NEW YORK (Reuters) - The dollar rebounded and global equity markets edged lower on Thursday as efforts by China to smooth the path forward in U.S.-Sino trade talks helped sooth investor sentiment, though fears remained that a phase one deal might not occur until next year.
Oil prices rose to a two-month high after Reuters reported the Organization of the Petroleum Exporting Countries and its allies are likely to extend existing output cuts until mid-2020.
Yields on government debt rose, snapping three sessions of declines, bolstered by China saying it was willing to work with the United States to resolve core trade concerns, which rekindled some hope for a bilateral deal.
A Wall Street Journal report that said China had invited top U.S. trade negotiators for a new round of face-to-face talks in Beijing also lifted sentiment.
Germany's trade-sensitive DAX index .GDAXI pared most losses to close 0.16% lower, while the Dow Industrials and S&P 500 index also pared early losses to briefly trade above break-even, before closing lower.
“This just shows that the trade deal is not dead and that we will get some sort of an extended truce, which is a positive,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
“What we’re going through now is a market beginning to realize the daily rhetoric of the trade news – one day positive, one day negative – is beginning to wear off,” he said.
MSCI’s gauge of stocks across the globe .MIWD00000PUS shed 0.3%, while the pan-European STOXX 600 index lost 0.40%.
On Wall Street, the Dow Jones
