Trade hopes carry Wall Street to highs

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(Reuters) – The New York Stock Exchange ended Friday in the green to allow the S & P-500 and Nasdaq Composite to finish their best week in seven years, investors hailing hope for an agreement in the trade dispute between the first two economies of the world.

The talks between China and the United States are moving in the right direction, said a Chinese official on the sidelines of the G20 summit in Buenos Aires.

"The chances of reaching consensus are increasing," said Wang Xiaolong, the director general for international economic affairs at the Foreign Ministry, while noting that differences remain.

Hesitant at the opening, the Wall Street indexes settled in the green after these statements.

The Dow Jones index gained 199.62 points, or 0.79% to 25,538.46 points.

The broader S & P-500 took 22.40 points, or 0.82%, to 2,760.16.

The Nasdaq Composite advanced by 57.46 points (0.79%) to 7,330.54.

Over the week, the S & P-500 and Nasdaq took 4.8% and 5.6%, respectively, both posting their highest weekly percentage increase since December 2011, the Dow (+ 5.1%) having to settle for of his best week in two years.

Over the whole of November, the S & P took 1.8%, Dow 1.7% and Nasdaq 0.3%.

The G20 summit was opened at the beginning of the day in Buenos Aires but for many investors, the only meeting that really counts is the one set by US President Donald Trump and Chinese Xi Jinping, Saturday for a dinner that should be dominated by trade tensions.

Donald Trump told reporters on Friday that "something could emerge" at this meal.

US Trade Representative Robert Lighthizer said he would be surprised if this tete-a-tete did not lead to an agreement, words praised by the markets. But some commentators caution against over-optimism.

VALUES

Trade-sensitive stocks have steadily shone on Wall Street, with Caterpillar (+ 4.18%), the Dow's biggest gain ahead of Intel (+ 3.38%). To note again, the good session of General Motors (+ 3.18%).

THE SESSION IN EUROPE

The main European stock markets closed in the red the last session of a month of painful November for equity investors on this side of the Atlantic, uncertainties over the evolution of the trade dispute between the United States and China having limited rebound tendencies.

In Paris, the CAC 40 finished down 0.05% to 5.003.92 points after spending part of the session under 5.000 points. The British Footsie yielded 0.83% and the German Dax 0.36%.

The EuroStoxx 50 index fell by 0.03%, the FTSEurofirst 300 by 0.19% and the Stoxx 600 by 0.17%.

EXCHANGE

Already well oriented at the start of the day thanks to its safe haven status amid uncertainties related to trade tensions, the dollar increased its gains with the opening of US markets and posted at the close of Wall Street a rise of 0, 5% against a basket of reference currencies.

The euro, it leaves 0.7% against the greenback at 1.1310.

RATE

In the bond market, European benchmark government bond yields remain close to their lowest levels for three months after the first figures of inflation in the euro area.

That of the German ten-year Bund ends the week close to 0.31%, down almost eight basis points over the whole of November.

Always closely watched, Italian yields ended the day slightly higher after the downward revision of the gross domestic product (GDP) of the third quarter, to -0.1% while a first estimate had given it unchanged, which makes fear the employers of the peninsula an entry to the recession at the end of the year.

Fragile for its part by the downward revision of expectations of interest rate changes of the Federal Reserve next year, the US 10-year yield is barely above the 3% mark.

Its decline contributes to a further flattening of the yield curve: the spread between yields at two and ten years has returned briefly below 20 basis points, for the first time since August.

OIL

Oil prices ended lower in November, which saw them fall by more than 20% due to concerns over the glut of global supply.

The January contract on the US light crude (West Texas Intermediate, WTI) lost 52 cents on the last session of the month, or 1.01%, to 50.93 dollars per barrel.

Brent of the same maturity sold 80 cents (1.34%) to 58.71 dollars.

Russian Energy Minister Alexander Novak was due to meet with his Saudi counterpart on Friday during the G20 Buenos Aires summit to discuss a reduction in oil production in 2019, the Russian news agency reported. RIA.

The possibility of a reduction in production will dominate the agenda of the OPEC meeting next Thursday and Friday in Vienna.

"Prices could fall sharply if OPEC left production unchanged," say analysts at Capital Markets, who say they expect an agreement between OPEC and Russia for a limited reduction in pumping.

(Patrick Vignal for French service, with Stephen Culp in New York)