely in one to two years.
Benchmark 10-year Treasury notes US10YT=RR last rose 1/32
in price to yield 1.5129%, from 1.516% late on Thursday.
Italian bond yields registered one of their biggest monthly
decline in more than six years after the anti-establishment
5-Star Movement and opposition Democratic Party reached an
agreement on a coalition government. Among currencies, the euro EUR= reached its weakest level
since May 2017 as expectations grew for aggressive easing by the
European Central Bank following weak economic data on Thursday.
The euro was last 0.73% lower at $1.10. The dollar index .DXY rose 0.43%.
The safe-haven Japanese yen JPY= rose 0.23% to 106.26 per
dollar and was on track for its biggest monthly gain since May.
Sterling GBP= fell 0.34% to $1.2146 ahead of a crucial
period for the British parliament before it is suspended ahead
of Britain's scheduled exit from the European Union on Oct. 31.
In commodities, spot gold XAU= fell 0.33% to $1,522.41 an
ounce but was set for its fourth straight month of gains. Silver
XAG= rose 0.52% to $18.33 and was on track for its biggest
monthly percentage gain since June 2016. Oil prices fell on concerns that disruption from Hurricane
Dorian, headed for Florida, could dampen demand. U.S. crude
CLc1 settled 2.84% lower at $55.10 a barrel, while Brent
LCOc1 settled at $60.43 a barrel, down 1.06% on the day.
stocks in Aug https://tmsnrt.rs/2ztDVlL
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