(Adds U.S. market open, byline, changes dateline; previous
LONDON)
* Wall Street falls on renewed doubts about a trade deal
* Investors weary amid mixed messages from Trump
* Dollar retreats on recent poor U.S. economic data
* Pound romps higher on hopes election will allow smooth
Brexit
By Herbert Lash
NEW YORK, Dec 5 (Reuters) - The dollar slid and global
equity markets faltered on Thursday as investors dismissed solid
economic data and again fretted about the likelihood of a "phase
one" trade deal before a new round of U.S. tariffs on Chinese
imports begins in 10 days.
U.S. Treasury yields rose on reports indicating a resilient
economy, including a fall in weekly jobless claims and a decline
in the U.S. trade deficit, which suggested trade could
contribute to growth in the fourth quarter.
But gold edged higher as mixed messages on the U.S-China
trade negotiations stirred uncertainty. Investors have struggled
to understand U.S. President Donald Trump's position on trade
during his London visit for the NATO summit. Trump said talks
with China were going "very well" at one meeting while warning
at another that a deal may come only after U.S. elections in
November 2020.
In addition to the conflicting statements on trade, and with
impeachment hearings in Congress, some investors see Trump as
perhaps being weakened slightly, said Rick Meckler, a partner at
Cherry Lane Investments, a family investment office in New
Vernon, New Jersey.
U.S. tariffs on about $156 billion of Chinese imports that
are set to begin Dec. 15, and Trump suggesting he would slap
tariffs on French imports, have created uncertainty, he said.
"If the (China) tariffs go into effect, and if we start new
trade wars with Europe, most investors will be looking to reduce
their stock exposure," Meckler said. "With that period nearby,
investors are reluctant to commit to new purchases."
MSCI's gauge of stocks across the globe .MIWD00000PUS
gained 0.13%, while the pan-regional STOXX 600 index .STOXX in
Europe lost 0.08%.
On Wall Street, the Dow Jones Industrial Average .DJI fell
45.75 points, or 0.17%, to 27,604.03. The S&P 500 .SPX lost
2.72 points, or 0.09%, to 3,110.04 and the Nasdaq Composite
.IXIC dropped 7.44 points, or 0.09%, to 8,559.23.
U.S. economic reports countered data earlier this week that
showed manufacturing activity contracted for a fourth straight
month in November, a slowdown in growth in the services sector
and a drop in construction spending in October.
The dollar fell for a fifth straight session as some traders
worried about the week's economic data. A stronger euro and
strengthening British pound also hurt the greenback.
Sterling has gained more than 1.5% this week against the
dollar as the ruling Conservative Party will likely win a
majority in next week's election and end 3-1/2 years of
Brexit-related uncertainty by taking Britain out of the European
Union.
The dollar index .DXY fell 0.25%, with the euro EUR= up
0.23% to $1.1101. The Japanese yen strengthened 0.19% versus the
greenback at 108.68 per dollar.
Sterling GBP= was last trading at $1.316, up 0.44% on the
Investors remained focused on how much damage the trade war
is causing around the world and whether the signs of economic
stabilization seen in the euro zone will continue.
German industrial orders fell unexpectedly and retail sales
in the euro zone fell at their sharpest rate this year in
October. Overall, the euro zone economy grew at a modest pace in
the third quarter.
Germany's blue-chip index .GDAXI , home to major industrial
exporters, fell 0.48%.
German 10-year bond yields rose slightly more than 2 basis
points to -0.2930 percent DE10YT=RR . Other core government
bond yields also moved between 1 and 2 bps BE10YT=RR .
The benchmark 10-year U.S. Treasury note US10YT=RR fell
5/32 in price to yield 1.7965%.
Oil prices rose on expectations the Organization of the
Petroleum Exporting Countries and allied oil producers will
deepen production cuts in an effort to prop up prices and
prevent a glut next year.
Brent crude LCOc1 futures rose 39 cents to $63.39 a
barrel. U.S. crude CLcv1 rose 0.27% to $58.59 a barrel.
HSBC chart on Asia earnings Dec 5, 2019 https://tmsnrt.rs/2RkYIC0
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