Global equities end higher on the hope of a trade deal with China; rising dollar

NEW YORK (Reuters) – Wall Street stocks posted modest gains on Tuesday as traders hoped the US and China could resolve trade disputes at the upcoming G20 summit.

Oil prices remained weak, while the US dollar, which had benefited from safe-haven securities this year due to heightened uncertainty about world trade, rose against its peers.

White House economic adviser Larry Kudlow said on Tuesday that US President Donald Trump will hold a dinner with Chinese President Xi Jinping at the next G20 meeting in Argentina, suggesting that the two countries can a trade agreement.

The top three US indexes posted a positive performance after spending much of the session in negative territory. Kudlow said it was possible to "turn the page" on a trade war with China.

His remarks followed Trump's remarks Monday, when he said he hoped to move forward with a rise in tariffs on Chinese imports rising to 200 billion dollars. dollars, from 10% to 25%, and reiterated its threat to impose tariffs on all remaining imports from China.

"People want to believe that the G20 will bring something positive," said Robert Pavlik, chief investment strategist at SlateStone Wealth LLC in New York.

"(But) the longer it takes, the more the market fears that it will never happen, or it's just more rhetoric and people are starting to lose confidence."

American stock option traders expect an increase in volatility around the G20 summit.

The index .JJI of the Dow Jones Industrial Average rose 108.49 points, or 0.44%, to establish at 24,748.73 points, the index .SPX S & P 500, 8.75 points, or 0.33%, to close at 2,682.2 and the added Nasdaq Composite .IXIC of 0.85 points, or 0.01%, to end at 7,082.70.

European markets opened moderately, but declined as trade progressed. The pan-European STOXX 600 index lost 0.26% and the MSCI global stock index .MMIWD00000PUS gained 1.17%.

Trade concerns have raised the greenback. The .DXY dollar index, which tracks the US dollar against the euro, the yen, the pound sterling and three other currencies, rose 0.3% to 97.369.

"Donald Trump's new pricing threats against China have attracted investors to the US dollar," Lukman Otunuga, research badyst at broker FXTM, said in a note.

The Federal Reserve should be even more attentive to new economic data as its gradual increases in interest rates bring it closer to a neutral stance, the Federal Reserve Vice-President said on Tuesday. Richard Clarida.

Investors will now be interested in Wednesday's speech by Fed Chairman Jerome Powell and the minutes of the November 7-8 Central Bank meeting, to be released on Thursday, to provide further insights on the number of times the Fed should be interested. rates.

The pound sterling collapsed against the dollar and the euro while doubts arose as to the possibility for British Prime Minister Theresa May to reach an agreement on Brexit through the US. a divided Parliament.

Treasury yields fell on Tuesday afternoon after $ 40 billion of new five-year notes were sold at high demand and fears of resurgence of trade tensions between the US and China resumed. The benchmark 10-year government bond yield (US10YT = RR) was down 1.5 basis points from Monday's close of 3.06%.

In commodities markets, oil prices fell, weighed down by uncertainties in the US-China trade war and signs of an increase in global crude oil production. But losses were limited by expectations that crude exporters would agree to cut production at a future OPEC meeting.

US crude oil futures were trading at $ 51.56 a barrel, down 7 cents or 0.14% after slipping to $ 50.30 earlier in the session. Brent LCOc1 s is set at $ 60.21, down 27 cents or 0.45%.

The strong dollar weighed on gold, and gold XAU = slipped 0.62% to $ 1,214.66, the lowest for more than a week.