NEW YORK (Reuters) - Global equity markets edged higher on Monday, lifting prices of U.S. government debt, as a new 90-day extension allowing U.S. companies to do business with China’s Huawei eased the latest spike in investor angst over U.S.-Sino trade tensions.
The three major U.S. stock indexes set fresh intraday highs while MSCI’s gauge of equity performance worldwide rose to within 1% of a record peak set in January 2018.
The stock rally reversed earlier losses sparked by conflicting reports about the outlook for ending the 16-month trade war between the world’s two largest economies that has weighed on global growth and roiled capital markets.
The U.S. Commerce Department added Huawei Technologies Co Ltd HWT.UL to an economic blacklist in May, citing security concerns, but has allowed it to purchase some American-made goods in a series of 90-day license extensions.
Early on Monday, a CNBC report cast fresh doubts about the prospects for a phase I of a U.S.-China trade deal, saying the mood in Beijing was pessimistic due to President Donald Trump’s reluctance to roll back tariffs on Chinese imports.
The report halted earlier rallies in Europe and Asia after Chinese state media Xinhua over the weekend said that Washington and Beijing had held “constructive” talks.
“Progress doesn’t happen in a straight line and that is starting to frustrate people today,” said Scott Ladner, chief investment officer at Horizon Investments in Raleigh, North Carolina. “It feels very herky-jerky.”
MSCI’s all-country world index .MIWD00000PUS of global stock performance gained 0.13%.
In Europe, the pan-European STOXX 600 index closed down 0.01% while the FTSEurofirst 300 index .FTEU3 of leading
