World shares climb on trade hopes
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[November 25, 2019]
By Ritvik Carvalho
LONDON (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, 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 was up 0.7% at 1200 GMT, led by
trade-sensitive mining firms. [.EU]
Britain's FTSE100 index was up 0.85%, Germany's DAX rose 0.5%, and
France's CAC40 index 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 bounced 0.7%, after losing 0.4% last week.
Japan's Nikkei firmed 0.7%, while Australian stocks rose 0.5% and
Shanghai blue chips rose 0.3%.
E-Mini futures for the S&P 500 added 0.2%.
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.
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Signage is seen outside the entrance of the London Stock Exchange in
London, Britain. Aug 23, 2018. REUTERS/Peter Nicholls/File Photo
"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 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.
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.
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.
Oil prices held above the $63 per barrel mark.
Brent crude futures were flat at $63.37, while U.S. crude fell 0.1%
to $57.72 a barrel.
(Reporting by Ritvik Carvalho; additional reporting by Sagarika
Jaisinghani and Lisa Pauline Mattackal in Bangalore and Wayne Cole
in Sydney, Editing by Angus MacSwan)
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