U.S.-China trade hopes lift stocks; oil hits 3-month high
(Updates to U.S. market close)
* Aussie dollar recovers most of Thursday's loss
* Dow Industrials up for ninth consecutive week
* WTI, Brent crude futures hit new 2019 high
By Rodrigo Campos
NEW YORK, Feb 22 (Reuters) - Stocks rose in major markets
across the world on Friday on bets of progress in trade talks
between China and the United States, while crude futures hit
their highest level in more than three months supported by
ongoing supply cuts.
U.S. President Donald Trump said on Friday that there was a
very good chance the United States would strike a deal with
China to end their trade war and that he was inclined to extend
his March 1 deadline to reach an agreement.
U.S. and Chinese negotiators meeting in Washington had made
progress and would extend this week's round of negotiations by
two days, he said.
Main stock indexes on Wall Street rose as the optimistic
trade talk more than offset signs of slower growth in both U.S.
earnings and the economy, with the S&P 500 posting a fourth
consecutive week of gains.
The Dow Jones Industrial Average rose 181.18 points,
or 0.7 percent, to 26,031.81, the S&P 500 gained 17.79
points, or 0.64 percent, to 2,792.67 and the Nasdaq Composite
added 67.84 points, or 0.91 percent, to 7,527.55.
The Dow rose for the ninth consecutive week.
Overnight, shares in Asia were buoyed by a late rally in
Chinese shares, with the main blue-chip index rising
more than 2 percent to a near seven-month high.
Emerging market stocks rose 0.73 percent after touching the
highest level since August. MSCI's broadest index of
Asia-Pacific shares outside Japan closed 0.7
percent higher, while Japan's Nikkei lost 0.18 percent.
Trade talks and a growing number of policy U-turns by global
central banks have propped up equities in recent weeks, although
this week saw the first outflows from emerging market debt
and equity funds since October 2018, Bank of America Merrill
Lynch strategists said, citing EPFR data.
Oil prices touched their highest level in more than three
months, supported by OPEC supply cuts as well as the trade
developments. New record U.S. oil supply, however, limited gains
in post-settle trade.
U.S. crude rose 0.37 percent to $57.17 per barrel
and Brent was last at $67.00, down 0.1 percent on the
In currencies, the U.S. dollar was little changed against a
basket of peers. The dollar index fell 0.05 percent, with
the euro down 0.03 percent to $1.1331.
The Japanese yen strengthened 0.03 percent versus the
greenback at 110.68 per dollar. Sterling was last trading
at $1.3053, up 0.03 percent on the day.
The Australian dollar recovered a day after falling more
than 1 percent after Reuters reported the Chinese port of Dalian
had barred imports of Australian coal indefinitely. China said
on Friday that imports would continue, but customs has stepped
up checks on foreign cargoes.
Separate comments by Reserve Bank of Australia Governor
Philip Lowe that a rate increase may be appropriate next year
also helped to boost the Aussie dollar.
The Aussie dollar recently gained 0.56 percent versus the
greenback at 0.7128.
Despite gains on risky assets, safe-haven U.S. Treasuries
also gained in price. Benchmark 10-year notes last
rose 10/32 in price to yield 2.6536 percent, from 2.688 percent
late on Thursday.
The 30-year bond last rose 18/32 in price to
yield 3.0159 percent, from 3.045 percent late on Thursday.
Spot gold added 0.4 percent to $1,328.20 an ounce.
U.S. gold futures gained 0.21 percent to $1,330.60 an
Copper rose 1.52 percent to $6,477.00 a tonne.
(Additional reporting by Gertrude Chavez-Dreyfuss, Laila
Kearney, Caroline Valetkevitch and Kate Duguid in New York;
Editing by Dan Grebler and Sonya Hepinstall)
First Published: 2019-02-22 02:46:43
Updated 2019-02-22 23:58:11
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