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Stocks rose and bonds fell on speculation the U.S. and China will reach a deal that avoids tariffs due to take hold in 11 days.
The S&P 500 Index halted a three-day slide after Bloomberg News reported negotiators are getting near an agreement on the amount of tariff relief in a phase-one accord between the world’s two largest economies. The equity gauge slumped on Tuesday after President Donald Trump downplayed the urgency of a deal. Treasury 10-year yields climbed after posting the biggest decline since August. The dollar dropped. Oil rallied.
Investors are watching for any signs of progress in talks between Washington and Beijing as worries increase that Trump may slap more tariffs on China this month. A flood of trade news has whipsawed global markets this week, with the U.S. also threatening levies on France after hitting steel from Brazil and Argentina. American equities reached record highs last month, driven in part by optimism that at least an initial trade deal was in the offing.
Elsewhere, the euro rose after a manufacturing report showed the single-currency economy is still expanding. The British pound touched the highest level against the euro since May 2017 as traders stepped up bets on a win for the Conservatives in next week’s election. Oil jumped before OPEC+ decides on its output-cut policy later this week.
Here are some key events coming up this week:
Germany releases factory-order data for October on Thursday.Saudi Aramco’s initial public offering is scheduled to be priced on Thursday, with Riyadh looking to raise more than $25 billion.Friday brings the U.S. jobs report, where estimates are for non-farm payrolls to rise by 190,000 in November.
These are the main moves in markets:
The S&P 500 rose 0.4% to 3,104.49 at 9:31 a.m. in New York.The Stoxx Europe 600 Index climbed 0.8%.The MSCI Asia Pacific Index fell 0.6%.
The Bloomberg Dollar Spot Index fell 0.2%.The euro added 0.2% to $1.1107.The British pound climbed 0.7% to $1.3087.
The yield on 10-year Treasuries jumped three basis points to 1.74%.Germany’s 10-year yield rose two basis points to -0.33%.Britain’s 10-year yield increased five basis points to 0.72%.
The Bloomberg Commodity Index climbed 0.7%.West Texas Intermediate crude gained 3% to $57.77 a barrel.Gold fell 0.1% to $1,483.60 an ounce.
–With assistance from Adam Haigh, Todd White and Sam Potter.
To contact the reporters on this story: Rita Nazareth in New York at firstname.lastname@example.org;Robert Brand in Cape Town at email@example.com
To contact the editors responsible for this story: Jeremy Herron at firstname.lastname@example.org, Rita Nazareth
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