By Sin\u00e9ad Carew and Amanda Cooper<\/p>\n
NEW YORK\/LONDON, May 11 (Reuters) – U.S. equity indexes inched ahead to record closing highs while the dollar edged higher on Monday, as investors awaited a meeting between U.S. President Donald Trump and \u200cChinese President Xi Jinping.<\/p>\n
Oil prices rallied as Trump said the U.S. ceasefire with Iran was “on life support,” after dismissing Tehran’s \u200cresponse to a U.S. peace proposal as “stupid.” His remarks stoked worries that the 10-week-old conflict will drag on, paralyzing shipping through the Strait of Hormuz.<\/p>\n
Iran’s response had \u200bfocused on ending the war on all fronts and Tehran demanded compensation for war damage, emphasized its sovereignty over the Strait of Hormuz, and called on the U.S. to end its naval blockade, guarantee no further attacks, lift sanctions and remove a ban on Iranian oil sales.<\/p>\n
But, with the Middle East expected to be a key part of the agenda this week at Trump and Xi’s first face-to-face talks in \u200cmore than six months, Scott Wren, senior global \u2060market strategist at Wells Fargo Investment Institute, said that investors were cautiously hopeful for some progress toward peace.<\/p>\n
“It’s all about the strait and when it’s going to open,” said Wren. “There’s some optimism that China will \u2060have some influence in resolving the strait issue.”<\/p>\n
On Wall Street, the S&P 500 rose 13.91 points, or 0.19%, to 7,412.84 and the Nasdaq Composite rose 27.05 points, or 0.10%, to 26,274.13, record closing highs for both. The Dow Jones Industrial Average rose 95.31 points, or 0.19%, to 49,704.47, still shy \u200bof its \u200bFebruary 10 record close.<\/p>\n
MSCI’s gauge of stocks across the globe rose 2.38 points, \u200bor 0.22%, to 1,108.01. Earlier the pan-European STOXX 600 \u200cindex closed up 0.11%.<\/p>\n
In currencies, the dollar retreated from session highs after Trump’s rebuff of Iran’s response kept concerns about an extended war intact.<\/p>\n
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.05% to 97.96, with the euro down 0.06% at $1.1777.<\/p>\n
Against the Japanese yen, the dollar strengthened 0.37% to 157.23.<\/p>\n
Sterling weakened 0.16% to $1.361 as British Prime Minister Keir Starmer attempted to quell a rebellion within his ruling Labour party following a mauling in last week’s local elections.<\/p>\n
In energy markets, oil \u200cprices settled up nearly 3% after Trump’s comments fueled supply fears as the \u200bStrait of Hormuz stayed largely closed with no clear end in sight for \u200bthe war.<\/p>\n
U.S. crude settled up 2.78%, or $2.65 at $98.07 a barrel. \u200bBrent rose to $104.21 per barrel, up 2.88%, or $2.92 for the day.<\/p>\n
U.S. Treasury yields rose as rising oil \u200cprices stoked inflation worries.<\/p>\n
The yield on benchmark U.S. 10-year \u200bnotes rose 4.6 basis points to 4.41%, \u200bfrom 4.364% late on Friday. The 30-year bond yield rose 3.6 basis points to 4.9835%.<\/p>\n
The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, rose 5.9 basis points to 3.952%.<\/p>\n
Gold prices reversed course to \u200brise in volatile trading on Monday, as \u200cinvestors assessed developments in U.S.-Iran diplomacy and waited for key U.S. inflation data due later this week.<\/p>\n
Spot gold rose \u200b0.44% to $4,735.39 an ounce. U.S. gold futures rose 0.15% to $4,727.70 an ounce.<\/p>\n
(Reporting by Sin\u00e9ad Carew, Amanda Cooper, Editing by \u200bStephen Coates, Gareth Jones, Mark Potter, Nia Williams and David Gregorio)<\/p>\n","protected":false},"excerpt":{"rendered":"By Sin\u00e9ad Carew and Amanda Cooper NEW YORK\/LONDON, May 11 (Reuters) – U.S. equity indexes inched ahead to…\n","protected":false},"author":3,"featured_media":789810,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[6],"tags":[29220,64,83,11411,5005,31368,5503,67,132,68],"class_list":["post-789809","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-basis-points","tag-business","tag-iran","tag-oil-prices","tag-president-donald-trump","tag-president-xi-jinping","tag-strait-of-hormuz","tag-united-states","tag-unitedstates","tag-us"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/116558601035287078","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/789809","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=789809"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/789809\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/789810"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=789809"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=789809"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=789809"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}