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GLOBAL MARKETS-Stocks, emerging market currencies up on U.S.-China trade talk plan

Published 2018-08-16, 12:35 p/m
© Reuters.  GLOBAL MARKETS-Stocks, emerging market currencies up on U.S.-China trade talk plan
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* Graphic: World FX rates in 2018 http://tmsnrt.rs/2egbfVh

* Lira rises past 6 per dollar; Turkish fin. minister holds call

* EM FX breathes easier as dollar dips

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 run.

U.S. equities rose on hopes that Beijing and Washington may resolve a conflict that has roiled financial markets since early March. China on Thursday said a delegation led by its vice commerce minister would travel to the United States for talks. dollar .DXY dipped on news of the U.S.-China talks as investors returned to currencies that had been sold off. The Chinese yuan CNH=EBS gained 1.1 percent to 6.87 per dollar. The euro EUR= rose 0.3 percent after closing the previous day at its lowest point since July 2017.

The Turkish lira TRY= rose 3.0 percent to 5.79 per dollar, supported by Qatar's pledge on Wednesday to invest $15 billion in Turkey.

Other emerging market currencies, such as Russia's ruble and Mexico's peso, also rose. EMRG/FRX

The retreat in the dollar also steadied global equities. MSCI's index of world stocks .MIWD00000PUS rose 0.7 percent. Emerging market stocks .MSCIEF , which on Wednesday had fallen more than 20 percent from their January intraday high, edged up 0.0 percent.

Metals markets moved higher as well. Copper CMCU3 rose 1.97 percent to $5,915.00 a tonne, after having confirmed a bear market on Wednesday, closing 20.9 percent lower than its recent high reached on June 7. around the world have been anxious about the U.S.-China trade dispute and its potential impact on global growth," said Kate Warne, investment strategist at Edward Jones in St. Louis. "Anything that means investors are less concerned about slowing growth in China is good news for emerging markets and good news for parts of the commodities complex."

Turkish Finance Minister Berat Albayrak held a conference call in which he assured international investors that the country would emerge stronger from its currency crisis and that its banks were healthy. Albayrak also said Turkey had no plans to seek help from the International Monetary Fund or impose capital controls to stop money flowing abroad. not seeing any sign of change in economic policy, but the absence of new bad news is good for the markets," Warne said of Turkey.

In U.S. markets, the Dow Jones Industrial Average .DJI rose 401.82 points, or 1.6 percent, to 25,564.23, the S&P 500 .SPX gained 28.4 points, or 1.01 percent, to 2,846.77 and the Nasdaq Composite .IXIC added 66.32 points, or 0.85 percent, to 7,840.43.

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

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

Japan's Nikkei average .N225 closed 0.1 percent lower in choppy trade. .T

Oil also recovered somewhat after Wednesday's slide, though a weakening outlook for crude demand kept prices in check. U.S. crude CLc1 rose 0.54 percent to $65.36 per barrel and Brent LCOc1 was last at $71.20, up 0.62 percent on the day. Treasury yields were steady after edging higher overnight on the news of U.S.-China trade talks. Benchmark 10-year notes US10YT=RR last fell 9/32 in price to yield 2.8822 percent, from 2.851 percent late on Wednesday.

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