Global stocks climb on muted trade hopes, dollar slips

NEW YORK (Reuters) – World equity markets rebounded on Friday from the previous day’s sharp fall, after U.S. President Donald Trump said complaints against China’s Huawei Technologies Co Ltd might be resolved within the framework of a Sino-U.S. trade deal.

Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., May 23, 2019. REUTERS/Brendan McDermid

Tensions remained high, with China accusing U.S. Secretary of State Mike Pompeo of fabricating rumors after he said Huawei’s chief executive was lying about the telecom network gear maker’s ties to the Chinese government.

On Thursday, Trump said a trade deal could resolve U.S. complaints against Huawei, but he also called the company “very dangerous.”

“Today’s action is mostly based on sentiment because the overall market is trading at a full valuation,” Rahul Shah, CEO of Ideal Asset Management in New York, said of equities.

Investments remain highly susceptible to headline risk, Shah said, though investors took in stride a U.S. Commerce Department report that said new orders for domestic capital goods fell more than expected in April.

The report also showed March orders were not as strong as previously thought, and shipments were weak over the last two months, further evidence that manufacturing and the U.S. economy were slowing.

MSCI’s gauge of stock performance across 47 countries gained 0.39%, while the pan-European STOXX 600 index closed up 0.56%.

Investors appeared unfazed by British Prime Minister Theresa May’s resignation as Conservative party leader after failing in a final attempt to win parliamentary support for her deal to exit the European

Keep reading this article on Reuters Business.

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