(Corrects asset manager name to Kingswood from Kingwood inparagraph 7)
* Graphic: World FX rates in 2019
* S&P futures indicate higher open on Wall Street
* WSJ reports Trump-Xi trade summit likely this month
* Dollar hits one-week high, specs increase long dollar bets
* Greek government bond yields hit 12-year low on ratingsboostBy Ritvik CarvalhoLONDON, March 4 (Reuters) - Global shares rose on Mondayamid growing optimism the United States and China will reach atrade agreement as soon as this month.U.S. President Donald Trump and Chinese President Xi Jinpingmight seal a formal trade deal around March 27, given progressin talks between the two countries, the Wall Street Journalreported on Sunday. The two nations have imposed tit-for-tat tariffs on billionsof dollars worth of each others' goods, roiling financialmarkets, disrupting manufacturing supply chains and shrinkingU.S. farm exports.A source briefed on the negotiations told Reuters the twocountries appear close to a deal that would roll back U.S.tariffs on at least $200 billion worth of Chinese goods. Stock markets welcomed the news, with European marketsfollowing their Asian counterparts higher. The pan-EuropeanSTOXX 600 index was up 0.4 percent. MSCI's All Country World Index , which tracksshares in 47 countries, was up 0.1 percent on the day.
"The market rebound has been driven by the prospect of aUS-China trade deal and the pause in Fed rate hikes," saidRupert Thompson, head of research at UK-based asset managerKingswood."While hopes on both fronts are likely to end up beingvindicated, the good news would largely now seem to be in theprice and the scope for further gains not that obvious."
E-mini futures for the S&P 500 index of U.S. stockswere up 0.3 percent by midday in London.In Asia, Chinese shares were the biggest gainers, with theblue-chip index up as much as 3 percent. The CSI300index rallied last week after index provider MSCI quadrupled itsweighting for mainland shares in its global benchmarks. Australian shares rose 0.4 percent and Hong Kong'sHang Seng index added 0.7 percent.That left MSCI's broadest index of Asia-Pacific sharesoutside Japan with gains of 0.3 percent. Theindex has risen almost 10 percent so far this year.Japan's Nikkei strengthened more than 1 percent.
POLICY EASING?March is expected to be a crucial month for global markets.Britain's parliament will vote on an agreement to leave theEuropean Union, the U.S. Federal Reserve will hold a policymeeting that could yield clues on its plans for interest ratesand balance sheet reduction, and the European Central Bank willhold its scheduled policy meeting this week. Morgan Stanley analysts noted that "easing on three fronts"globally -- trade tensions, China's monetary easing and theFed's flexibility and patience -- were helping ease globalfinancial conditions. "This easing trio is helping to reversethe global economy's downward trajectory," they said.
Surveys last week highlighted manufacturers' pain,particularly those exposed to China's slowdown, and added toexpectations that central banks are finished tightening policy . Citi's Economic Surprise Index for the Group ofTen economies fell to its lowest since 2012 last week. The indexshows that on average, economic data have been coming in belowconsensus forecasts.Investors seemed to show a glimmer of hope however - afterfalling for six consecutive months, a survey of investorbusiness morale for the euro zone ticked higher in March largelydue to hopes that an upturn in Asia might help the singlecurrency bloc. Greece's benchmark 10-year government bond yields dropped totheir lowest since 2006 on Monday after Moody's raised itsrating late last week, bolstering investor optimism towards theeuro zone's most indebted country. Moody's on Friday lifted Greece's issuer ratings to B1 fromB3, citing the effectiveness of the country's reform programme.The country plans to issue a 10-year bond this week, encouragedby the upgrade.In currencies, the dollar index rose against a basket ofmajor currencies to its highest in over a week. It was lasthigher 0.16 percent at 96.677.Speculators have ramped up long dollar bets, with the latestpositioning data showing net positions rising to $27.24 billionfor the week ending March 1 . Most of those bets arepositioned to take advantage of higher U.S. interest rates.The euro fell to its lowest in over a week, down0.25 percent on the day at $1.1334 .Elsewhere, oil prices gained on Monday with Brent futures up 0.7 percent at $65.51 a barrel. U.S. crude rose 0.6percent to $56.15.<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Economic Surprise Indexes from Citi ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Ritvik Carvalho, additional reporting by SujataRao and Mike Dolan in London; editing by Larry King)
Messaging: ritvik.carvalho.thomsonreuters@reuters.net)) Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.