Renewed trade deal doubts clip global stock rally, oil wavers


“I’m less convinced that we’re headed for a durable trade peace with China,” he said.

“It’s very difficult of course to forecast what this administration will or will not agree to, but it’s going to be hard to keep the peace going into an election year,” Smart said. “People are still pretty pessimistic.”

MSCI’s gauge of stocks across the globe shed 0.18 per cent but remained less than 2 per cent from an all-time high set in January 2018. The pan-European STOXX 600 index closed down 0.28 per cent, snapping a five-day winning streak, while Germany’s trade-sensitive DAX index fell 0.46 per cent.

Wall Street end higher

Despite the uncertainty about the deal, stocks on Wall Street still ended higher overnight, with the S&P 500 hitting a record closing high as investors brushed aside doubts about the progress of the trade talks.

The Dow Jones Industrial Average edged up 5.9 points, or 0.02 per cent, to 27,680.7, the S&P 500 gained 7.84 points, or 0.25 per cent, to 3,093.02 and the Nasdaq Composite added 40.80 points, or 0.48 per cent, to 8,475.31.

Earlier in Asia, shares retreated from six-month highs .

Given the volatility around the US-China trade saga, it’s hard to be short over the weekend. The turn of a phrase could restore the very hopes that were dashed just last night over a deal being struck.

John Kilduff, partner at Again Capital

Investor sentiment is likely to continue to support risk assets as efforts are made to reach a trade deal, said Brian Daingerfield, head of G10 FX strategy at Natwest Markets in Stamford, Connecticut.

“The fact that there is some discussion of moving existing tariffs leans more positive,” Daingerfield said.

The dollar index rose 0.19 per cent, with the euro down 0.26 per cent to $US1.102. The Japanese yen strengthened 0.13 per cent versus the greenback at 109.15 per dollar.

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US Treasury yields traded mostly below three-month highs while Germany’s 10-year bond yield slid from five-month highs.

The yield on benchmark 10-year German bunds was one basis point lower at -0.26 per cent.

Benchmark 10-year US Treasury notes fell 3/32 in price to push their yield up to 1.9312 per cent.

Gold extended losses to a three-month low and were on track for their biggest weekly decline in almost three years.

US gold futures settled down 0.2 per cent at $US1,462.90.

Oil prices pared losses after earlier falling more than 1 per cent following Trump’s comments.

Benchmark Brent crude fell 80 cents to $US61.49 a barrel while West Texas Intermediate (WTI) crude rose 9 cents to settle at $US57.24 a barrel.

“Given the volatility around the US-China trade saga, it’s hard to be short over the weekend,” said John Kilduff, a partner at Again Capital. “The turn of a phrase could restore the very hopes that were dashed just last night over a deal being struck.”

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