Global Markets: Stocks trade mostly flat on trade talk optimism

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NEW YORK/LONDON/SHANGHAI

The global stock markets traded little changed on Tuesday as record highs on Wall Street were offset by caution as traders scrutinized the latest developments in the prolonged U.S.-China trade talks. MSCI’s gauge of stocks across the globe .MIWD00000PUS gained 0.07%, as the global benchmark traded within half a percentage point of an all-time high set in January 2018.

Equity markets have rallied on hopes of a deal but traders are looking for what the reaction might be once a deal is reached, said Dennis Dick, a proprietary trader at Bright Trading LLC in Las Vegas. Traders are starting to book some profits and just get cautious. Cautious optimism is driving us higher right now, he said. The pan-European STOXX 600 index rose 0.17% while MSCI’s emerging markets index .MSCIEF fell 0.63%.

All three major indexes on Wall Street set record highs. The Dow Jones Industrial Average .DJI rose 28.37 points, or 0.1%, to 28,094.84. The S&P 500 .SPX gained 4.34 points, or 0.14%, to 3,137.98 and the Nasdaq Composite .IXIC added 17.04 points, or 0.2%, to 8,649.52.

Data showed the U.S. goods trade deficit fell sharply in October as both exports and imports declined, pointing to a continued reduction in trade flows that has been blamed on the Trump administration’s “America First” policy.

U.S. consumer confidence fell for a fourth straight month in November while other data showed an unexpected drop in newhome sales last month. The dollar index .DXY was flat, with the euro EUR= up 0.02% to $1.1015. The Japanese yen JPY= weakened 0.12% versus the greenback at 109.06 per dollar. Benchmark 10-year U.S. Treasury notes US10YT=RR last rose 10/32 in price to push their yield down to 1.7311%.

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