Global shares climb on subdued merchants, sterling yo-yos as PM ends

By Karin Strohecker

LONDON (Reuters) ̵[ads1]1; World stocks were higher on Friday, and oil prices jumped after comments by President Donald Trump urged advances in trade negotiations in the US and China, while UK Prime Minister Theresa Mays resignation briefly sent sterling fluctuations venison.

Persistent concerns about the health of the world economy linked to trade tensions have hit global markets this week, with the MSCI All Country index on line for more than 1% fall in the third week in red. It will mark its longest tapestry since a route in December.

The index rose by 0.2% on Friday following today's Trump comments, which said problems with China's Huawei Technologies Co. Ltd could be resolved within the framework of a broader trade. However, no high-level calls have been planned, and Trump also labeled the telecommunications company "very dangerous".

With fly-to-security plays remaining dominant, Asian bourgeoisie was torn between fears of a more prolonged trade war between the United States and China and hopes the world's two largest economies will reach an agreement soon.

China's mainland blueprint and Hong Kong stocks rose around 0.3%, while Japan's Nikkei fell 0.2%. [.SS]

The European stock markets were more concerned. The pan-regional Euro Stoxx 600 index, Germany's DAX, France's CAC and the UK's FTSE 100 all rose around 0.8 percent. [.EU] [.L]

"It may be a step too far that there is optimism over a trade deal, but there may be a bit more optimism about how the talks go," said Investec chief economist Philip Shaw.

Wall Street also saw the line for a postponement after large indices tumbled more than 1% on Thursday as dire economic data worsened trade war fear [.N]. S & P 500 e-minis pointed to an increase of 0.6% at the opening.

With yields in demand, 10-year US government bond yields hit 2.292% overnight, the lowest level since mid-October 2017. The dividend was last at 2.3220%.

"State investment with a fixed income guarantee is currently the best choice, and although we have had a recovery in European stock markets this morning, there has not been much of a retracement at all in German bottom or British guilds," Shaw said.

Key parts of the US yield curve were reversed and flashed another warning sign about the health of the world's largest economy.

US Growth in production spiked in May, showing the data on Thursday, measuring its weakest activity level for nearly a decade, while new orders fell for the first time since August 2009.

"Fear is now that economic recovery from the poor second half of 2018 may die before it even emerges," says Peter Schaffrik, global macro strategist at RBC Capital Markets.

Washington last week effectively banned US firms doing business with Huawei, the world's largest network provider, referring to national security concerns.

On Thursday, the US Commerce Department said it was proposing a new rule to impose anti-subsidy obligations on products from countries that underestimate their currencies, in another move that could penalize Chinese products.

Friday's Foreign Ministry condemned Washington's comments on Huawei.


In the UK, may announce his resignation, send the pound on a roller coaster ride. It went up almost half to the dollar after the announcement, but the gain was short-lived, and it was then traded back to $ 1,2672, not far from today's recession against the euro.

Mai is probably succeeded by a Eurosceptic leader, potentially increasing the chances of a non-deal Brexit.

On Thursday, the pound had its 14th consecutive day with losses against the euro, the longest lost knit on record.

Elsewhere in foreign exchange markets, the dollar index that measures it against six major rivals, had been high at 98,371 on Thursday US time. It was last noted a touch weaker at 97,814.

The euro, which on Thursday dropped to levels last seen in May 2017 as a recovery in the euro area business, was weaker than expected, trading at $ 1.1182 on Friday.

Other large currencies were relatively quiet. The dollar held at 109.59 yen, flat on the day.

Oil prices were achieved in connection with OPEC supply savings and tensions in the Middle East. Raw futures tumbled on Thursday as trading tensions dampened demand prospects, with the benchmarks posting their biggest daily fall for six months. [O/R]

U.S. crude was $ 58.7 per barrel, up 1.4%, after Thursday's 5.7% drop that took it to the lowest for two months. Burned raw futures recovered 1.3% to $ 68.65 per barrel, having fallen 4.6% in the previous session.

(Reporting by Karin Strohecker, further reporting by Dhara Ranasinghe, Tomo Uetake and Noah Sin, editing by John Stonestreet)

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