* Stocks worldwide hit one-month highs on 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 market close)
By Stephen Culp
NEW YORK, Sept 5 (Reuters) - U.S. stocks followed worldwide
equities to one-month highs and Treasury yields rose sharply on
Thursday as renewed U.S.-China trade optimism and upbeat U.S.
economic data stoked 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.
"At some point it behooves both countries to reach an
understanding," said Stephen Massocca, senior vice president at
Wedbush Securities in San Francisco. "The Chinese economy is
slowing. They can play the long game but is that in their best
interests?"
But Massocca noted that over the last 16 months, good news
on the trade front can be undone by a tweet.
"Seems like it's risk-on, risk-off depending on where trade
is day-to-day," Massocca said. "We've seen this movie before and
when talks break down you see a flight back to quality and the
market correct."
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). Market participants now look to Friday's closely-watched
jobs report and expected remarks from Federal Reserve chair
Jerome Powell.
The Dow Jones Industrial Average .DJI rose 372.68 points,
or 1.41%, to 26,728.15, the S&P 500 .SPX gained 38.19 points,
or 1.30%, to 2,975.97 and the Nasdaq Composite .IXIC added
139.95 points, or 1.75%, to 8,116.83.
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
1.14%.
Emerging market stocks rose 1.21%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 1.13%
higher, while Japan's Nikkei .N225 rose 2.12%.
News of the impending U.S.-China talks sent U.S. Treasury
yields higher on hopes a trade 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 74/32 in price to
yield 2.0557%, from 1.957% late on Wednesday.
The yen slipped and the dollar edged lower against a basket
of world currencies following the positive trade developments
and upbeat U.S. jobs data.
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 0.05%, with the euro EUR= up
0.03% to $1.1036.
The Japanese yen weakened 0.56% versus the greenback at
107.01 per dollar, while Sterling GBP= was last trading at
$1.2327, up 0.63% on the day.
Oil prices crept higher, lifted by the tide of trade
optimism and a decrease in U.S. crude inventories. U.S. crude oil futures edged up 0.07% to settle at $56.30
per barrel, while Brent crude oil futures settled at $60.95 per
barrel, a 0.41% increase.
Gold prices dropped on the signs of a thaw in trade tensions
and the upbeat U.S. data that sent investors to riskier assets.
Spot gold XAU= dropped 2.2% to $1,518.23 an ounce.
Copper CMCU3 rose 1.60% to $5,840.00 a tonne.
Three-month aluminum on the London Metal Exchange CMAL3
rose 0.90% to $1,791.00 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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