Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Stocks gain on U.S.-China trade truce hopes, U.S. dollar flat

Published 2019-06-27, 03:04 p/m
© Reuters.  Stocks gain on U.S.-China trade truce hopes, dollar flat
EUR/USD
-
USD/JPY
-
XAU/USD
-
US500
-
DJI
-
DX
-
GC
-
LCO
-
CL
-
IXIC
-
DE10YT=RR
-
US10YT=X
-
SOX
-
STOXX
-
FTEU3
-
MIWD00000PUS
-
DXY
-
SPSY
-
SPXHC
-

* Wall Street edges higher as tech, financials rise

* Dollar trades flat as market awaits news from G20 summit

* Crude prices slip ahead of G20, OPEC meeting

By Herbert Lash

NEW YORK, June 27 (Reuters) - Global equity markets gained and the dollar held steady on Thursday ahead of the G20 summit where a much-anticipated meeting of U.S. President Donald Trump and Chinese President Xi Jinping may lead to a truce in the U.S.-China trade war.

The world's two largest economies have agreed to a tentative truce in their trade dispute before the planned meeting on Saturday, Hong Kong's South China Morning Post reported, citing sources. report rekindled investor interest in riskier assets and weighed on safe-havens as it dialed down fears that Trump would impose new tariffs on $300 billion in Chinese goods.

A Wall Street Journal report that Xi planned to present Trump with a set of terms Washington should meet before Beijing is ready to settle their dispute tempered optimism. continue to be very skeptical that the U.S., at least this current administration, will reach a deal with China," said Kristina Hooper, chief global market strategist at Invesco in New York.

"I can't find any compelling reasons why China would make real concessions to the U.S.," Hooper said.

The dollar index .DXY , which tracks the dollar against the euro, Japanese yen, sterling and three other currencies, traded slightly lower at 96.205. The dollar was little changed against the euro EUR= and the yen JPY= .

MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.46%, while both the pan-European STOXX 600 index .STOXX and the FTSEurofirst 300 index .FTEU3 of leading regional shares closed basically at break-even.

Stocks on Wall Street gained.

The Dow Jones Industrial Average .DJI rose 33.31 points, or 0.13%, to 26,570.13. The S&P 500 .SPX gained 12.85 points, or 0.44%, to 2,926.63 and the Nasdaq Composite .IXIC added 57.31 points, or 0.72%, to 7,967.28.

Healthcare .SPXHC rose 0.82% and financials .SPSY gained 0.78%, with big lenders leading the charge ahead of results of the second part of the Federal Reserve's annual stress test for banks.

Semiconductor companies, which have a sizable revenue exposure to China, traded higher, with the Philadelphia Semiconductor index .SOX rising 1.55%.

U.S. Treasury debt yields fell on concerns that trade discussions between the United States and China on Saturday may be more complicated than previously expected.

News headlines suggest that "the meeting in Osaka is going to be a lot more tense than some of the initial optimism suggested," said Ian Lyngen, head of U.S. rates strategy at BMO Capital Markets in New York.

The benchmark 10-year U.S. Treasury note US10YT=RR rose 12/32 in price to push its yield lower to 2.0054%.

German government bond yields fell back toward record lows after data showed annual inflation in the euro zone's biggest economy remained well below the European Central Bank's target.

Germany's 10-year bond yield was down 1.2 basis points at minus 0.32% DE10YT=RR , nearing Tuesday's record low of minus 0.336%.

Oil prices settled little changed, weighed by concerns over whether the G20 summit will produce a breakthrough on trade and perceptions that supply is ample despite prospects for continued curbs by the Organization of Petroleum Exporting Countries.

Brent crude LCOc1 , the global benchmark, rose 6 cents to settle at $66.55 a barrel. U.S. West Texas Intermediate crude CLc1 settled up 5 cents to $59.43.

U.S. gold futures GCcv1 settled 0.2% lower at $1,412 an ounce.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Asia stock markets

https://tmsnrt.rs/2zpUAr4 Asia-Pacific valuations

https://tmsnrt.rs/2Dr2BQA

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.