* New U.S.-China talks boost trade optimism
* U.S. Treasury yields gain across maturities
* Safe-havens fall on increased risk appetite
* U.S. added more private sector jobs than expected -ADP
(Updates to U.S. afternoon)
By Stephen Culp
NEW YORK, Sept 5 (Reuters) - Stocks worldwide hit one-month
highs and U.S. Treasury yields surged on Thursday as renewed
U.S.-China trade optimism and upbeat U.S. economic data boosted
risk appetite and lured investors away from safe-haven assets.
The announcement that top negotiators from the United States
and China will meet in early October in Washington raised hopes
of a possible resolution to the two countries' brutal trade war
that has shaken markets and wreaked havoc on the global economy.
The news built on Wednesday's tide of optimism after the
British parliament blocked a no-deal exit from the European
Union and Hong Kong scrapped the extradition bill that sparked
riots.
"Yesterday we had two big geopolitical risks diminish, Hong
Kong and Brexit," said Oliver Pursche, chief market strategist
at Bruderman Asset Management in New York. "And today we had
trade, the biggest of them all, diminish.
"It's clear that stock prices are very much correlated and
influenced by the political winds surrounding trade," Pursche
added.
U.S. private payrolls increased in August at their fastest
pace in four months, according to ADP (NASDAQ:ADP), blowing past analyst
estimates ahead of Friday's more comprehensive jobs report from
the Labor Department. A separate report showed the U.S. services industry
rebounded last month to its fastest expansion since February,
bouncing back from a three-year low, according to the Institute
for Supply Management's non-manufacturing purchasing managers
index (PMI). By midafternoon, the Dow Jones Industrial Average .DJI
rose 388.35 points, or 1.47%, to 26,743.82, the S&P 500 .SPX
gained 36.08 points, or 1.23%, to 2,973.86 and the Nasdaq
Composite .IXIC added 119.76 points, or 1.5%, to 8,096.64.
Euro zone and emerging markets stocks charged higher on the
renewed trade hopes. The pan-European STOXX 600 index .STOXX rose 0.72% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
1.11%.
Emerging market stocks rose 1.22%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 1.09%
higher, while Japan's Nikkei .N225 rose 2.12%.
News of the impending trade talks sent U.S. Treasury yields
soaring on hopes that a long-elusive deal might remove an
impediment to growth. Benchmark 10-year notes US10YT=RR last fell 31/32 in price
to yield 1.5636%, from 1.459% late on Wednesday.
The 30-year bond US30YT=RR last fell 73/32 in price to
yield 2.055%, from 1.957% late on Wednesday.
The dollar held its losses against a basket of world
currencies following the upbeat U.S. jobs data. Earlier, the
news of renewed trade talks weighed on the dollar and the yen
while boosting riskier currencies.
The pound sterling, however, rose to its highest level
against the greenback in over a month on hopes that a no-deal
Brexit could be avoided. The dollar index .DXY fell 0.04%, with the euro EUR= up
0.04% to $1.1037.
The Japanese yen weakened 0.50% versus the greenback at
106.94 per dollar, while Sterling GBP= was last trading at
$1.2317, up 0.55% on the day.
The tide of trade optimism and a sharp decrease in U.S.
crude inventories lifted oil prices. U.S. crude CLcv1 rose 0.68% to $56.64 per barrel and Brent
LCOcv1 was last at $61.26, up 0.92% on the day.
Gold prices slid as signs of a trade war thaw and
stronger-than-expected U.S. economic data sent investors to
riskier assets. Spot gold XAU= dropped 2.1% to $1,520.57 an ounce.
Copper CMCU3 rose 1.63% to $5,841.50 a tonne.
Three-month aluminum on the London Metal Exchange CMAL3
rose 0.73% to $1,788.00 a tonne.
GRAPHIC-Global assets in 2019 http://tmsnrt.rs/2jvdmXl
GRAPHIC-World FX rates in 2019 http://tmsnrt.rs/2egbfVh
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