(Updates throughout, changes comment, byline, dateline fromprevious LONDON)
By Rodrigo Campos
NEW YORK, March 5 (Reuters) - Oil prices rallied on Mondayand stocks across the globe also rose as investors saw tariffthreats as a U.S. negotiating tactic and not a done deal, whileconcern ebbed over an inconclusive Italian election.
Stocks across the globe rose after four days of declines,with the U.S. benchmark S&P 500 higher and Europe closing at asession high as pressure grew on U.S. president Donald Trump toback off from planned tariffs on steel and aluminum. have at least a bit of a rethink regarding the prospectsof trade war," said Art Hogan of the higher stock prices in theearly afternoon. He said the Trump administration "sees thestock market as a report card for success and markets have sofar said this trade war is not a good idea."
Trump's hard talk regarding steel and aluminum tariffs"sounds like we're shifting back to posturing to get a betterNAFTA deal," Hogan added.
Trump said on Monday that Canada and Mexico could avoidbeing caught in his planned hefty tariffs on steel and aluminumimports if they ceded ground to Washington in trilateral talkson a new North American trade deal. Dow Jones Industrial Average .DJI rose 191.66 points,or 0.78 percent, to 24,729.72, the S&P 500 .SPX gained 21.58points, or 0.80 percent, to 2,712.83 and the Nasdaq Composite .IXIC added 57.00 points, or 0.79 percent, to 7,314.87.
The pan-European FTSEurofirst 300 index .FTEU3 rose 1.04percent and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.46 percent. market stocks lost 0.49 percent, weighed lower byAsia overnight. MSCI's broadest index of Asia-Pacific sharesoutside Japan .MIAPJ0000PUS closed 1.08 percent lower. Japan'sNikkei .N225 lost 0.66 percent, but Nikkei futures NKc1 rosenearly 1 percent.
The euro, which earlier fell as much as 0.4 percent versusthe U.S. dollar EUR= , edged higher against most major peers,including the greenback. common currency was whiplashed by weekend elections, asGermany's Social Democrats voted to re-enter a grand coalitionwith Chancellor Angela Merkel's conservatives, while resultsfrom Italy pointed to a messier outcome than expected - a strongshowing for anti-establishment parties and no group able to forma stable government. dollar index .DXY rose 0.09 percent, with the euro EUR= up 0.1 percent to $1.2329.
The Japanese yen weakened 0.31 percent versus the greenbackat 106.09 per dollar, while Sterling GBP= was last trading at$1.3847, up 0.33 percent on the day.
The Mexican peso lost 0.44 percent versus the U.S. dollar at18.88 and the Canadian dollar was down 0.82 percent against thegreenback at 1.30 per dollar.
Crude prices rose on forecasts for robust oil demand growthand concerns OPEC will not be able to increase its productioncapacity. crude CLcv1 rose 2.17 percent to $62.58 per barreland Brent LCOcv1 was last at $65.64, up 1.97 percent on theday.
Treasury yields turned higher as stocks surged pointing tomore risk tolerance in markets. 10-year notes US10YT=RR last fell 7/32 in priceto yield 2.8826 percent, from 2.857 percent late on Friday.
The 30-year bond US30YT=RR last fell 17/32 in price toyield 3.1597 percent, from 3.132 percent late on Friday.
Spot gold XAU= dropped 0.2 percent to $1,319.70 an ounce.U.S. gold futures GCcv1 fell 0.19 percent to $1,320.90 anounce.
Copper CMCU3 rose 0.43 percent to $6,928.00 a tonne.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Global assets in 2018
http://tmsnrt.rs/2jvdmXlGlobal currencies vs. dollar
http://tmsnrt.rs/2egbfVhEmerging markets in 2018
http://tmsnrt.rs/2ihRugVMSCI All Country Worldd Index Market Cap
http://tmsnrt.rs/2EmTD6j
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