NEW YORK (Reuters) - MSCI’s global stock index hit a record high on Thursday and the U.S. dollar index gained after President Donald Trump said the United States was “very close” to reaching a trade deal with China.
The comment, days before new U.S. tariffs on Chinese imports were to be imposed, also sent U.S. Treasury yields higher. Wall Street’s main indexes had pared gains by late afternoon trading after initially spiking higher after the comments.
Sterling fell from an eight-month high versus the dollar and deepened losses as the day wore on with voting underway in a U.K. election, which could decide whether Britain exits the European Union or holds a referendum that could reverse the country’s Brexit vote.
Earlier, European Central Bank head Christine Lagarde had promised a strategic review of the bank’s workings and left its easy money stance unchanged, as expected.
On Wednesday, the U.S. Federal Reserve held interest rates steady and signaled borrowing costs will not change anytime soon, with moderate economic growth and historically low unemployment expected to persist through the 2020 presidential election.
But U.S. investors appeared to be laser focused on U.S.-China trade relations, which has recently been a key reason for volatility. The market fell sharply last week when Trump said a deal may not come until after the 2020 presidential election.
“Having sent up that test balloon and failed, the administration is saying the Dec. 15 deadline needs to be extended,” said Art Hogan, chief market strategist at National Securities in New York.
“The market is saying we can remain constructive as long as you are working towards
