* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Ritvik Carvalho
LONDON, Nov 25 (Reuters) - World shares staged a cautious
rally on Monday as investors held out for some progress in
U.S.-China trade talks, while the dollar dipped after its latest
rally on the back of strong U.S. economic data.
The MSCI All-Country World Index .MIWD00000PUS , which
tracks shares across 47 countries, was up 0.2% by midday in
London.
European shares rose for the second straight session
following reports that Washington and Beijing were nearing a
trade agreement. The pan-European STOXX 600 index .STOXX was
up 0.7% at 1200 GMT, led by trade-sensitive mining firms. .EU
Britain's FTSE100 .FTSE index was up 0.85%, Germany's DAX
.GDAXI rose 0.5%, and France's CAC40 index .FCHI was up
0.4%.
A Chinese state-backed newspaper reported that China and the
United States were "very close" to an initial trade agreement,
adding to optimism from Friday, when the presidents of both
countries reiterated their desire for a deal. China said on Sunday it would seek to improve protections
for intellectual property rights, including raising the upper
limits for compensation for rights infringements. "China being prepared to look at intellectual property is
obviously the catalyst for a nice move higher, or a return to
the highs earlier this month," said Michael Hewson, chief
markets analyst at CMC Markets in London.
Earlier in Asia, MSCI's broadest index of Asia-Pacific
shares outside Japan .MIAPJ0000PUS bounced 0.7%, after losing
0.4% last week.
Japan's Nikkei .N225 firmed 0.7%, while Australian stocks
.AXJO rose 0.5% and Shanghai blue chips .CSI300 rose 0.3%.
E-Mini futures for the S&P 500 ESc1 added 0.2%. .N
On Saturday, U.S. National Security Adviser Robert O'Brien
said an initial trade agreement with China was still possible by
the end of the year, though he said Washington would not turn a
blind eye to what happens in Hong Kong. The comments added to worries that a Chinese crackdown on
anti-government protests in Hong Kong could complicate the
talks.
"A 'phase one' deal is now priced into markets; there isn't
much upside that will come from that unless they announce
something like a complete rollback of the tariffs imposed, (but)
that doesn't really seem likely," said Simona Gambarini, markets
economist at Capital Economics.
'LEAST DIRTY'
In currency markets, the dollar EUR=D3 was steady near a
10-day high against the euro hit after its rally on Friday when
U.S. manufacturing surveys beat forecasts, just as European
Union numbers disappointed. FRX/
Rising Germany business morale in November did not help the
euro, which traded 0.1% lower at $1.1014. Munich-based Ifo's
business climate index rose to 95.0 in November from 94.7 in
October. The November reading was in line with a Reuters
consensus forecast. The index that measures the dollar against a basket of
currencies was flat. .DXY
European Central Bank President Christine Lagarde on Friday
called on euro zone governments to strengthen domestic demand.
Federal Reserve Chair Jerome Powell speaks later on Monday
and is expected to underline the steady outlook for rates given
the better economic figures.
Spot gold was 0.34% lower at $1,457.13 per ounce XAU= .
Oil prices held above the $63 per barrel mark. O/R
Brent crude LCOc1 futures were flat at $63.37, while U.S.
crude CLc1 fell 0.1% to $57.72 a barrel.