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GLOBAL MARKETS-Stocks, emerging market currencies rise on planned U.S.-China trade talks

Published 2018-08-16, 03:17 p/m
Updated 2018-08-16, 03:20 p/m
GLOBAL MARKETS-Stocks, emerging market currencies rise on planned U.S.-China trade talks

* Graphic: World FX rates in 2018 http://tmsnrt.rs/2egbfVh

* Lira rises against dollar as Turkey reassures investors

* EM currencies rebound as lira and yuan steady

By April Joyner

NEW YORK, Aug 16 (Reuters) - U.S. stocks and emerging market currencies rebounded on Thursday after China said it will hold trade talks with the United States later in August and Turkey's lira continued its recovery.

China said that a delegation led by its vice commerce minister would travel to the United States for talks on Aug. 21 and 22, raising hopes that Beijing and Washington may resolve the escalating tariff war that has roiled financial markets since early March. Chinese yuan recovered from its weakest level since January 2017, and the dollar pared losses from earlier in the day. news of China coming back to the negotiating table is providing relief and you are starting to see markets stabilize a little bit," said Shawn Cruz, manager of trader strategy at TD Ameritrade in Chicago.

The Turkish lira built upon Wednesday's gains, when Qatar pledged to invest $15 billion in Turkey. Other emerging market currencies, such as Brazil's real and Mexico's peso, also rose. EMRG/FRX

The Turkish lira TRY= rose 2.7 percent to 5.80 per dollar.

On Thursday, Turkish Finance Minister Berat Albayrak assured international investors on a conference call that the country would emerge stronger from its currency crisis and that its banks were healthy. prices climbed as well, though MSCI's index of emerging market stocks dipped after having edged up into positive territory earlier in the day.

MSCI's index of world stocks .MIWD00000PUS rose 0.7 percent. Emerging market stocks .MSCIEF dipped 0.2 percent a day after falling more than 20 percent from their January intraday high.

In U.S. markets, the Dow Jones Industrial Average .DJI rose 428.96 points, or 1.7 percent, to 25,591.37, the S&P 500 .SPX gained 26.08 points, or 0.93 percent, to 2,844.45 and the Nasdaq Composite .IXIC added 45.51 points, or 0.59 percent, to 7,819.63.

The pan-European FTSEurofirst 300 index .FTEU3 rose 0.44 percent.

The Shanghai Composite Index .SSEC closed down 0.6 percent, while Hong Kong's Hang Seng index .HSI ended 0.8 percent lower. Hopes that China and the United States could ease trade tensions helped Chinese stocks pare losses. .SS

In currency markets, the dollar index .DXY fell 0.06 percent, while the euro EUR= was up 0.19 percent to $1.1365 after closing Wednesday at its lowest point since July 2017.

The Chinese yuan CNH=EBS gained 1.1 percent to 6.87 per dollar.

Copper CMCU3 rose 1.54 percent to $5,890.50 a tonne, after having confirmed a bear market on Wednesday when it closed 20.9 percent below its recent high reached on June 7. also recovered somewhat after Wednesday's slide, though a weakening outlook for crude demand kept prices in check. U.S. crude CLc1 rose 0.65 percent to $65.43 per barrel and Brent LCOc1 was last at $71.35, up 0.83 percent on the day. Treasury yields rose on the news of U.S.-China trade talks. Benchmark 10-year notes US10YT=RR last fell 6/32 in price to yield 2.8732 percent, from 2.851 percent late on Wednesday. Emerging market shares savaged by bears

https://reut.rs/2KPYGv7

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