Constellation Energy and Vistra stock surge after PJM capacity auction results
(Adds close of U.S. markets)
* Dollar rebounds, Wall Street fails to rise above
break-even
* Germany's trade sensitive DAX closes little changed
* Oil gains on Reuters report OPEC likely to extend output
By Herbert Lash
NEW YORK, Nov 21 (Reuters) - The dollar rebounded and global
equity markets edged lower on Thursday as efforts by China to
smooth the path forward in U.S.-Sino trade talks helped sooth
investor sentiment, though fears remained that a phase one deal
might not occur until next year.
Oil prices rose to a two-month high after Reuters reported
the Organization of the Petroleum Exporting Countries and its
allies are likely to extend existing output cuts until mid-2020.
Yields on government debt rose, snapping three sessions of
declines, bolstered by China saying it was willing to work with
the United States to resolve core trade concerns, which
rekindled some hope for a bilateral deal. A Wall Street Journal report that said China had invited top
U.S. trade negotiators for a new round of face-to-face talks in
Beijing also lifted sentiment. Germany's trade-sensitive DAX index .GDAXI pared most
losses to close 0.16% lower, while the Dow Industrials and S&P
500 index also pared early losses to briefly trade above
break-even, before closing lower.
"This just shows that the trade deal is not dead and that we
will get some sort of an extended truce, which is a positive,"
said Peter Cardillo, chief market economist at Spartan Capital
Securities in New York.
"What we're going through now is a market beginning to
realize the daily rhetoric of the trade news – one day positive,
one day negative – is beginning to wear off," he said.
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
0.3%, while the pan-European STOXX 600 index .STOXX lost
0.40%.
On Wall Street, the Dow Jones Industrial Average .DJI fell
54.8 points, or 0.2%, to 27,766.29. The S&P 500 .SPX lost 4.92
points, or 0.16%, to 3,103.54 and the Nasdaq Composite .IXIC
dropped 20.52 points, or 0.24%, to 8,506.21.
The latest news on the trade deal came after headlines
earlier this week suggested ongoing talks were unraveling.
Reuters reported on Wednesday that negotiations to finalize
a deal may extend into next year as Beijing presses for more
extensive tariff rollbacks and the Trump administration counters
with heightened demands of its own. The yield of benchmark German and U.S. bonds ended a
three-day streak of declines to edge higher.
German 10-year bond yields, considered a euro zone
benchmark, rose more than 2 basis points to -0.325%.
The benchmark 10-year U.S. Treasury note US10YT=RR fell
9/32 in price to push yields up to 1.7688%.
The dollar firmed late in the session.
"Right now the dollar is very trade headline dependent,"
said Alfonso Esparza, senior currency analyst at OANDA in
Toronto.
The dollar index .DXY rose 0.04%, with the euro EUR=
down 0.12% to $1.1059. The Japanese yen JPY= strengthened
0.02% versus the greenback at 108.60 per dollar.
Brent crude LCOc1 settled up $1.57 at $63.97 a barrel,
while West Texas Intermediate (WTI) crude CLc1 gained $1.57 to
settle at $58.58 a barrel.
Both benchmarks had fallen earlier in the session.
Gold prices eased. U.S. gold futures Gcv1 fell 0.7% to
settle at $1,463.60 per ounce.
Global markets https://tmsnrt.rs/2KG7whL
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>